Pricing your merchandise is both an art and a science. Here’s how to approach pricing your products to maximize both sales and profitability.
1. Determine Your Desired Profit Margin
The first step in pricing your merchandise is deciding how much profit you want to make on each sale. Crowdmade makes it easy—you simply set your earnings per item in the product editor. The key is to balance this with the total retail price so that you don’t price yourself out of your market.
What to do:
- In Crowdmade’s product editor, set the exact amount you want to earn on each product.
- Remember you can always adjust this price later in the product editor.
2. Understand the Value of Your Brand
Your merchandise isn’t just about the physical product; it’s about what it represents. Fans are willing to pay more because they value the connection they have with you. It’s important to price your products in a way that reflects their true value.
What to do:
- Price your products higher than normal retail items to reflect the brand value.
- Remember that buyers know creator products are made on a smaller scale, and they expect to pay more compared to mass-produced retail items.
3. Overcome the Fear of High Pricing
A common mistake is feeling apprehensive about charging what you think might be too high a price. But here’s the truth: you’re not pushing a price on your fans—they’ll decide for themselves if it’s worth it. What we’ve learned over the years is that creator merchandise often sells at a high premium compared to standard retail products, and many creators cut themselves short unnecessarily.
What to do:
- Set your prices confidently and let the market decide. If someone feels the price is too high, they won’t buy right now, but they might later if you adjust the price.
- Don’t undervalue your work or your brand—let your audience decide what they’re willing to pay.
4. Test and Adjust
Pricing isn’t set in stone. Once you’ve launched your merchandise, pay attention to how it sells and be prepared to make adjustments. If sales are slow, consider lowering prices or offering promotions. If items are selling out quickly, you might be able to increase prices or introduce premium options.
What to do:
- Monitor your sales and traffic data to see how your pricing is performing.
- Be willing to adjust prices based on demand and audience feedback.
5. Communicate Value
Whatever price you set, make sure you’re communicating the value of your product to your audience. High-quality products, exclusive designs, and limited availability all add value that justifies a higher price point. Your audience needs to understand why your merchandise is worth the price. This might seem obvious, but often creators never address this with their potential buyers. Creating value in a buyers mind creates the opportunity for higher valued products, which in turn means making more money for you. More perceived value = more profit.
What to do:
- Highlight the quality and uniqueness of your products in your promotions.
- Use social proof, such as fan testimonials or images, to reinforce the value.
Final Thoughts
Setting the right price for your merchandise is key to your success as a creator. By focusing on your desired profit, understanding your audience, and recognizing the unique value of your brand, you can find the sweet spot that maximizes both sales and profitability.
If you need help setting your prices or want advice tailored to your specific audience, we’re here to help. Reach out to us anytime—we’re excited to support you in making your merch a success!