How to hit a higher class market?

[helen123]

I own a website selling hand painted childrens furniture and gifts.
At the moment I am running the site with the lowest cost for my products I possibly can.
I sell on ebay which isnt exactly what I want for my business but it brings in the orders. I am in a really good position on google (or at least I think its a good position) on a UK search I am on the 1st page for most of my keywords.

My problem is a seem to be hitting the lower end of the market who want them for next to nothing (I know ebay doesnt help this!) and I want to be able to hit the higher class market. How would I go about this?

I cant sell in shops because my profit margin is so tight. I would like to be able to increase my prices so I can broaden my business by selling in shops but I dont want to loose all my business.

Business is good, but as you can understand there is only so many products I can paint in a day or week, so my profit margin is very important to make the business successful.

Any advice on my website, advertising anything really would be appreciated.

Thankyou

Helen

 

Take the gamble on ebay first and up your prices, if it has a cheap price on it people will think its nasty rubbish and they think thats what they are paying for, so they win as i am sure its actually good quality. Put your prices up and represent the quality of your product. If people think its quality they will buy it.

 

[welshnoonoo]

Hi Helen -

I think you hit the nail on the head when you said that selling on ebay does not help.

I think that I would look at what publications your target market reads and advertise in those, and I would also consider finding a PR agent who can get you some coverage in the National Glossy Womens' Mags.

I would also advise you to ensure that everything you communicate with in terms of literature, website etc, etc says "high class" as people will buy into the perception of it being "top end".

Unfortunately I guess that means a bigger marketing budget, but on the plus side, you could potentially get more money for your product!

I know it may be a bit of a shot in the dark, but perhaps you could send a product to a Celeb - you know what they are like, what one has they all want!

Hope that helps!

 

[SillyJokes]

You can try a higher price to increase the perceived value of your goods.

My main concern is that, with great respect, I don't think your furniture is all that special. The bunny and teddy design is nice but I'm not sure the rest of it doesn't look a bit like a lot of other designs.

Maybe you could create a very endearing and designer character range which people could collect and have personalised. That way various members of a family could chip in to buy the table and chairs.

Think of your next designs like a brand - look at tatty teddys and see if you can't come up with a identifyable logo/character that could actually be more covetable and desirable so people can say, "Yes, it's a Helen Broadhead original 'Mufti' Bear* table."

Other animals and names are available.

 

[sparklyscotty]

The bottom line is that this is often the unfortunate reality for a lot of crafter/ artists. So many people are caught between a lucrative hobby, and a failing business. If it is going to be a business, then you HAVE to charge enough to make your margins. If you want to be in high-end boutiques, then you have to charge high enough prices, pay the money to appear at trade shows, put the money out for advertising etc. and you HAVE to be sure that your product can command the price you need to charge.

Sorry to sound harsh, but I see so many people in the same predicament.

I design a lot of beautiful, elaborate pieces of jewellery that I can't sell to shops because the prices would be extortionate. I have to keep this in mind with every design that I make. It is either a hobby, personal, one-off piece or a sellable design that makes me and the shop money.

If you are lucky (or have a great PR, marketing team behind you) you can crack the market with a unique, high end product that everyone wants and is willing to pay money for, but for most people, it takes years of working up the 'food chain' so to speak before reaching that level.

I agree with Silly, that your chances of cracking that elite market are much higher if you can establish a brand, or unique style.

On a more positive note... have you tried raising your prices yet? You might be surprised. A few years ago I bumped into another jeweller at an event whose jewellery was similar to mine. She was only charging half of what I do becuase she didn't believe people would pay any higher... she was delighted when she realised that they bought more from me because the 'percieved value' was higher. Now she is selling for twice what she originally believed people would pay.

-Angel-

 

[helen123]

You can try a higher price to increase the perceived value of your goods.

My main concern is that, with great respect, I don't think your furniture is all that special. The bunny and teddy design is nice but I'm not sure the rest of it doesn't look a bit like a lot of other designs.

Maybe you could create a very endearing and designer character range which people could collect and have personalised. That way various members of a family could chip in to buy the table and chairs.

Think of your next designs like a brand - look at tatty teddys and see if you can't come up with a identifyable logo/character that could actually be more covetable and desirable so people can say, "Yes, it's a Helen Broadhead original 'Mufti' Bear* table."

Other animals and names are available.

Thankyou for this. This is something I have thought alot about- creating my 'own' range.
I think is somethig I need to consider more.
My fairies range, farm and jungle are the popular I do so maybe I should work on something like this.
I think then maybe if someone wants a customised set I could always charge more for this?

