Get a grip on finding a solution to improve your total earnings, and find out what customers are willing to pay for products and designs. Then make adjustments to your design pricing to keep those cash register bells chiming.
Changing the design price provides you with the ability to use it as a lever for cranking up sales. You can decide what you want to earn, and your customers decide if they want to pay for it. But what is fair, and what works best?
High prices don’t automatically mean more revenue. An analysis of all designs sold in our Marketplace has shown that almost 50% of all designs that actually sell cost between £2.00 and £3.99, closely followed by the £4.00 – £5.99 bracket coming in at 33% of sales. The £0 – £1.99 bracket accounts for roughly 11%. This means that any design over £6 finds it hard to be sold as these designs make up a mere 6% of sales. And if your design price breaks the £10 barrier, your sales chances shrink to a meagre 1%.
So, which design price works best? It depends on a combination of several factors: the kind of product, product price and design price should be in line. If you e.g. sell smaller items like hats or baby clothes, the design price should be lower than that of a personalised hoodie.
Another important factor to determine your design price is the technical execution of your design. Customers can usually tell what looks like a good effort and are willing to pay more for well-refined designs. A simple typography design should be priced at the lower end of the spectrum than detailed artwork.
When you introduce new products, we recommend an average design price of £2.00 – £3.00. It’s important to define rounded design prices that either end in .00 or .50 in order to to ensure recognizable prices ending in .99 or .49 (e.g. £18.99 or £17.49). The rounded design price will help you avoid ‘odd’ prices (i.e. £16.31 or £22.57) as these are not bound to generate trust.
What have you noticed when it comes to Marketplace/Shop placement and design price? Have you tried these or similar adjustments to see how you can stimulate a bigger buzz and more biz? We’d love to hear your observations in the comments.