Do you believe that cutting your price is the only way to attract new customers? When you discount your price as a way to attract new business, you get people who are bargain hunting and “testing the waters”. What if they like your work and need another project done in the future? You guessed it! They’ll expect another low price for that project. Is your price attracting the customers you want?
The price you set for your work creates a perceived value, and sends a message about your worth to potential customers. If your price is too low, people who are looking for high-end products might be afraid to give you a try…a “you get what you pay for” kind of mentality. Quoting the job at a higher price sends the message that your products, craftsmanship, and customer service are worth paying more for.
However, if you’ve got a lot of materials kicking around that aren’t going to be used and are taking up space, it may be necessary to discount those products to get cash flowing. With inventory reduction and increased cash in your pocket, you can buy wisely and sell profitably the next time.