Page 45 - MICROHUB Handbook - ENGLISH

Therefore, your pricing strategy is very

important to your ultimate revenues, and
has to be established with due consideration for:

· The market positioning of your product, for example, as a premium or

a budget one. Crafts, especially if they are unique or limited edition

pieces, could be priced at a higher, premium level.

· The level of market awareness of your craft in general, and interest in

your other products. For example, if you are just entering the market

and you still need to make a name for your craft, it might be opportune
to follow a penetration pricing approach, starting at a lower level, and

then increase it as the demand rises for your artisan products.

· Your lowest price point would need to be at least equal

to your unit cost per product, as below that you would

not only forego any profit but actually start making a loss.

· Beyond this lowest financial sustainable level,

your price point has to be also informed by how
much your target customers are currently paying

for alternative or substitute products, as well as

how much they would be willing to pay for the

additional value that your product is providing

compared to those.

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