Thankyou for your ideas, I think I will give this more thought.

Helen

 

[helen123]

The bottom line is that this is often the unfortunate reality for a lot of crafter/ artists. So many people are caught between a lucrative hobby, and a failing business. If it is going to be a business, then you HAVE to charge enough to make your margins. If you want to be in high-end boutiques, then you have to charge high enough prices, pay the money to appear at trade shows, put the money out for advertising etc. and you HAVE to be sure that your product can command the price you need to charge.

Sorry to sound harsh, but I see so many people in the same predicament.

I design a lot of beautiful, elaborate pieces of jewellery that I can't sell to shops because the prices would be extortionate. I have to keep this in mind with every design that I make. It is either a hobby, personal, one-off piece or a sellable design that makes me and the shop money.

If you are lucky (or have a great PR, marketing team behind you) you can crack the market with a unique, high end product that everyone wants and is willing to pay money for, but for most people, it takes years of working up the 'food chain' so to speak before reaching that level.

I agree with Silly, that your chances of cracking that elite market are much higher if you can establish a brand, or unique style.

On a more positive note... have you tried raising your prices yet? You might be surprised. A few years ago I bumped into another jeweller at an event whose jewellery was similar to mine. She was only charging half of what I do becuase she didn't believe people would pay any higher... she was delighted when she realised that they bought more from me because the 'percieved value' was higher. Now she is selling for twice what she originally believed people would pay.

-Angel-

It doesnt sound harsh at all. I appreciate the feedback!
I do make a profit on my products but my concern is the amount I can actually make as an annual profit being that I can only paint so many products in a week. Unlike other retail sites that just package and send because my products take so much time.
So although do I make a profit I need to ensure I make enough to cover the amount f time as well. I hope that makes sense.
I wont be making a loss and I am very shocked how my business has grown in the time I have been doing this, but I want to try and hit a higher class market to therefore hopefully achieve better prices for my products.

I really appreciate the advice and I will be working on my style or brand. I do have popular ranges at the moment and I will work to extend these and become more unique.

Thankyou for your advice

Helen

 

[Poppy Design]

Hi Helen

You need to find your target market and then focus on that market.

I agree with others - there is certainly nothing wrong with selling on Ebay, and in fact it works very well for some, but people expect goods at a very very low price - not so good when these goods have been handpainted with the time and effort/skill that has gone into them - I don't bother with my canvases.

You need to sell your USP (unique selling point which in your case is hand painted bespoke furniture/gifts) - try quality craft, charity (the type in large country houses for well off womens) fairs - do some PR to the more upmarket lifestyle magazines such as House & Garden etc

For my canvas art, I have been told a few times that my prices are too expensive - I do not think so - yes sure I am not offering an original Picasso but I am offering something contemporary and which is produced in small numbers - to be honest my prices are similar to say Next etc and I can guarantee that my canvases will not be in 20,000 homes (unfortunately)!

Good luck & keep focused!

J

 

[welshnoonoo]

I really like the "create a brand/range" idea - look at Emma Bridgewater - it worked for her and I am sure there are a few other people we could name who have done a similar thing.

 

[She Says]

I am just agreeing with what has already been suggested-create and promote your own special range and put your prices up! We have never apologised for our prices despite the fact you can get cheaper elsewhere, but at the same time our prices reflect the quality and our customers realise this. I think there will be people who are prepared to pay alot more for the perceived value; items that will become family heirlooms!

Sharon xx

 

[Matt1959]

I know Ebay has the reputation for cheap goods but does this argument automatically apply to EVERYTHING put on Ebay? Ebay is also a huge market place - where else can you get such exposure for products for the money spent? So long as a bespoke product is listed in the right way, with the right ME page and a link to the right sort of website, could it still not be a success? I guess the sure way of finding out, is to list items for a month or so at a higher price and see how much profit is made (thats profit not number of items sold)

 

[bitsnstuff]

Hi,

My suggestion would be to get a range of transfers of your designs produced, so that you can quickly paint and transfer the furniture. This would give you a cheaper range which you can still sell on Ebay for a lower price, but making profit and would be able to up the production numbers.

Then, you produce an exclusive hand painted, personalised range, which have higher prices to project the quality etc. and you market those to shop and do not sell them on Ebay.

That way you can hopefully have the best of both worlds. Also the transfers could be made in a variety of sizes to be applied to matching accessories for example.

Kate