- Watchlord WIS
- Posts: 2821
- Joined: January 29th 2013, 11:00pm
'This must come to an end.
Serious Microbrands should shamelessly raise prices. They should leave the race to the bottom and cheap watches segment for those who already are good at that race, namely Aragon, Orient and hordes of Chinese factories selling directly to market. It’s hopeless race, and it deeply demoralizes the watches buyers audience.
No, I’m not asking anyone to start adding absurdly fat margins, typical for Swiss Fat Cats, and all the fashion industry which sells absolute crap for some serious money.
I’m proposing to think long term, in terms of business sustainability and chances to make the income for watchmakers actually good enough so they could thrive, not barely survive.
You could think I’m crazy, you could think people would stop buying if you charge $600 instead of $350 or $1200 instead of $600, but I will tell you that you are completely wrong.
Here’s what happens when you raise prices: you will lose the buyers looking for bargains and demanding that you sell at cost, but you will suddenly get attention from buyers who admire your work, your passion and would never buy before because your previous prices looked too suspicious or even, pardon my French, silly!
It’s not rant or theory. It’s my business experience in the last 20 years, and especially the last 10 years. Not watches, services like programming and generally servers on the Internet related. But I have witnessed the same elsewhere.
It took me a good 13 years to realize that, though, so I’m hardly a genius. Rather stubborn idiot, I would say.
One day I said it’s enough, my work is worth more, I should charge more, I should make those little paying but highly demanding customers scared and running away screaming, and make a space for those who value my work and are ready to pay honest price.
So I doubled my prices overnight! Yes, doubled. First I was scared but surprisingly it worked! Two years later I have doubled the already doubled prices again, and added new services very highly priced. I was sure no one will ever buy them! Guess what? Few months later I got first order. Cold sales out of the blue. Shocking! It was my client from few years back who could never convince his employer to buy from me until I started to offer quite expensive options. Surprising, right?
Then I could finally breathe. I could finally start to work instead of fight to survive each and every day.
From the perspective it was very serious lack of understanding of the value of my work and expertise. It wasn’t a race to the bottom. It was crawling on the bottom. Or under the bottom. I was there, and trust me, you don’t want to play this game.
Don’t listen to naysayers, just ignore them! Do your best, learn, improve, and raise your prices. You will be shocked what happens next. Totally different customers will come.
You are worth way more than you think.