"How did you know how to price your products without running the risk of underpricing your work?"
This is such a great question! Truth is I didn't always know how to price my work. When I first started LPS in 2008 I focused on stationery and art prints which have a much lower price point. But even then I knew I had to charge enough to cover the cost of material/printing and labor (the time it took me to not only design, but also promote, print/package and ship the product). It's easy to under price your work when starting out. You think you can "test" your prices to see what sticks/brings in a sale. I would strongly advise you to not do that. Instead, do your research. See how others in the same industry are pricing their work and don't be afraid to (if you have to) charge a premium price.
Now that said, if you do end up charging a premium price for your work, know you have to stand behind the value you want your work to be perceived as. What does that really mean? In my business it means I only offer our jewelry in precious metals...even though we are fully capable to offer it in a variety of other cheaper metals. Why is that? We choose to serve a smaller group of customers who see the value in purchasing higher end pieces that will last them a lifetime...a true heirloom if you will. We are fully aware that by doing so we lose a large group of customers who "can't afford" our product...We have no desire to be the kind of brand who's business model is "supply on demand". Instead we focus on offering a premium product and the best customer service to our customers (I will cover this in more detail on a future post!) We happily refer those whom we can't serve to other businesses in the industry who offer the kind of products we don't. We don't see this as "giving away business" but rather finding the right match for those customers' needs.
I hope this was helpful. If you have any other business related questions don't hesitate to email me or leave us a DM on instagram. I am always happy to share my experience with other entrepreneurs.