Marketing at the Right Price Point
I was reading an interesting article in Gift Focus Magazine recently about getting the price point right for your creations. Gift Focus is a gift ware trade magazine sent to retailers throughout the UK.
In the first edition of 2012, an ‘Industry Insight’ article was focused on getting the right price point for your goods. A handful of suppliers and retailers were interviewed about the current climate and it became quite apparent that there has been an insurgence in the £10 category in recent months. Customers will not hesitate in spending £10 as these are more likely to be impulse buys.
With forecasts still gloomy, the retail climate continues to be a tough one, it is important as a maker to offer retailers what customer are demanding, and at the moment it is gifts valued around £10. As a maker myself, it is increasingly difficult to create and offer such goods when the cost of raw materials continues to rise. Also taking in to account the retailers mark-up as well as your own! With this in mind, a maker has to sell an item for £4 in order for the retailer to sell at £10. Not only difficult, but also having to compete the foreign, mass produced goods!
The article has been an interesting read and one which I am now taking into account. It has made me think about reducing my costs i.e., buying in cheaper/alternative materials, without compromising the end product. The key being to create fun and unusual items that customers still believe to be good value for money. It’s not easy having to be one step ahead, but the beauty of handcrafted products, is that they are unique and will often stand out against the mass produced. Keep creating!!
Kathryn, Lazy Daisy Glass
Thank you to Kathryn of Lazy Daisy Glass for her thought-provoking blog – This is the first of a series of guest blogs by craft makers and retailers which will be hosted by Northings Crafts Blogs in 2012. If you are interested in contributing to our blog site, please feel free to contact Avril on firstname.lastname@example.org