The 1 Minute 'Reverse Pricing' Strategy That Doubled My Store Sales

[@clairebishop9835]

A friend of mine was told her water colour paintings were priced too cheaply. She was unconvinced but just for one week, doubled her prices and guess what? She sold more. She was told that folk feel happier buying art that costs more as it has a touch of ‘snob value.’

[@melsky]

If you sell prints of your work you can sell the originals for more. I think that appeals to people because they like the idea that they’re owning the original when other people are buying cheap copies of it.

[@CreativeHiveCo]

That's awesome! Thank you for sharing!

[@PhilLesh69]

People mindlessly mis-associate higher prices with higher value. It's like commercial software versus open source. I know people whose sole basis for using Windows or MarCOs is that the equally functional and even more powerful free Linux operating system doesn't cost anything so it must not be very good.

[@Marynicole830]

That makes me sad. Because I’m broke but love art 😂 I am glad the artist is getting paid though. So It’s a bittersweet feeling lol. They deserve it, artists have historically always been underpaid except for a lucky few who everyone seems to think is the norm. I’ve always wanted to create something but have disgraphia so anything to do with drawing, painting, or writing is out. It’s like I can’t get what’s in my head down on paper (or keyboard) and it’s super frustrating. Finally got diagnosed after seeing the term online and asking about it to my therapist and doctor.

[@peterburns9861]

@@Marynicole830 You might be able to do something with AI image creation....

[@AezlyndWanderin]

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.

[@salima1777]

Etsy is less likely to push products with shipping separate from the price and they've have been doing that for a few years

[@AezlyndWanderin]

@@salima1777 that makes sense and it means that if you determine that shipping should be separate you need to push the product yourself .

[@manuelrivera6778]

@@AezlyndWanderinit could also be that customers prefer to meet their needs with less problems. They want what they want asap.

[@AezlyndWanderin]

@@manuelrivera6778 true but free shipping doesn’t necessarily speed up anything.

[@thenoodlebuddy]

I think it's the element that something is free, but also the element that it is just simpler, it's annoying having to work out the price and then the shipping etc. just give me one price for everything and I'll decide if I think that's fair or not

[@ToBeeOrNotToBeHoney]

Very well done video. I am a beekeeper and we have a similar problem with beekeepers rushing to lower their prices and harming their own businesses. My group started charging "What we felt the product is worth" last year and were very surprised to see that people are actually ready to pay a higher prices knowing the Honey is locally and ethically harvested by beekeepers who are more concerned with the health of our bees and less concerned about competing on price. We have sold honey at venues where other keepers were selling for much less, and people were more interested in buying from us once they heard our story and why we felt our product is worth the price. We never bad mouth the competition, and when people complain about our prices, we actually refer them to the booth with lower prices with a smile. Stand by your value, Value your self and your product and others will also.

[@Somewhere-In-AZ]

One of my friends is a beekeeper. Lower prices means the honey is probably mixed with something cheaper. He charges a very high price because his honey is pure. People pay, so it works for him. 😊

[@CreativeHiveCo]

Thank you so much for watching!

[@sebastianbass946]

I don’t know if it’d be overkill, but I’d be willing to pay up to roughly $30 for a pint or $50 for a quart of 100% real local honey.

[@ToBeeOrNotToBeHoney]

​@@sebastianbass946 We sell jars locally for $44 that are slightly more than a pound of honey net weight. For some of my honey (different brand) I have been selling for $2/oz and having no problem. We spend a lot of time talking with our customers and letting them taste several honeys side by side (we have several apiaries located in different micro climates, and we harvest after several different flows). People also forget that inflation definitely impacts beekeepers since Hives are not cheap to run.

[@jasminel1547]

Very sound advice! I know someone who started a custom wedding dress and bridal alteration business. She initially priced her work based on the hourly amount she wanted to make and wasn’t getting business. Potential customers were suspicious because her prices seemed too good to be true, especially when compared with off-the-rack wedding dress companies. She raised her prices and immediately started booking jobs - no other changes needed.

[@CreativeHiveCo]

Thank you for watching and for sharing that! Proof that it really works!

[@kirbyourenthusiasm]

YES!!! My husband was told by his mentor who is a multimillionaire businessman: raise your prices. His explanation was that he wanted my husband to be available to do the work he needed and if my husband wasn’t charging enough, he would wind up going out of business and not be available in the future.

[@CreativeHiveCo]

Thank you for watcjing and for sharing your experience!

[@PhilLesh69]

Now do anchoring. Take 3 similar items. Price the one with zero options or features low, price your most profitable version at a mid price and then offer a crazy option filled top model and price it higher to make the mid-priced item seem like a bargain.

[@PhilLesh69]

That's how appliance sales work

[@CreativeHiveCo]

Thank you for sharing this!

[@Lissbirds]

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.

[@SunshineCatwoman]

I've always found that attitude (things that cost more being perceived as better) to be incredibly stupid. But hey, if people have money to burn and don't mind wasting it, so much the better for merchants. Personally, I prefer a good bargain.

[@Lissbirds]

@@SunshineCatwoman Oh, I agree for when I got shopping myself. But some people like to throw their money around lol.

[@CreativeHiveCo]

Understanding how psychology plays into shopping habits can definitely be a game changer for retailers!

