Products and Prices
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Often times, the hardest bit to do when doing your craft show is naming your price. Price naming would depend on a lot of people. Some people would price too high, others would price too low. Rarely do you get to agree on a price with your customer. This often leads to poor sales, and sometimes, even deals that go sour.
There are times when you have to deal with the customer regarding prices and what not. Often times this leads to arguments and disagreements which is one thing that you really don't need in a business, a conflict.
Basically, in order to prevent such bad things from happening within the business, one must understand the importance of assumed value versus actual value. What is the difference between the two? How do we balance them? And why are they important?
Assumed value is the price that the owner of the product puts up for the general masses. Assumed value is what the owner thinks he should tag his product with. There are many basis for the owner to tag his item with. He can add the cost of labor, the cost of product, the cost of time, the cost of storage and transportation, and the list can go on and on and on. Adding all of these up and then taking the summation of all of that is the assumed value of the product.
Another type of assumed value is the price that the customer perceives that should be for that particular product. Assumed value in the customer side has also a lot of things to be considered. You have the criteria for aesthetics, or how good it looks; practicality, like where you are going to use it (and if you will use it often), and of course, the utility price of the product; how long does it last or will its value go up and down over the years?
Article Source: Articlelogy.com
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