BizTalk features bite-sized articles that deal with all aspects of the Wood Crafting business. Topics ranging from pricing to shipping and delivery, BizTalk and our community forums are there to help you become successful. (Please see our Terms and Conditions)
Whether you are a hobbyist woodworker or a seasoned professional, setting the price for an item you have completed or plan to fabricate can sometimes seem like a form of black magic. Some of you may have seen formulas that base your price solely on the cost of materials multiplied by a certain factor. This may work for some of you, but for most of us, doing a more elaborate calculation may uncover opportunities to be more competitive and possibly even make more money. This is not to say that with more experience you can't develop your own formula that will greatly simplify the pricing process and get you to where you want to be. But with a more detailed analysis, you will at least understand everything that goes into the making of your masterpiece.
Many books have been written on the art of product pricing, but one element of pricing that is difficult to quantify is the level at which a product price can influence certain human perceptions and behaviors.
How much actual or perceived quality, value and uptick in social standing can a price have on a buyer, is something that can often be observed but not necessarily measured.
Premium priced products such as luxury automobiles and watches often have a loyal following of customers willing to pay those higher prices. Onlookers often perceive these customers as connoisseurs, leaders, discerning and successful to name a few.