[@sarahmanalapan8443]

I think you may be mis interpreting that wine study. It was blind and yes people scored wines that wore marked as being more expensive as better. The extra detail of them rating cheaper wine better wasnt really the point nor do I remember if this was cited as actually hapening. Point is we tend to assume as consumers price = quality an it dosent.

[@aresorum]

Interesting story!

[@Anthromod]

Yes the Veblen effect. I do find it hard to judge how much something should be worth when you can see the price of the elements that make it up. Have to hammer into my brain that the skills learned in order to make it are one of the places the value comes from.

[@return2sender791]

People seem to be coming around to the idea that handmade things are worth more than what it cost in materials. Pretty tired of hearing "that only cost 10 bucks to make!" Yeah well how about the 10 years it took me to really know what Im doing? Or the 6 hours it took me to actually make it? Hahaha. A LOT of people really do not appreciate any of that.

[@CreativeHiveCo]

Absolutely! Those handmade pieces have a story and a unique touch that you just can’t get from mass-produced stuff. Just a little reminder that all that time and effort really adds to the worth! Thanks for sharing your thoughts!

[@battyjr]

As a musician, most customers (venues) seem to be interested in price -- if not price alone, then price primarily. Many bands will play for nothing, or basically pay a rent to the bar based on how many heads are brought in. In order to raise awareness of the value musicians bring to establishments (that call themselves MUSIC venues) I've been trying to promote class consciousness. We're constantly undercutting each other, and undermining ourselves. But the American Federation of Musicians is growing, and I'm proud to be a part of it now! :)

[@MickTee2k]

It sounds like the general public thinks your products are worth more than than you do. A great instructional on how to find the true value of your art.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@Dawnshadow]

I work in corporate retail. You just discovered why most stores price at $x.99 (or $x.x9.) Most people will round down instead of up, so even though the straight $x.00 is more honest, it feels like you're not spending as much when you take off that penny. The next trick if you need to drum up more sales-- if x is your normal retail, set a collection of goods at 2 for $2x or 3 for $3x (so it would be 2 for $99 at your $49.99 price point-- drop the cents for combo deals.) Even if you don't offer a significant discount for buying in sets, you'll encourage some people to buy 2 or 3 even though the per unit cost doesn't really change. If you add on a small discount (say it's $49.99 each or 2 for $90) you'll see a lot more people spend $40 more so they can save $5 per necklace.

[@CreativeHiveCo]

Thank you so much for watching and sharing your thoughts!

[@BS-detector]

That's a great strategy if you find that some things aren't selling and you need to make room for the newer things.

[@isabellelim2573]

I’ve never once round down lmao. I always round up cause I example $7.99 I need to give my $8 away. 🥲🥲🥲 and then get back that 1 cent that I’m never gonna use

[@xdani_thethinkingneko]

I started do that and it is wild how many more sales I make! That .99 really makes a difference for some reason!

[@TheOGJeff]

Ew

[@sstorholm]

There’s even a further point, you could push the price even higher to lower sales intentionally to decrease pressure on your manufacturing chain without hurting your bottom line. Essentially you lower demand to the point you can keep up so quality of product and service doesn’t suffer. Essentially a reverse sale to manage to keep inventory in stock. 😂

[@CreativeHiveCo]

Thank you for sharing your thoughts!

[@furthings]

I did this with one of my Etsy listings because they were selling to fast for me and people kept buying :') This is how I accidentally discovered the pricing trick mentioned in the video. Now I have a disclaimer at the top of my TOS clarifying prices will fluctuate based on how much I want to work because I still feel bad seemingly raising prices "arbitrarily" but am going to still do it because I want to do this for a living

[@piperpanda6587]

​@@furthingsDon't feel bad. People who are price conscious use sites like Honey, and repeat customers have probably figured out you do this and they will wait for prices to lower again if they want to buy. Supply and demand mean people only pay what they are willing to pay for your product. If you price too high no one will buy, but if you price higher then you're willing to sell and people still buy, that's because they thought it was still worth it for your work. Heck the fact you fluctuate down again when you feel more motivated is really kind of you XD

[@GameOn0827]

Only if you're comfortable with the current size of your business. Most people want growth, so it's better to find ways to meet increased demand than to intentionally lower demand in exchange for a higher margin.

[@ninakheldar]

Another thing I learnt very early in my career is -> not everyone is poor or has the same point of view :D It is funny, but I was selling expensive luxury dermatology products while being poor 20 yo student myself and couldn't understand how anyone can spend so much on one product. I was giving a lot of discounts and doing poor sales because I felt bad that those cosmetics were so expensive and felt kind of ashamed? like I was scamming people (those were good products, so def no). My colleague had to do me a lecture about who is our client (not another poor student but usually wealthier and older woman who WANTS to spend their money). Even if they are not so wealthy, they're here to buy something and feel they invested in themselves, they're taking care of themselves etc. One client also once said to me that she knows all the things she supposed to do but she's a busy lawyer and she doesn't have time so she wants to buy something for her to do it :D It changed my perspective.

[@CreativeHiveCo]

Thank you for watching and sharing your experience!

[@YeshuaIsTheTruth]

As a residential painter, I totally understand. I've done work for $300 that would have been a deal for the customer even at $900.

