by Carolyn Edlund
Are your prices diversified? Capture more business by reaching new markets and new customers.
In the world of art, reaching a broader audience and boosting your sales isn’t just about creating stunning pieces. It’s also about pricing them strategically. Have you ever thought about whether your prices cater to a diverse range of customers? By offering options that accommodate both budget-conscious buyers and those looking for high-end pieces, you can expand your customer base, encourage repeat purchases, and grow your art business.
When new collectors want to initially buy in to your brand and your line, they might not be able to afford an original right off the bat. You can gain new customers, who often become repeat collectors, by offering price points that are easier on their wallets. This allows them to own a piece of your art even if they cannot yet afford to buy a big piece.
Spreading your price points makes a lot of sense. If everything you make and offer is within a narrow range, you are ignoring potential customers at both ends. You won’t have product for those who have a small budget. And, you aren’t realizing higher-priced sales either by selling to more affluent collectors with larger budgets.
Here’s an easy example. If you design and create handmade jewelry, you might have some amazing showpiece necklaces that sell for $1,000 and up. They will grab attention and interest, but ultimately customers with a tighter budget opt for the $80 earrings that still show your unique style and that are made by you. They are getting your original work, owning a piece of your creativity, your imagination, your brand and all the wonderfulness that entails, at a price they can afford. As they continue to collect, they may be able to increase their spending because they really value what you make, can more easily justify the cost, or have a bigger budget for discretionary purchases.
Other collectors will spend $300 or so for a bracelet or small necklace. And, there are more affluent customers to whom that $1,000 showpiece is not a stretch. They may want a higher-end piece that’s even more special, unique or one-of-a-kind. For that customer, you might consider creating a new body of work in a more expensive range altogether. This gives you the opportunity to tap into an entirely new marketplace with an enthusiastic and affluent audience.
Here’s another reason that a price point spread matters: the very same customer may be willing to pay a lot more for your work for certain reasons. If they are purchasing a wedding gift, for example, they may spend $250 on a fabulous ceramic centerpiece for the bride and groom. If they are purchasing a birthday gift for their niece, they may be looking at a more reasonable $40 or $50 price point. And for themselves? Well, the sky is often the limit if they fall in love with what you make. You may see them splurge on a purchase of an amazing piece of wearable art, or a fantastic painting that will transform a room and make them happy every time they see it.
What is your current price point spread? Have you considered your market, your customers and why they are buying? When you design your line, do you have a good gift price range for weddings, holiday gifts, anniversaries, birthdays? Does your business strategy include repeat sales to collectors, knowing the next purchase they should make? It can broaden your market, increase your sales and reach whole new levels you might not have imagined.