Hi everyone,

Happy 2014! I hope you are ready to have a fantastic year!

cover 11In December I polled our Liberty Jane Partners (roughly 1,300 people) and asked them what topic or issue they wanted me to focus on more as I work on blog posts and ebooks.

The topic that got the strongest vote was – pricing. So I’m finishing up a brief ebook about it. But rather than just publish the ebook, I thought I’d put out the entire thing and ask for your feedback & commentary. Then when all the chapters are released – I’ll consolidate all of it into an ebook, (which I plan to give away for free).

So – here is the introduction and the first principle. Over the next few weeks I’ll put out all 10 principles for your review and input.

Pricing Principle #1 – You Need A Pricing Strategy. There are three common strategies to choose from.

[ This post has been truncated so that the full collection of pricing principles can be placed on the Kindle platform as Craft Pricing Power. For the spring of 2014 you can download it for free on the last Friday of every month. Get it here. ]

42 Comments on Introducing Internet Pricing Power

  1. WAKE UP CALL! Simple and to the point. What “WE” think ot the value of the Widgit we’re selling and how we arrived there is not the point. It is what the buyer is willing to pay. You have offered a simple and simultaneously effective method for pricing. Having a strategy. Excellent advice!

    • Thanks Lee,

      Yeah it is almost too simple a point to make (you need a strategy) but I’m guessing most small businesses owners don’t have one.

      Jason

  2. I recognize in myself and pricing the neutral pricing because I have always catered to more of the play line of AG dolls. For craft shows and my website, I feel like neutral pricing works best but I would love to give the Premium a go via Etsy where you can acquire more adult collectors and those who can appreciate your brand.

    • Hi Tari,

      Good points! Neutral pricing is safest.

      Jason

    • This is how I feel. I appreciate the style and craftsmanship of the Premium Pricers but don’t want to lose the “play”value of what we’re offering. Nor do I want to lose the quality that comes with the quickly made, cheaply sold items of some chain stores. By this you lose some of the sweetness of those handmade items and the love that goes into each piece you present. I am more of a neutral pricer, but would like to offer ensembles that work together well…to show what can be done with each unique pattern. These ensembles are what make it fun!

  3. This was a really helpful article and I think I will use it to help determine the pricing of my next collection. I’ll use the neutral strategy as my Brand has not been totally established and I wouldn’t consider it a industry leader. I will be selling the samples that I’ve created to develop my spring pattern collection. To determine my pricing I think I will research what others in the same catagory are pricing as well as some industry leaders.
    Thanks for publishing this article. I’m looking forward to the next chapter.

    • Thanks Jennifer,

      Let us know how we can help – Go Bonjour Teaspoon!

      Jason

  4. I’m interested in finding a combination between the neutral and premium pricing strategies. I do believe there is a place for having sales or coupons available to bridge the gap in times where sales are slow or to create your own ebb and flow for sales without risking the brand reputation. It may be a fine line though.

    • Good point…I agree – the challenge is that it can get addicting. The more creative options like contests & giveaways take more mental energy, but I think they pay off better in the end.

      Jason

  5. Thank you Jason for this much need and helpful information about pricing. This information about pricing is perfect timing for me. I’m interested in sewing the doll clothes as well as some other items. I have researched other doll clothes makers to see their styles, quality of workmanship and pricing– it seems tricky to me at how to land on the correct price? I have been watching others on ebay and etsy and their doll clothes don’t sell? Or are priced at such a low price how can they be making a profit? I appreciate your more than generous help in offering this timely information. Blessings to you in 2014.
    Diana M Cook

  6. Thanks Jason! Well said. The seller not only has to determine what the market will bear, but what they are brave enough to ask for their product or service. When I started my business I lacked confidence in my work so I started with a low price. I was immediately inundated with customers, many of which have been loyal. The next pricing problem being, are the customers buying because of the price only and will they continue to buy if the price goes up. A lot of pricing confidence is dependent on the personality of the seller. Having these articles could be really helpful to build that confidence.

  7. A sale for short tem discount is my pricing strategy. I like all of the pricing principles and will keep them for future use. Thanks Jason I am looking forward to your finished version so I can read all of the principles together.

  8. This says a lot in a small amount of time. I also think adding in a buy two or three items get one free (at equal or lesser value) when your sales are declining or your just starting out can help for more business traffic. Also packaging says a lot about how you feel about your product. If it’s packaged cute and sweet people will remember that vs. just popped into a shipping package and sent on it’s way. It’s also adds a nice touch to send along a thank you to the buyer with the product. Customers will remember that and feel more welcome to come back.