[@ninakheldar]

It's totally true for me. I often get suspicious if something handmade is priced too low. But I do a lot of things myself so I know how much time and effort goes into art and crafts. Many people are buying art for gifts and then they are ready to spend more. Also, I think it is good to see your products as 'luxury' goods. Handmade goods like jewelry, cute stationary, decorative things etc. are not necessity so you don't have to feel like you're robbing people. They want to buy something so it might as well be from you :)

[@CreativeHiveCo]

I totally agree! Thank you for watching and sharing your thoughts!

[@cdarklock]

Something to remember about any product: you are not your customer. You can tell, because you MADE the thing your customer wants to BUY. If your customer was you, they would just make it themselves. They don't, because they're NOT you. They do not know how to make it themselves. They do not have friends who can teach them how to make it, or who can make one for them. The people you are selling to NEED to buy what you are selling, because that is the ONLY way they can get it. It's not about the tradeoff YOU would be making to buy it instead of make it - your customer's tradeoff is to not only choose to make it, but find a way they can learn how to make it, and invest all the time and energy and effort necessary to do the learning. It's not about YOUR two or three hours of labour. It's about your customer's two or three MONTHS of labour.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts

[@BS-detector]

When typical consumers try to make things themselves they quickly learn the real value of it, so for those who can't (or won't) make anything they are happy to pay.

[@cdarklock]

@@BS-detector And when you look at people's attitudes toward intellectual property, you can tell real quick whether they have ever made anything worth buying

[@kristinunpoisoned]

Great tip; thanks! I also wanted to say I really appreciate the lack of distracting background music in this video.

[@mellomakes]

Me too 😊

[@CreativeHiveCo]

Thank you for watching!

[@EdwinMaarleveld]

Yes! Thank you for mentioning this! So I'm not the only one that doesn't like that.

[@eveadame1059]

​@@CreativeHiveCo 🌹🌿 Thank you! I needed this pricing reassurance on something that I was considering selling.

[@alcyonae]

There are still sound effects, meaning there is a lot of effort and curated intention

[@oddtreepress420]

Raising my prices was one of the best things I ever did to my shop. I almost immediately started getting more customers. When it comes to unique items, anyone who is willing to invest in the time, tools & materials to make said items themselves is not your target customer anyway.

[@CreativeHiveCo]

Awesome! Thank you for sharing your experience!

[@ianglenn2821]

I do taxes for a local CSA (basically a local farmer delivers vegetables to people once a week) and they recently switched to a "pay what you can" sliding scale with a suggested price range, actually generates more total income than giving one single price, and then both rich people and poor people can get fresh veggies, seems win/win in certain scenarios

[@thatonellamawhoissoobsesse8138]

Certain video game websites scratch that same itch

[@CreativeHiveCo]

That's such a fantastic approach, and it’s great to hear that it’s working so well for your local CSA!

[@auntieheksold-timemedicine3045]

Perceived value is a huge, huge factor in sales (often... not always.) I launched my career as an indie author by charging MORE for my ebooks than other indie authors were charging. My books sold so well that I quit my day job to write full-time in a little more than a year, and then I bought a house! All because I played on the psychological quirk of perceived value by pricing about 2x what most others in my genre were selling their books for.

[@CreativeHiveCo]

Awesome! Thank you so much for sharing your experience!

[@schoo9256]

As a writer scared about the wild west of indie publishing... thank you for sharing. Little by little I'm learning it's not as scary as it seems. What name do you sell books under, I'll look you up:)

[@JaneNewAuthor]

I'm doing the same. A lot of people in my genre sell for 99c. Mine are $2.99.

[@TheDreamer1098]

This is called "price inelasticity of demand", in case you wanted the economics term for it.

[@CreativeHiveCo]

Thank you for watching!

[@blaireshoe8738]

Not sure how I got here, but it was an interesting listen! The fact that it is not remotely relevant to me (as I'm neither a maker nor a seller, rarely even a buyer 😂) will not stop me from watching more of these, ON TO THE NEXT!

[@CreativeHiveCo]

Oh wow! Thank you so much for watching!

[@ECGgroup]

This isn't reverse pricing strategy. This is just split testing quantity demanded. Reverse pricing strategy is where your customers decide how much they want to pay and you as the seller decide if you want to accept the offer or not.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@maryhardy6468]

@@CreativeHiveCoclassy response

[@BobbyBattista]

@@maryhardy6468 I'm unsure if you're being sarcastic here. I do think that a classy response would include acknowledging what someone wrote, and to me this "thank you for sharing" could easily occur as insincere or even smarmy. To be fair, ECGgroup could have done a better job of appreciating the good things about the original video, while providing the feedback that they misused the term "reverse pricing" and ended up with a misleading title - which was likely unintentional and based on an honest misunderstanding. I think both could have done a better job of communicating, and that regardless of classiness, thoughtful discourse would be a good thing to aim for.

[@WerewolfofEpicness]

​@@BobbyBattistaShe posted the same comment on every comment. I don't think she actually read these, could be a bot

[@warriormamma8098]

I was going to list an item free vs drop at a thrift store (I don’t have an online shop or sell anything I make but sometimes sell things like games the kids outgrew or sheets we don’t use for a guest bed etc) instead on the free listing I wrote cash donations gladly accepted and someone left $10 under my door mat for something my husband wanted to toss out! I am always saving stuff from the road and taking to donate to thrift shops.

