Justifying your pricing to customers in a Big Box Store world

[Instinctive]

Not everyone is going to be your customer. 99.9% of the world will never know the difference between a crap piece of leather and good piece of leather, or the difference between machine stitched and hand stitched. Premium pricing does not come from "hand made".

So what are they buying?

It has been my experience that those that are buying a thing simply to hold their gun (or money, knife, etc.) mostly could care less about what kind of leather, burnished edges, hand stitching, etc. They just want to get the thing out of their hands and into something to hold it and don't care about what others think about it. They will most likely talk about what a "great deal" they got, not how great it looks, the quality, etc. Most likely not your customer unless you can (and want to) provide it.

I believe that people buy hand worked leather not because of what it does, but because of how it makes them feel when they are using it and wearing it and, more importantly, what other people say about when they see it. That is the value you need to need to deliver to the customer to command premium, hand worked, pricing. A Colt Peacemaker is like any other Peacemaker unless you put a fancy handle on it, chrome it or put it in a really nice holster.

One of the great questions I have had asked of me by a sales trainer years ago was "Why, given all the options available to me today, would I want to buy from you"?

There will always be something made cheaper by somebody, somewhere. Don't sell a $100 holster. Deliver a $100 feeling that will last your customer a lifetime. Those that understand that, will pay for it.

 

[cjartist]

5 minutes ago, WRLC said:

People buy hand worked leather not because of what it does, but because of how it makes them feel when they are using it and wearing it and, more importantly, what other people say about when they see it. That is the value you need to need to deliver to the customer to command premium, hand worked, pricing. A Colt Peacemaker is like any other Peacemaker unless you put a fancy handle on it, chrome it or put it in a really nice holster.

This right here is the secret to crack.  Pure gold. Every great marketer teaches this.  Putting it into practice is the difficult part.

[LumpenDoodle2]

I have a pair of winter socks I bought off ebay.    Apoarently, they were hand knitted by a grannie in Moscow, in pure Yack wool.   I bought them because they looked lovely and warm (and the grannie story tickled my liking of the slightly unusual).

If telling your 'service' history, or where the item is made floats your customer's boat, then fair enough, go for it.   But the thing that gets my money is (1) how the thing looks,  (2) quality for price  (3) What do other customers say. ( 4) can I justify to myself (or the hubby) the price asked.

Everything else is just advertising, and unless it is pertinant to the item (ie, leather used, advantage of that style/stitching/etc, or possibly the historic relevance of design), then it is just that, an attempt to convince the buyer that there is a 'justification' to the purchase other than the item itself.

Confidence in your product means telling the story of the item you have made, and after that, it's up to the customer.   If they like it, they will come back, and usually bring another customer with them.

I think what I'm trying to say here is, that you should stand by your product, your product shouldn't have to stand (or be supported) by you. 

 

 

 

Edited March 4, 2017 by LumpenDoodle2

[Tallbald]

I want to thank everyone here for the time they've invested in responding to my questions. I've read and re-read the comments and will digest them to see how I can utilize the strong points.

Below is a one-off belt bag project recently completed. A great deal of time was spent on this project to make it just as I envisioned. I priced it at $150, slightly above one of my holsters because of the additional time needed to craft it with the methods I chose. Target customer is the same category of person who willingly spends $75 on a well crafted billfold or small purse knowing that the purchase will last many years, develop a patina through time and should only need replacement due to loss or damage. It's not a Big Box Store item nor was it crafted to be such.

I am not a professional photographer. I must use a small digital camera and the best settings available to me. You see my description of this belt bag is lengthy, but the details are what I believe make my work worthwhile and set it apart from mass-made items. As an aside, my belts sell nicely at $75 for a two row stitched plain laminated one in the customers choice of color, thread and buckle, and my flap holsters have enjoyed a small following with significant praise given to the construction and execution.

"This is a roomy and versatile belt possibles bag made of 7-8 ounce Hermann Oak USA vegetable tanned, single layer cow hide. The leather is dip dyed mahogany both inside and outside, with black dyed mouth stiffener and closure tab. I used the wet forming method to craft the front panel, and as I do with my belts and holsters, it's double row stitched with heavy rot resistant nylon thread. Stitching is brown. Tabs at each side of the bag body fold in as the cover flap comes down over the body to close, and the center bar buckle is solid brass of quite heavy construction. Solid copper rivets secure the buckle to the body, and a copper rivet supplements the flap tab stitching. The single piece belt loop is double row sewn to the bag back panel, and accepts up to a 1 1/2 wide, thick belt.
The leather is finished with conditioner, two coats inside and outside of acrylic leather sealant, and a hand rubbed coat of carnuba creme wax.
Dimensions inside are approximately 1 1/2 inch front to back, 5 1/4 inch wide and 5 1/2 inches deep. The leather is stiff with a bit of flexibility.
A good deal of time in this bag, but it was time well spent I believe. $150.00 plus Priority Mail.
Thank you for looking. Don ".

