Recessionary Pricing

I’m turning next weekend’s arts/crafts show into a social and financial experiment. I’m going to lower my prices and see what happens. This is anathema to many artists who worry about being justly compensated for their time and talent, but challenging economic times call for new approaches.

Thanks to a lot of downtime in the past few months, my inventory has become huge, so I really need to move a lot of products. I’m willing to sacrifice price for volume. I will still make a profit on each sale, not a huge profit, but a profit nonetheless. And I’d rather make a small profit than carry home and store a huge inventory.

Since I got rid of my merchant account late last year in a fit of anger and frustration about the ever-increasing bank fees, I can risk making a little less money on each transaction knowing I don’t have to pay the bank for the “privilege” of accepting credit cards. Of course, that could back-fire on me if people aren’t carrying around cash or checks, but I’m willing to take the risk at this upcoming show to learn how much of a difference in makes in this economy.

I have artist friends who have never taken credit/debit cards and seem to do just fine. They’ve built a following of repeat customers who know what form of payment to make. I have other friends who pay steep fees to be able to take Visa, Master Card, even American Express and Diner’s Club (does anyone really use a Diner’s Club card anymore?). They are terrified of any potential sale walking away because the buyer can’t use plastic to pay for a $3 bracelet.

Those friends are equally terrified of having checks bounce. In the nearly 10 years that I’ve been selling my textile art at shows throughout the West and on the East Coast, I’ve never received a bad check. I trust my customers to make a valid payment just as they trust me to make a quality product.

So we’ll see how next weekend’s show in Grand Lake goes and what effect the economy has on sales and types of payment. Not taking credit cards may mean I miss a few higher-end impulse purchases, but I’m hoping the lower prices will make up for it. I’ll post my observations, for better or worse, in the week after the show.