[@Scarybug]

This might not just be a psychological quirk that people think your product is higher quality if it's more expensive. If you buy a lot online you inevitably run into scams where the thing you get looks substantially worse than the advertised product. Those usually occur with to-good-to-be-true prices. Pricing crafts higher is a good indicator that you'll be getting the real thing.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@siyano]

that the problem, price IS NOT an indicator! NEVER should it be, using due diligence should be a primary check above ALL thing, first is easy, is this product just a alie express rip off by using revere image search. then from there you can try and check more info.

[@AAZFortnite]

Which is in turn a psychological quirk?

[@CharacterDesignForge]

Just raised all my enamel pin prices to $12, we’ll see how it goes!

[@silverbeast730]

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 .

[@FoundationForFamilyFreedom]

I would do $20 flat with free shipping and handling ❤

[@AB-ws4kt]

⁠@@silverbeast730I grew up poor too, so I get it. But I can see how the rich have the privilege to buy art, and often to them a higher price means higher value. I worked at a club with a few high rollers and you could always hear them bragging about how much something cost - which is an extreme but think about it. Would you be more or less likely to say, throw something away, if it cost you more? Usually you’d hold onto that thing cause it cost you so much, so yeah it does then mean more in a weird way.

[@littlefox_100]

This feels like seeing your teacher at Walmart. Your my favorite character design/ cartooning youtuber!

[@CharacterDesignForge]

@@littlefox_100 Hey thanks!

[@miowacity]

There is some validity to raising prices actually increase sales. A study was done a long time ago (1960s) where they sold a flash light for 50 cents at one place and the same flashlight for a dollar at another. Th $1 ones were by far the better seller because people perceived a better quality because of the higher price. So the point is don't race to the bottom and don't go way too high but they to find the correct price. For artsy things people aren't value shopping but shopping fir what they can afford.

[@CreativeHiveCo]

Thank you for watching!

[@zeroshepard9513]

Uggs are a native style boot that has been around since forever. They were available for 35 bucks from various brands, but when they went to 300 bucks they became an obsession.

[@CreativeHiveCo]

Absolutely! It's interesting how Uggs evolved from being a practical, affordable boot to a high-priced fashion item. The way they were marketed as a luxury product really changed people’s perception, and it created that obsession around them.

[@JaneNewAuthor]

For those of us who have been wearing them forever, it's really annoying!

[@brotherbruns2989]

Your video popped up on my feed, I clicked it because of the snow cone colors. After watching your video, your video just validated how I set up pricing for a business moments ago. Thank you and God Bless!

[@CreativeHiveCo]

Awesome! Thank you for watching!

[@jennajacobs3700]

It makes for a product that is already selling well. Does it work for products that don't sell as much?

[@CreativeHiveCo]

YES!!! 😊

[@shoiku4734]

When I sold physical items, I would price down and up and down depending on my mood & Luck. Pricing is not necessarily the only thing that gets an item sold. I would drop to the lowest price and wait, then shoot it up and wait. From people who ask for discounts, it then became easy to set a more favorable price that's also higher than my lowest price.

[@CreativeHiveCo]

Thank you for watching and for sharing your experience!

[@Rinadarl]

Even the pitch to join your creative nerdy club was curated so that we feel its value for joining🤣🤣well done!

[@CreativeHiveCo]

Thank you for watching!

[@elchicousana2]

One of the greatest videos about pricing I've ever seen for the last 10 years. You are awesome I congratulate you please keep on with this kind of content you are a top queen!!!! 🥰

[@CreativeHiveCo]

Aw, thank you! I'm so happy you found it useful. 🥰

[@Axiomatic75]

I observed the same when I ran a hostel in Thailand. My dorms were quite cheap (under $4 per night), not the cheapest option in the city but close to it. When I raised prices, I actually got more bookings. People were worried they'd be staying in a horrible place if they paid that little.

[@CreativeHiveCo]

Thank you for watching and sharing your experience!

[@C4ptBlu3]

What you described is basically the law of supply and demand. Here in Germany, if you study something economical or sales related, its the first thing they teach you, kinda the economics 101. There is more psychological effects happening why people buy stuff when its higher price, but you also described that with the perceived value. A higher price will also give the impression that the product is higher quality, no matter if it sold before on lower price. Keep it up, wish you all the best for you business!

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@DaryaUliceva]

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

[@ChickenGoogleSoup]

I'm a digital artist. I make 3D models and sell them on my Gumroad. I make niche avatars. What i mean by that is, i make avatar models that are unconventional, and unique. Not generic humans. I value my work a lot higher than what i sell it for, and the competition sells their models for less than $20 on all their stuff. A lot of people don't buy my work. I charge a bit higher than the rest, but i might raise my prices thanks to this video!! I think it could be that i don't advertise enough too, but i feel like rasing my prices could help.

[@CreativeHiveCo]

Sometimes, pricing higher can actually attract the right customers who appreciate and value the uniqueness of what you’re offering. It also sets you apart from the competition who might be underpricing. That said, it’s true that marketing plays a huge role too-getting your work in front of the right audience who values originality is key. So, combining better pricing with more visibility could really boost your sales! Thank you for watching!

[@Angel...............]

