Question: Does a slight increase in prices actually increase sales?

   When I first heard this sales tip, I didn't think it would be effective.  Why would customers want to pay more?  But the idea is that if you increase your prices, it increases the perceived value of your work.  Business was slow, so I decided to try it and find out for myself.

   I increased the prices of a few items in my etsy shop, and within about a week and a half, I had 8 orders to fill, 6 of which were custom orders.  That might not sound like a lot of orders to you, but to someone who has just started their business, it was an exciting week.  However, I can't prove that this drastic change is solely due to the slight price increase, it is definitely a factor to consider.

   I have also found that many sellers, especially artists, on etsy undervalue their work.  When I see items similar to mine that are significantly cheaper, I think, "How is your time not worth more than this?"  I try to charge what I think is fair, but even I feel I'm not charging enough for how much time I put into each piece.  But it's all about perceived value.  Is it better to have prices too high or so low you're not making what your time is worth?

How-To: Stay Organized

   Running a business can become a scattered mess very easily.  You have so many things to keep track of:  money, marketing, fees, bills, orders, ideas, etc.  It can be overwhelming if you let all these things you have to get done consume you.  The key to keeping everything in order is planning.

   For me, the easiest way to plan is day-by-day.  I have a very flexible schedule since I am working at home, so it is extremely easy for me to get side-tracked and not get anything done.  But I try not to let slothfulness take over by writing out a To-Do list for every day.  And it doesn't have to be limited to only business related things.  (I include things such as laundry in my lists!)  I write down everything I want to get done in a day and so far, it has worked well for me.  And don't worry if you can't get everything on your list done in one day, just carry those things over to the next day.

   Some of you might find it easier or more effective for you to make weekly, monthly, or yearly goals for yourself.  I have not set any long-term goals for my business, though I do have some marketing ideas to try to bring in local customers once our other laptop is fixed!