Question :
Hello and thank you for offering to help so many businesses during these difficult times.  I own a small (nearly 1 year old) business making living art. Much of my work has been custom work for individual clients.  I also lease some of my artwork to businesses and am about to launch an initiative to lease some of my products out for weddings.  I am concerned that I have my whole formula for working out my lease pricing incorrect, due to some feedback I have received.  Is there any kind of formula that can be used to work out one off pricing for an event or for leasing items on a weekly, monthly or yearly term.

Question submitted 24/05/20 @ 10:57pm
Industry: Creative Services
  • Up

    Morena Kirsty – great question. First thing I might do is do some market research at hire companies to understand what is the range of options and pricing for hiring out items from the ‘functional’ to the ‘artistic’. I would also maybe do some research of ‘home staging companies’ that can fit out houses for sale. These data points will help you know what others are doing in the market as key elements into helping you establish some pricing.

    That is the easy part – the hard part then comes down to your pricing – an idea that you might consider is taking the ‘full costs’ of a typical wedding – and then break them down into %s for each main item – then look at what you were looking to charge for your art and do a comparison – in the end you want to tread this line where customers are making decisions to use your art because they love the art, it is different and they can justify and afford it in the context of their whole budget for the event.

    Separate to weddings, for other events – if you really have something different, then maybe you can push the element of pricing – albeit in a time like this, the action here is discretionary to the purchaser or customer will need to justify it.

    Final thing – feedback is a gift, just make sure it is representative of your target market, your customers and not your family or mates. On this, one way to test this would be to find people who have married in the last couple of years and interview them about their experience and then ultimately whether they would find having something like your wedding art a ‘nice to have’ or ‘must have’ – get that first, then only talk about price once you have clarity on that.

    All the best – Andy

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