I have kinda noticed that straight up unwavering confidence can break any expectations, like way beyond what you´d expect. So this way of pricing does make sense with that idea, confidence in the predict and your time etc. I have also heard people say that sometimes a higher price can attract higher quality costumers because those who are willing to pay more obviously don't focus on affordability and are willing to pay more for the quality etc.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@joidss]

I don't run a business or study economy/psychology/marketing in general, but this is really interesting and useful information to me, especially as an artist who has been wanting to take commissions for years. I often did requests for friends etc. without getting paid because I just have no idea how I should price my work! I'm extremely fast at drawing, so I often feel like it's not worth as much as someone who would be working a week on it for the same quality ...

[@CreativeHiveCo]

Thank you so much for watching and sharing your thoughts!

[@SewHealthy8]

You could also occasionally have a sale for $48 edit: & still be $20 adhered per unit! I also agree that pricing things too cheaply makes them appear cheap! Not everyone wants cheap things. Some people are quite happy to pay for quality. & also in your case would understand they are handmade items which naturally adds value & cost. Fabulous video

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@happiestplace3754]

I've been a maker and selling my own products for years, and I've also been in retail for 30 years. To this day, I'm amazed how the .99 price works on people. When I see something $9.99, I automatically just say it's $10. But, if you sign a product as $10 vs. $9.99, it will sell better at the 9.99. You are so right that the public at large doesn't think the same way we do, and we need to stop underselling our items and our time.

[@CreativeHiveCo]

Thank you so much for watching and sharing your thoughts!

[@done.6191]

price is linked to quality in most people’s eyes. I won’t ever buy the cheapest item. From experience, I know that the cheapest item is false economy. But I usually won’t buy the highest price either, because of diminishing returns. So it’s usually the one in the middle that’s the winner.

[@CreativeHiveCo]

Good point! Thank you so much for watching and sharing your thoughts!

[@lokolb]

Talking 10 Minutes about a 1 minute strategy, a true artist

[@CreativeHiveCo]

Thank you for watching!

[@edieandmemiller4649]

This is an overall assumption based on one item's sales, but you did give the caveat that quality matters. I'd like to see this experiment repeated on several different items to see if the outcomes are the same. Also, this was an item that was already selling well. I agree that it's worth a try to see how it goes, but also no guarantee since there are so many factors to consider. I'd like to see this experiment repeated on several different items to see if the outcomes are the same. Overall, great thinking and experimenting. Thanks for sharing!

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@evonne315]

Maybe some people actually want to pay what something is worth. They feel like they are being fair and supporting a better buisness (like sweatshop free, more environmental, and so on). If its local you may wanna pay more. Its very cultural the reasons and at least for me its not any kind of status or snobbery that I want to pay more. Some of us are trying to be supportive to a better world.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts on this!

[@leorivas]

I think the formula is simpler. You have to sell at the highest customers are willing to pay for it. The price experiment reaching $49.99 was very clever to find that point.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@sirtra]

How do you know it's not just organic growth? Like you hit the peak at $49.99 but did you go back down to 45? Then 40? Only if you then saw sales drop again can you scientifically say the primary factor was the higher price. If sales kept increasing going back down the scale the primary cause is something else.

[@__christopher__]

From the video, she did saw a drop at 50, and then went back to 45 before trying 49.99. I don't think she would have tried 49.99 if going back to 45 had not increased her sales again. That going down at 50 speaks against it being just the effect of organic growth.

[@4nbop80user]

There may also be the element of a budget set aside for a present. If that’s generally 50, many people will look for items that cost 50. 35 and less will rule it out of the option list.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@mkorpalart]

I love your edit of videos, may I ask what software you use? ❤

[@Aoedam]

People who watch the item may see the price increasing, so they opt to buy it before the price increases more. This may account for a small portion of the sales probably.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@kevin-haggerty]

Great value of info here. Frome someone about to start selling 3D printed files, items,tools,etc. This is as good as it gets and this definitely works!

[@CreativeHiveCo]

Glad you enjoyed it! Thank you for watching!

[@ThisICommand666]

Great video. I was told this last weekend my self-published books were priced too low. Seeing this made me wonder if raising prices a little bit won't hurt sales too much at future shows.

[@CreativeHiveCo]

Thank you for watching!

[@Alresu]

Adding a soundeffect to each new detail is fine and might even be helpful for some, but I suggest not using something that sounds like a phone or computer notification. I for one felt pretty stressed out by them. Otherwise great video!

[@CreativeHiveCo]

Thank you for your suggestion!

[@maletu]

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.

[@bluebrightstar1117]

Exactly what I came here to say !! I'd also like to add that if she already had a dedicated customer base & big following, ofc her sales wouldn't drop, but me for example who barely makes 2 sales a month (ko-fi, I don't have access to sell on Etsy) I'm sure it will make things even worse if I raised my prices

[@maletu]

@@bluebrightstar1117 Well, she had lots more "cushioning factors." Still--there are those stories of people who, half-way through an art show with NO sales yet, double or tripled their prices--and sold out. Too-low prices CAN be a barrier. Is there a way you can try higher prices on some new channel, away from your current sales?

[@bluebrightstar1117]

@@maletu i can attempt it when I do keychains pre-orders !

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@ViniciusJorgeMunhoz]

are your customers all from the US or Europe? because even the lowest price at $25 would be considerable high for someone in Brazil. I would like to know if you has the data of customers from other countries, and if the sales from those countries dropped when you increased the price. If so, I understand that your product sells better for a different demographic. Really cool video and nice explanations! thanks for your time on doing it

[@devinoverman7497]

This is a question I've had before, as well. I've heard this theory a ton, but I wonder how much of it is affected by the society. The specific numbers will change, of course, but I'm unsure if the overall psychology of pricing works the same in all markets. I feel like the answer is no, but not for any research-backed reason.

