I used to work retail at a gift shop a long time ago. Most of the products we sold weren't anything particularly high quality, but if we were having trouble selling something, we would raise the price and it would sell. Shoppers think a higher-priced item is worth more and that makes it more desierable (though in our case, the products were just made in China and the store owner would make us peel off the "Made in China" sticker, which I found out later was illegal.) The store was located in a strip mall that attracted affluent shoppers, so I think that was also part of the equation as well. The same phenomenon happens with taste tests--there's been experiments where cheap wine has beaten expensive wine in a taste test because the testers were told the cheap wine was expensive, so their brains played tricks on them and made them think the cheap wine tasted better. So much of retail is dependent on factors outside your product, like perception and consumer psychology.
This reminds me of a test someone once told me they did on Etsy. They made 20 identical necklaces and placed 10 of them up for sale for $25 + S&H and the other for $35 with free S&H ($10 was her average S&H cost). The $35 with free S&H sold out within a week while none of the $25 + S&H sold at all. So she discontinued the $25 listing and used its inventory to restock the $35 listing. Customers would have ended up shelling out the same amount of money for either listing but one of them came with free S&H and that’s what the customers cared about.
must update , im curious how it goes. i grew up really poor so i cant understand this at all. i read the product description's to get my moneys worth an only do sales so i cant imagine buying cute things at such a high price because priority is to save and minimize spending .
How would your price experiment compare with a similar product selling at a level price BUT with increasing sales? Your listing was NOT staying the same: it was gaining more sales of the product and probably more reviews, both of which increase the customer's perception of value, and (if you are selling on a platform), both of which also drive the platform's algorithm to show the product more often. (And if on your own site, there's SEO and whether anyone has put the product on Pinterest or posted on Fb or etc--all of which increase with longer time and previous sales.) >>>I imagine you are right about increasing prices leading to increasing sales, but you have proven far less than you imagine with your experiment, because you have not controlled for these confounding factors.
Great video & info thank you. My question is if your other items all stayed the same price, and this one randomly jumped prices (that's correct right?) How that worked? I would expect suspicion of the random highly priced necklace and also since it's the most expensive, based on what I've learnt from your previous videos, don't customers go for the middle priced item? Where was this one positioned if that made a difference? Thank you in advance
Question do you make a lot of money from your courses too? Asking for transparency since many claim they make all their money just from selling their art alone but then it turns out they have other income that they do not let their viewers know or try to sell the false illusion of a cozy small business owner.
Hi I am an artist who did mais course a few years back. 64% of my income comes from wholesale orders and 10% comes from helping others on patreon. I am writing my own course on how to use etsy but I am doing just fine without courses and patreon being my main income. Diversify as much as you can...teaching and courses is just one arm of your business that you could use....plenty get results without them. I am also looking into licensing my work and creating products out of them. there are many ways to go with it. if you look into mai she was a successful biz owner before she started her courses so shes not just grifting.
@@jackie_treehorn2736courses are iffy to an extent if your actually seeing results form clients. I personally don’t like them bc what most courses do is say what free RUclips videos have been saying for years, but to sell the illusion that they make money just from selling art is a scam.
@@scholas_creative_spaceright they have passive income from other sources but claim they ONLY sell art, like Kelsey Rodriguez, she got called out for always talking about how to make money as a ‘poor starving artist’ when she doesn’t even make money from art it’s from sponsorships. Now that she got called out she ‘changed’ her business plan.
I used to work retail at a gift shop a long time ago. Most of the products we sold weren't anything particularly high quality, but if we were having trouble selling something, we would raise the price and it would sell. Shoppers think a higher-priced item is worth more and that makes it more desierable (though in our case, the products were just made in China and the store owner would make us peel off the "Made in China" sticker, which I found out later was illegal.) The store was located in a strip mall that attracted affluent shoppers, so I think that was also part of the equation as well.
The same phenomenon happens with taste tests--there's been experiments where cheap wine has beaten expensive wine in a taste test because the testers were told the cheap wine was expensive, so their brains played tricks on them and made them think the cheap wine tasted better. So much of retail is dependent on factors outside your product, like perception and consumer psychology.
This reminds me of a test someone once told me they did on Etsy. They made 20 identical necklaces and placed 10 of them up for sale for $25 + S&H and the other for $35 with free S&H ($10 was her average S&H cost). The $35 with free S&H sold out within a week while none of the $25 + S&H sold at all. So she discontinued the $25 listing and used its inventory to restock the $35 listing. Customers would have ended up shelling out the same amount of money for either listing but one of them came with free S&H and that’s what the customers cared about.
Just raised all my enamel pin prices to $12, we’ll see how it goes!
must update , im curious how it goes. i grew up really poor so i cant understand this at all. i read the product description's to get my moneys worth an only do sales so i cant imagine buying cute things at such a high price because priority is to save and minimize spending .
Great tip; thanks! I also wanted to say I really appreciate the lack of distracting background music in this video.
Me too 😊
I love your edit of videos, may I ask what software you use? ❤
How would your price experiment compare with a similar product selling at a level price BUT with increasing sales? Your listing was NOT staying the same: it was gaining more sales of the product and probably more reviews, both of which increase the customer's perception of value, and (if you are selling on a platform), both of which also drive the platform's algorithm to show the product more often. (And if on your own site, there's SEO and whether anyone has put the product on Pinterest or posted on Fb or etc--all of which increase with longer time and previous sales.)
>>>I imagine you are right about increasing prices leading to increasing sales, but you have proven far less than you imagine with your experiment, because you have not controlled for these confounding factors.
Great video & info thank you. My question is if your other items all stayed the same price, and this one randomly jumped prices (that's correct right?) How that worked? I would expect suspicion of the random highly priced necklace and also since it's the most expensive, based on what I've learnt from your previous videos, don't customers go for the middle priced item? Where was this one positioned if that made a difference? Thank you in advance
It makes for a product that is already selling well. Does it work for products that don't sell as much?
Question do you make a lot of money from your courses too? Asking for transparency since many claim they make all their money just from selling their art alone but then it turns out they have other income that they do not let their viewers know or try to sell the false illusion of a cozy small business owner.
Most likely.
I also don't like when creators say they make money from their shop but they have a course and they earn from RUclips plus sponsorships
Hi I am an artist who did mais course a few years back. 64% of my income comes from wholesale orders and 10% comes from helping others on patreon. I am writing my own course on how to use etsy but I am doing just fine without courses and patreon being my main income. Diversify as much as you can...teaching and courses is just one arm of your business that you could use....plenty get results without them. I am also looking into licensing my work and creating products out of them. there are many ways to go with it. if you look into mai she was a successful biz owner before she started her courses so shes not just grifting.
@@jackie_treehorn2736courses are iffy to an extent if your actually seeing results form clients. I personally don’t like them bc what most courses do is say what free RUclips videos have been saying for years, but to sell the illusion that they make money just from selling art is a scam.
@@scholas_creative_spaceright they have passive income from other sources but claim they ONLY sell art, like Kelsey Rodriguez, she got called out for always talking about how to make money as a ‘poor starving artist’ when she doesn’t even make money from art it’s from sponsorships. Now that she got called out she ‘changed’ her business plan.
Excellent video!