- Know the value of your product. Be proud of your products, but not unrealistic
- Be as flexible as you can with customer payment options - make it easy for customers to pay whichever way best suits them via credit card, cash, lay by etc.
- Don't just offer one thing at one price point
- Review your pricing and business expenses regularly
Galerie Montmartre owner Shelly Collins considers many factors when setting prices for her product. Establishing what you will charge is important and if your product range is unique or different, it can add all sorts of complexities to pricing.
'I established my business, Galerie Montmartre, in 2002, selling oversized original vintage advertising posters via a retail shop and online. I source most of my stock from Europe, beginning the business as a collector of vintage posters,' said Shelly.
Knowing your market helps determine prices
Shelly says market research is the key.
'I understood the world market, the demand for this kind of art and the fact that I'm dealing with a product that is a finite source,' she says. 'Market research helped me gather the right information I needed to identify and define the world market and the demand for this kind of art.'
She prices her product using a range of factors including:
- a piece's 'uniqueness'
- how much it costs to buy
- wages and other fixed business costs.
Every six months, she reviews outgoings and prices, pieces she hasn't sold and pieces that have moved quickly.
Not only does Galerie Montmartre sell large vintage advertising posters, they sell smaller artworks and postcards set to the same themes.
Offer a range of products and price points
Shelly believes having a range of products and price points is important. 'I think I have a beautiful, truly unique product but I never lose sight of the fact that art should be for the people so I source and price pieces from every style, era, size and most importantly, for every budget. My business success is based on getting the prices right,' she says.
Shelly reviews her pricing every six months and makes sure she has a range of products to suit every budget. 'Good research and a good plan helps you make sure your pricing strategy lines up with your target market.'