[@ninakheldar]

Good point. You can be right that sales are going up or the same but the demographic changes. It's interesting! My boyfriend spent 25 euros on a necklace for me on the last trip in Finland and I still have shivers because for us in our country in our currency that's a lot. It is a souvenir etc, but god, it is a lot. Honestly, this whole trip was more expensive than expected, don't want to think about it :d

[@CreativeHiveCo]

Most of my customers are actually from the US, which is why my pricing might seem more aligned with that market. Thank you for watching!

[@jayknowles2146]

I think this has to do with the misconception that price is directly tied to cost, and by high price one can infer high cost = high quality, and the inverse for low price, when it is possible it is low price, but has decent value. Or as the average person knows it, too good to be true, it probably is.

[@CreativeHiveCo]

Thank you for watching!

[@Jeanines_Randomness]

This entire video motivated me to subscribe & makes me want to sign up for the club and free workshop. Amazing job!! 👏🏼

[@CreativeHiveCo]

Yay! Thank you!

[@jademonass2954]

loved the tips you gave on this video, but damn, i might just be way too out of the loop on how the economy works in the US (as a 3rd world country), but a week's worth of salary for a single miniature is just insane to me

[@CreativeHiveCo]

Thank you for watching and for sharing your perspective! Pricing can definitely feel surprising, especially when comparing different economies. In the US, handmade items often reflect the cost of materials, time, and living expenses, which can be quite high. That said, it’s always about finding the right audience who values and can afford that craftsmanship. I appreciate your insight-it’s a reminder of how varied perspectives are across the world!

[@RayShine879]

I would most definitely buy the more expensive and unique item on something like Etsy because I expect higher quality and longer wait time. I can’t say the same for Amazon tho useless it’s Amazon handmade but it can hard to differentiate the handmade vs drop shipping, print on demand, and resells on there.

[@MaskedReviews]

Be careful. Etsy has all the same problems now.

[@RayShine879]

@@MaskedReviews great point! I’ve seen some sus products on there mostly like AI, but I only like to shop from real artist who have a website or social link to their other stuff showing their process.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@estycki]

If you're listing on a website like Amazon or Etsy that take a chunk of your sale, then they'll push your product a tad higher up so the platform gets a little bit more pie. Also if people are seeing your prices are going up, they'll buy before it goes any higher - kind of like buying a house before they get even more expensive.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@patsymutiso]

I see the race to the bottom with people who sell crochet amigurumi at markets. They think it's fine because they don't treat this as a business. I think this hurts the business owner who also sells at markets.

[@CreativeHiveCo]

I totally get what you mean! It can be tough when some sellers don't see the value in their work and end up underpricing. It really does affect everyone trying to run a sustainable business. Quality and fair pricing matter, and we all deserve to be recognized for our hard work!

[@strangerdaysss]

5:00 can you show detail proofs next time. it'd help a lot. ty.

[@CreativeHiveCo]

Thank you for watching!

[@calvinthedestroyer]

Where did you get that rainbow colored organizer?

[@sllkevin8885]

Clicked for snow cone as a gift… At $40, or $45 since it seems to be popular, I’d probably have added a $30 one along with it… but $50 is more than I want to gift, especially since you mentioned it was worth $28. Looks quality though 👍

[@CreativeHiveCo]

Thank you for watching!

[@patticake5311]

Interesting video. Do you know if your traffic to your snow cone necklace Etsy page remained the same or changed during your experiment? I was wondering if Etsy lists items higher if you change the item's price. Also I've had Google improve page listings when prices or other things are changed, which is why I asked about traffic. Thanks!

[@polinamachold8465]

What a great channel, clear information and to the point. Thank you!

[@CreativeHiveCo]

Thanks for watching!

[@colinyoung3685]

Peloton is a great case study for this phenomena.

[@CreativeHiveCo]

Thank you for watching!

[@TheeLynnChase]

Your food pendants are SO CUTE!!! I work on RE, and surprisingly, that mentality for pricing works the same way.

[@CreativeHiveCo]

Thank you!

[@dylaninthemovies]

I don't want to dismiss what you are saying, but I just want to point out that another potential factor for the increase of sales could be the algorithm of the site you are on choosing to show and promote products based on any number of other possible factors. Again, that is not to discount what you are saying, just to point out another variable to take into consideration.

[@CreativeHiveCo]

I appreciate you sharing your insights! Thank you for watching!

[@sofianavarrete1311]

Your presentation is great, thank you.

[@CreativeHiveCo]

Thank you for watching!

[@morehn]

I think this works for a differentiated product, like you said here

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@PleiadianSister]

fascinating. thank you for sharing!

[@CreativeHiveCo]

Thank you for watching!

[@marcelbricman]

i believe this is in part due to giftability of a product. people will look for gifts in the 40-70 $ range. 10 would feel cheap

[@CreativeHiveCo]

Good point! Thank you for watching and sharing your insight!