  9. Thanks Jason for the info. Being new at trying to sell has been some what difficult. I was pricing by the difficulty of the outfit. Example items that I made from leather I was pricing higher. So you principles on pricing is going to be a great help. Looking forward to the rest book.

  10. CommentGood text, all the time with people and the best option is cost-neutral because the market is currently unstable. Greetings to you

  11. Thought I would add my voice to the long list here as I was very interested to read about the premium pricing strategy. I had begun doubting my own ability in becoming a business owner, and had actually started saying to people that I don’t have a business but a hobby because without an income from customers you cannot call something a business. Yet when I read your paragraph; “This strategy requires a focus on quality, design, and brand building – not on short-term sales goals. This strategy requires the most stubborn, disciplined, and long-term business thinking. In many ways, it requires an emotional attitude of supreme confidence in your product or service. It takes an unflinching commitment to value your product or service at a high level, even in the face of low sales volume.” I feel steeled. Although I have not had any customers there are people out there interested in what I do, cause they sign up to my newsletter so eventually when the brand is strong enough sales will come…
    Thank you for sharing the pricing principles 🙂

    • Yeah – hang in there. To quote Eugene Peterson, sometimes you need to have a “long obedience in the same direction”.

      Jason

  12. Being new to the whole idea of online selling, I am at this time a little overwhelmed by everything I need to consider. This is a very clear breakdown (and yes, probably obvious to those in business)
    that I can follow and understand. Thanks

    • Thanks Marly. We wrote Craft Business Power as a 15 day (or step) guide to figuring it all out. It certainly is a lot to think about.

  13. Thank you so much Jason it is perfect timing! I also have checked on the competitions pricing and wondered how can they make a profit? So, I decided to really focus on my brand. I know my product is excellently constructed (thanks for giving me the confidence to say this) and that my outfits are stylish.
    I did several vendor shows this fall so I ordered boxes and bags, labelled them all with my shop info. I did really well and also generated more sales as a result. There has also been an increase in views to my shop. Now all I have to do is add more product!

    • Good idea! Packaging is a key part of the customer experience – having high quality packaging makes a bold statement to customers & reinforces the perception of high quality.

  14. Thanks for a great article, Jason! Just wondering…I remember being told once that the time to offer discounts, sales and coupons is during the busy season since it hooks customers and they come back during your down time too. Your thoughts?

    • Hi Sue,

      I know that it’s very common to do, but I think the alternatives, (contests, giveaways, and events that build participation), are a better option – at every time of year. They give customers something – but don’t create the expectation of future discounts.

      Hope that helps,

      Jason

  15. I sell mainly at craft fairs and vendor events. My sales had been slow so I put up a “sale” sign. I made an inexpensive pair of pull on jeans and a t shirt and sold them in pairs. Your choice any jeans and any t shirt. I was soon selling out of not only the sale item but other items as well because people felt them were getting such a great deal.

  16. Excellent!
    This is an issue we have at the company I’m working (My brother’s small business), and of course with my own business ventures.
    I’ve done accounting up to university level, and costing is done in depth (I’ve scratched out my books again) but pricing not really.
    This is so helpful, comes at a perfect time. I’m going to use the principles to measure our pricing, which is really neutral, sometimes leaning to low end.
    For my own stuff, I’m going to test my market.
    I always enjoy your articles & books!

    • Thank you – glad you’re liking these ideas. We’re only half way done too – lots of good stuff coming up in the next 5 principles…

      Jason

  17. This is really interesting, You are a very skilled blogger.
    I have joined your rss feed and look forward to seeking more of your excellent post.
    Also, I’ve shared your web site in my social networks!

  18. Amazing blog! Do you have any hints for aspiring writers?
    I’m hoping to start my own site soon but I’m a little lost on everything.

    Would you propose starting with a free platform like WordPress or go for a paid option?
    There are so many options out there that I’m totally confused ..
    Any ideas? Cheers!

    • I’m actually finishing up a new video training course for self-publishers. I’ll be announcing it soon – so stay tuned. To answer your question – I think starting a very focused blog can be a good way to start your writing career. I started by setting up http://www.marketingonpinterest.com – and he launched my writing career…It’s a good strategy if the topic is fresh and there aren’t too many people writing about it yet – that was the case when I started the Marketing On Pinterest blog – now of course – everyone is writing about Pinterest.

      Hope that helps,

      Jason

  19. Hello would you mind stating which blog platform you’re using?
    I’m looking to start my own blog in the near future but
    I’m having a tough time deciding between BlogEngine/Wordpress/B2evolution and Drupal.

    The reason I ask is because your layout seems different then most
    blogs and I’m looking for something unique. P.S Apologies for
    getting off-topic but I had to ask!

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