Successful Holiday Price Point Strategies
Gift Wrap Option by megandarienzo on Etsy
Successful Holiday Price Point Strategies
This will be my fifth holiday season on Etsy, and I have learned a lot of valuable lessons during my tenure in the glitter-filled trenches. No matter how many times I run errands or order packing materials, I will always run out when I need them the most. I have learned to take lots of salt baths and to ice my hands and shoulders so I don’t come out of my studio in January looking like a hunchback. My husband can (and will!) sew on buttons and pom poms in a pinch. Shipping orders from home will save you SO much stress, just do it! Most importantly, I’ve learned that establishing a variety of strategic price points in my shop will lead to the most success, making all the hair-pulling stress and insanity of the busiest shopping season worthwhile.
Most of us have items at at least a few different prices in our shop. Make a list of pricing categories in your shop and spend a few minutes considering who will buy items in each price range. I’m often looking to spend a set amount on a friend or family member – $25, $50 or $100. If you have several items priced just above $50 or $100, consider adjusting your prices slightly to appeal to those with a set budget in mind. Also consider bundling lower priced items into gift sets to appeal to those wanting more bang for their buck but also wanting to spend a set amount. I’ve put several times together at a small discount with combined shipping, and found that $50 and $100 price points are more popular during the holidays than I thought. While many people shopping in a mall are attracted to $10 and under times, I very rarely sell low priced items in my shop during the holidays. Most people don’t want to pay shipping on a low cost item, so bundling can be a good way to offer several lower priced items with combined shipping.
Many shoppers love to buy multiples, so make sure to up your item quantity for listings for custom items. I have had a single individual purchase 10 custom pet portraits for each member of his family. It worked well for him because he could get everyone in his family something thoughtful and handmade, and he was done with his holiday shopping in one quick click. Responding quickly to conversations and requests to purchase multiple items is a great way to make the most out of shoppers looking for a swift gift solution. Catching people while their interest is on your shop is crucial, because I’ve found many gift seekers tend to move on more quickly than those shopping for themselves.
Gift certificates are a great way to catch last minute shoppers or those who want to purchase a custom item for a friend but aren’t sure of their size or preference. I have offered very specific gift certificates in the past, not just for dollar amounts, but for a custom pet portrait or custom pet sweater and hat set. I’ve found these to be much more popular than general gift certificates. I also provide customers with a printed certificate explaining the item, and a pdf version via email for those who leave shopping down to the wire.
Offer free gift wrapping OR sell it as a separate service. I purchased from a seller once who offered one style of wrapping included in the price and a second more elaborate wrapping as a separate sale. I opted for the fancier packaging and was really pleased with the result. While I have not had time to offer add-ons like dressed up packaging in my shop during the holidays, I would definitely recommend it to those who are able. You might be surprised by how many people want the same unique artistry in gift wrapping that they do in the item they purchase. It was very attractive to me as a buyer, and the seller was able to earn an extra $5-10 on some purchases.
Finally, don’t feel like you have to have bargain basement prices to be competitive. If you invest time and energy in cultivating a unique and polished look for your shop, you should be able to attract buyers willing to pay what your items are worth. You can make more selling less, and will be happier and healthier as a result. There will always be those out there who are practically selling their items at a loss, but they won’t be able to sustain their business in the long term. As a group of independent artists and business owners, we should stick together and set a standard for selling handmade.