[@BobbyBattista]

I'm curious to know what your thoughts are on quality vs price, and how owning your work and taking pride in it comes into play. You mentioned that some materials end up being better for a given product, and I imagine sometimes the better fit material may be less expensive, and sometimes more. So when you've got substantially more money available for each item, do you try to improve the item? Is there a "this is actual the best version I can make IMHO" and it's about finding the highest price the market will bear? Would you try to find cheaper materials while holding the price to maximize margins? I guess one question that arises, is what's your priority stack? Anyway thank you for sharing, it's cool seeing how different strategies have played out, and hearing your insights on how and why these things behave in certain conditions. Also the visuals and general quality of your video is great.

[@CreativeHiveCo]

You’ve raised some really great points! When it comes to quality vs. price, my priority is always to create something I can stand behind 100%. So, if a material is the best fit, whether it's more or less expensive, I’ll go with it because I want the final product to reflect the vision I had for it. That said, when I have more budget flexibility, I do look at ways to improve the item, but it’s not always about upgrading materials. My priority stack is: quality and integrity first, customer satisfaction next, and then maintaining a balance between cost and profitability.

[@cooledcannon]

Counterintuitive weird things. I don't do shops like this but I'll be sure to jack up the price of everything I do.

[@CreativeHiveCo]

Thank you for watching!

[@xakariii]

could this strategy work for services, such as art commissions?

[@CreativeHiveCo]

Yes!

[@TheBlueArcher]

Reminds me of an example a business professor gave back when I was in school with hair scrunchies. There was a company that wasn't selling much because everyone thought they were low quality. -- and the price was the cause of that perception. Raising the price increased the sales and perception of the scrunchies. Another thing is that, prices ending in odd numbers tend to process in the mind as a deal, where as even numbers process as luxury. So if you include a definite premium detail, and sell at a price that some people would seem "absurd" an even number would sell better. If you were to do an even more premium product, that would as an example reach maybe 100+ price range (numbers pulled from the top of my head), it's more likely that $150 would do better than $149.99 and $200 would do better than $199.99 because that's what those people you're targeting at that price range value.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@DeclanShanaghy]

Why do you not have a link to your shop in the description?!?!? Your stuff looks amazing. I wanted to check it out and can't find a link. I'm gonna go look for it in Etsy now but I'm sure a lot of others give up here

[@DeclanShanaghy]

☹️ can't find u. All I have to go on is this snow cone and there are too many copy cats. U didn't even mention your store name in the video

[@CreativeHiveCo]

Hi there! Here's my Etsy Shop:www.etsy.com/shop/tinyhands?ref=shop_sugg_market and my website: tinyhandsonline.com/

[@dubbyplays]

Basically: *- Make quality product* *- Put effort in product and its presentation* *- Make it a price that isn't too cheap* (it will be perceived as a rip-off low quality fake product) *but neither too high* (people can think if it's worth the value) *- Whatever Temu/Wish/Shein do, you do the opposite*

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@charliem6335]

It's called "price elasticity of demand". I have known it and applied it for over 30+ years.

[@edithandlez]

bro shutup your gotcha moment fell flat

[@charliem6335]

@edithandlez You shut the F up! Nobody was going for a gotcha anything!

[@charliem6335]

@edithandlez Eliza you are a snarky troll. Not happy with your life? Change it! Being a bitch is not looking good!

[@CreativeHiveCo]

Thank you for watching!

[@charliem6335]

@@CreativeHiveCo How is that you censor my reply to Edith's obnoxious reply but you let hers stand?

[@saftcoral23]

Could this work for food too?

[@CreativeHiveCo]

Definitely!

[@FoundationForFamilyFreedom]

SOME PEOPLE WANT THE MOST EXPENSIVE ITEMS BECAUSE THEY BELIEVE IT HAS MORE VALUE. BEING THE CHEAPEST ISN'T THE BEST WAY TO ATTRACT VALUED CUSTOMERS.

[@CreativeHiveCo]

Totally agree! Thank you for watching!

[@StickerKitten]

This makes sense for eg jewellery or knitted items - like people pay thousands of pounds for jewellery. But what about things like stickers and stationery? Still handmade but there’ll be a natural price cap where people aren’t going to pay more than a few pounds/dollars for a sheet of stickers.

[@CreativeHiveCo]

Good point. Offering bundles or exclusive designs can help add value and justify a higher price for smaller items like stickers!

[@haukenot3345]

It's a minor point, but how do you go through life wearing clothes without realizing that polyester is less comfortable to wear than cotton?

[@samc5602]

My brother somehow likes polyester more than cotton 😭

[@felixoupopote]

Believe it or not, some people can't even hear fluorescent lights.

[@CreativeHiveCo]

Thank you for watching!

[@victoriouskitten]

Thanks for this.

[@CreativeHiveCo]

Thank you for watching!

[@TinTeddyVideos]

Please, could you do a video where you explain the process etc for getting the licence to use a trademark, like for the Snow Cones? I am sure there are loads of crafters who have wondered and don't know how to start getting permission. I realize it would change depending on the company who owns the trademark, but things like whether you need to hit sales criteria before they will grant one, or whether you pay a percentage of your sales to them, or a fixed/yearly fee would be fascinating things to know. Thank you.

[@CreativeHiveCo]

Thanks for the suggestion! That's a great idea for a video, and I totally agree-it's a topic a lot of crafters might be curious about. Stay tuned for more videos in the future!

[@titod.v7457]

Muito Bom. Parabéns. Você é uma beleza!

[@CreativeHiveCo]

Thank you for watching!

