Strategically settting prices for your work is essential to growing your business. Always take into consideration costs, wages and value in order to provide a profit. Setting prices arbitrarily without regard for your costs or the perceived value of your work may be costing you. So, knowing how to price correctly at the start will help you.
Selling too low creates expectation for further “sales” prices. Yet, selling too high may cause you to miss opportunities. Find a balance and stay consistent. Find a formula to keep prices consistent. Then raise or lower based on that formula.
You will lose if you don’t know your costs and value. Expenses are obvious. You have to know what the materials cost in order to turn a profit. Your value is part emotional and common sense. Take into consideration the time you have invested in the piece. You never want to discount your time. However, don’t get so emotionally attached to a piece that you over value it.
If you are represented by someone, undercutting their sales price can hurt their business and in turn yours. If someone can buy from you for less, why would they buy from you representative? Obviously, they wouldn’t. Your rep is important. Make sure they know that by respecting their prices.
However, discounts can always be made. For example, should a customer buy more than one piece or select a piece that has been in your inventory for months a discount can easily be added. Similarly, you can increase prices if the customer wants to commission a piece.
Find a strategy and stay consistent.