How to Price Products 2
Now, earlier we had talked about the differences between both assumed value of the owner or craftsman, and the assumed value of the customer in relation with the product. The lot between the two is that the line that usually separates them into an agreeable stance is a rarity, and oftentimes a hard-to-pull-off feat.
The second type of pricing is the actual value of the product itself. There is no influence of the buyer and no influence of the seller. Both customer and distributor should master the skill of recognizing a product’s value without their personal biases. Craftsman must put to mind the number of hours and the effort he had placed into creating the product, whilst the customer must put to mind the same thing. Of course, in retrospect, the craftsman must deal with the total utility value of his product and how the customer would use it.
See, there is that lone island of evaluation amidst the prejudice and bias from both sides of the line. Here we have the craftsman who has a price in his mind, and here we have a customer of different opinion. What would be the optimum solution to this dilemma then?
Well, there is always the haggling bit. Customers would haggle, they love it. And craftsman should entertain it. No, you won’t lose money, if that is what you are thinking. Haggling promotes a bond between craftsman and customer, and helps establish a common link that could be an instrument for promoting the start of a beautiful friendship (and a business relationship as well).
The wonders of haggling are that you remind the customer that they are in a craft fair, not in a supermarket. Of course, there are other bits of items that would be too awkward to haggle with, and we will discuss that at a later chapter.