[@CoutureButcher]

Where can I find your jewelry store?

[@CreativeHiveCo]

Here's the link: tinyhandsonline.com/

[@AvesPasseri-Jinysvet]

It's funny. As an entrepreneur, I like it. It seems just fair. As a customer, it seems that people push prices high simply by refusing to buy something that seems to be too cheap....

[@CreativeHiveCo]

You make a great point! It’s a balance of understanding value from both sides, and sometimes the psychology behind pricing can drive that dynamic. Thanks for sharing your thoughts!

[@VickyCooksalot]

You just rang a bell for me. Something my dad said about gas prices. He owned a gas station and I asked him about the prices were always 9/10. You know instead of gas being $3.15 it was 3.14 9/10 always done with a 1/10 less. He said it was psychology. When you see different prices while driving your brain adjusts what it sees. So you don't think $3.15 is not better. Your brain thinks oh $3.14 is better than the last place I saw. So if you're looking at cat food and you think Friskies is 3.00 guess I'll grab Purina at $2.99 it's cheaper. I was like 😮💡 WOW! Thanks, Dad. So I trained my brain differently. I always adjust that penny or fraction of a penny. 😅 That's the secret to what you're talking about. 😊

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@DevilTrojanChic]

Simple answer...supply and demand. You always raise your prices until demand drops. It's that sweet spot.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@felixoupopote]

You missed the 99 cent nuance during your TED talk here.

[@warriormamma8098]

New sub. Even though I don’t currently make and therefore don’t sell anything but I may one day!

[@CreativeHiveCo]

Awesome! Thank you!

[@karenaware6569]

Really great video!

[@CreativeHiveCo]

Thank you for watching!

[@transcendcapitalism]

would be interesting to see if $49.95 outperforms $49.99, since i guess ending in .95 can communicate this idea of of "higher quality"

[@CreativeHiveCo]

Interesting thought! Thank you for watching!

[@Iris_and_or_George]

Would be nice to add that having a larger margin gives you more time to put in even more effort to make it even more perfect.

[@CreativeHiveCo]

Thank you for watching and sharing your insights!

[@MaxSMoke777]

I have seen this myself. I've made some pendants, cast from 3D model I personally created and printed, then molded and cast in high quality Pewter. I priced them mostly based on the cost of the pewter alone, less then $20. Made one sale in 6 months. Tried marking them down, zero sales. Got annoyed and marked them at $40, and made a sale in 2 weeks. I've sold 3 more at the MUCH higher cost. I didn't try the .99 pricing, as it seems silly, but maybe I will now. I think I'll even jack up the prices again. It's such a pain to get to the post office, and I got brocotisis making them (probably breathing the tin vapors from melted pewter), I think I might even try $80. I won't be making them again until I create some kind of workshop outside of my home. Might as well make those last few copies count.

[@CreativeHiveCo]

I’d say go for it with the price increase; the right buyers will appreciate the rarity and craftsmanship. Plus, you definitely deserve to be compensated fairly for all that effort (and health risks!).

[@ReigoVassal]

This reminded to one tea brand from Yogyakarta, Indonesia. It's one of the tourist destination. There's a tea that is sold very cheap with traditional packaging. It's barely sold. Then they increase the price and sell it as some kind of fancy traditional tea. They ended up making lots of profits.

[@CreativeHiveCo]

That’s a great example of how powerful perceived value can be!

[@sirguy6678]

Excellent video!

[@CreativeHiveCo]

Thank you for watching!

[@rainie3003]

I don't see how this will work unless you have a huge following. I tried to sell my handmade stuff and they say I price too much but I spend many hours doing it

[@CreativeHiveCo]

I totally get where you're coming from! It can be tough, especially when handmade work is so labor-intensive. Finding the right audience who appreciates handmade quality is key-it’s not always about having a huge following but the right one.

[@AlyssaSullivan]

This is so weird to me because I have never once looked at something priced low and just assumed it was crap or there was something wrong with it 😅

[@CreativeHiveCo]

Thank you for watching!

[@ReiRidingSolo]

I just did this with my prices (journal stickers). My sales completely disappeared. I don't think 4.39 w free shipping for a pack of stickers they can't find anywhere else is that expensive. I also offer buy 4 get 1 free. Should I make them more expensive?

[@CreativeHiveCo]

If sales dropped after the change, it might not just be about the price. It could also be about how your value is communicated to customers. Are your listings emphasizing what makes your stickers special? Things like quality, uniqueness, and the benefits of your free shipping and bundle deal should stand out.

[@aSnailCyclopsNamedSteve]

Yes, old economic theory. Maximum profit is calculated as profit per unit x number of buyers, not profit per unit alone. Capitalists really promote it. Buyers usually see it as unethical when a seller is revealed as doing it. Ethical pricing is considered a fair wage for the components, including time, effort, and skill. But what may be a fair wage where you live may not suffice where your buyers or competition live. Minimum wage in Missouri is less than in New York for a reason.

[@CreativeHiveCo]

Thank you for watching and sharing your thoughts!

[@MashaB-pk8hl]

I find myself comparing the product I am interested in with others in the same store. I’m trying to see the price to value ratio for these other products to judge if the price of the thing I want to buy is fair. I’m not looking for the lowest price but for something that I like at a fair price.

[@CreativeHiveCo]

Thank you for watching and sharing your experience!