 

[Tallbald]

21 hours ago, JLSleather said:

Both same leather, both okay-ish work, both come with a pretty story about how the maker is a disabled / transexual / single parent / ex-cop / veteran / etc...(this is not the whole list, just some of teh more common "lines" I hear). I'll assume there's something about your product you want to distract from.. and I'll buy from some third person who is selling me leather instead of selling me a story.

JLS I understand your comment here. I am reminded though of the J. Peterman Company in the Seinfeld series long ago. The focus of  marketing for the company was the intriguing back story that accompanied each cataloged product. Hugely funny premise to me and a true classic!

Often I see marketing of specialty items offering story details meant to set the tone for an item. A visual description will talk about how the item shall accompany the buyer in high adventure endeavors, and is I think geared toward armchair adventurers hoping to buy potential excitement and glamour. Yeah I'm medically disabled with a spinal injury that limits me a lot. But I don't use this as a part of my limited advertising. It's simply what I have to deal with and so be it.

Thanks for the comments and thought. Don.

[bikermutt07]

There is nothing wrong with a story. People enjoy being part of something. As a matter of fact, they are willing to pay for it.

The vast generic majority of people just want to make a purchase to make themselves feel good about something for a little while.

There is nothing wrong with capitalizing on that nature. This is business (If you're in business). Just help them feel good.

You are making nice products for a fair price, go ahead and give them the story. It gives them a more personal relationship with the product. They are more apt to buy the product if this is included in the price.

.02

[Boriqua]

6 hours ago, LumpenDoodle2 said:

I have a pair of winter socks I bought off ebay.    Apoarently, they were hand knitted by a grannie in Moscow, in pure Yack wool.   I bought them because they looked lovely and warm (and the grannie story tickled my liking of the slightly unusual).

Oh man that is a good one ... I am a sucker for a good back story and Yak wool socks knitted by a Grandma sitting on a stool in a yurt somewhere .. I would be owning me some socks right now and I live in Arizona. We dont even own long pants!! 

[Boriqua]

1 hour ago, Tallbald said:

I am not a professional photographer. I must use a small digital camera and the best settings available to me.

You can get better quality photos using a simple light tent. I posted one on the photography section and you can find HUNDREDS of different variations using different materials on the net and still use your simple camera. One of the things we are missing now is the in store experience. Any of you that were teens in the 60's and 70's remember what it was like when you walked into a leather shop. Man o man that smell. All the cool stuff hanging everywhere. It was most of what got me into doing this.

Now all we have is pix that compete with a thousand other pix and no sensory experience. Placing something you hold dear on a purple towel in bright sun doesn't help to tell your story and doesn't show me you value your work .. so why should I. Think about some props and a tent. Below is a not great pic. Kind of out of focus but I wanted a background that felt "expensive" and the black pebbled finish of my old portfolio kind of feels like that to me. Some Arizona plant matter and its half way interesting. Business is hard work and many fail and it has nothing to do with the product.

Sometimes I see guys that take pix on their dirty work bench with leather tools ... I think they are cool pix and say a bunch more than your towel. Perhaps a magazine cover depicting the old west. Try and thread your story through your pix.

here is another I took in a similar setup. Its Cheap to make. As a single business owner you have to be the photographer, marketing specialist, fabricator and dishwasher. Of course a better camera doesnt hurt but there is a lot you can do to make your stuff shine before investing in expensive equipment.

 

[cjartist]

1 hour ago, Tallbald said:

"This is a roomy and versatile belt possibles bag made of 7-8 ounce Hermann Oak USA vegetable tanned, single layer cow hide. The leather is dip dyed mahogany both inside and outside, with black dyed mouth stiffener and closure tab. I used the wet forming method to craft the front panel, and as I do with my belts and holsters, it's double row stitched with heavy rot resistant nylon thread. Stitching is brown. Tabs at each side of the bag body fold in as the cover flap comes down over the body to close, and the center bar buckle is solid brass of quite heavy construction. Solid copper rivets secure the buckle to the body, and a copper rivet supplements the flap tab stitching. The single piece belt loop is double row sewn to the bag back panel, and accepts up to a 1 1/2 wide, thick belt.
The leather is finished with conditioner, two coats inside and outside of acrylic leather sealant, and a hand rubbed coat of carnuba creme wax.
Dimensions inside are approximately 1 1/2 inch front to back, 5 1/4 inch wide and 5 1/2 inches deep. The leather is stiff with a bit of flexibility.
A good deal of time in this bag, but it was time well spent I believe. $150.00 plus Priority Mail.
Thank you for looking. Don ".

 

This right here should be handled slightly differently IMO.  Too much text that many will not read.  Pull out the highlights as bullet points.  Then follow that with some details about your methods for those that really want to know.

That last bit about "A good deal of time ..."  sounds to me like you are not comfortable with the pricing and are trying to justify it.

Nice looking bag, BTW.

[Tallbald]

Very helpful insights. I really appreciate the time in your answers. Yes, by mentioning the time I was essentially working to justify the price. I need to evolve.

I'm a retired Tool and Die maker and Registered Nurse used to specifically detailing processes, observations  and specifications in my documentation. My text probably reflects my career training and experience. Don.

Edited March 4, 2017 by Tallbald