Pricing according to perceived value

[CalicoFraming]

I've been giving some thought to how I approach pricing and wondered about a strategy which links price to the value the customer perceives, rather than to the cost of materials. So I thought I'd ask if anyone has any insights into the customer's view of framing. Is it that they expect more substantial mouldings to be more expensive than skimpier mouldings? Are gold/silver style finishes expected to be more expensive? What about things like v-grooves or double-mounts? Does the customer think they're worth paying for? Anyway, you get the idea.

Any thoughts?

[Mary]

As someone who has been a customer far more than I've been a framer, I'd say yes to all of those. Also, presentation counts for a lot: taking care to wrap a frame and handling it as a thing of beauty and value when you're handing it over, and giving a little hanging kit adds way more value than it costs. I've always felt perfectly happy paying framers who do all this a little more than those who just lob the frame at me expecting me to bring my own packing, even though the frame quality itself is no different. And that's from the perspective of a skinflint artist

[CalicoFraming]

Interesting you should hit upon the niceties of the process. I agree totally. Even though I can't afford it, I like to shop at Waitrose sometimes because I like the way the staff treat the customers, like they really are interested that you had a good shopping experience. And also agree, as a fellow skinflint, that it can be very disarming to get a little something for nothing - in your case, a hanging kit.

What about other intangibles - the sense of something being hand crafted? Or the fact that the framer has a knowledge of frames and their history? Or a general sense of bespoke being special, like a Savile Row suit? Do customers care about any of this? If so, which ones? And is it something they're prepared to pay a premium for?

Also still interested to hear about the actual frames - where do customers expect the cost to lie?

Really interesting all this, looking forward to reading some more responses

[Not your average framer]

Or a general sense of bespoke being special

If you are trading on the basis of offering something special, then I would suggest that it needs to be special in a tangible way.

If you are offering the same sort of work as most of your competitors, then I would suggest that it's not something special, but fairly normal.

If there is something really distinctive about your work, which suggests higher than normal standards of craftsmanship and finish, outstanding design flair, or just obvious excellence, then I would say that you are on the right lines.

As I keep saying "it pays to be different".

[CalicoFraming]

Point taken Mark.

Forgetting about differentiating from competitors for a moment, any suggestions on why customers would expect one moulding to be more expensive than another? Width, depth? Finish? Glossy/matt? etc.?

[Framiac]

Perceived value does reflect on the type of frame, mount, the way you finish the back of the frame etc, but it is so much more than that.

As Mary says there are a lot of things that go into creating an impression of value to the customer.

Firstly: what are the first impressions of your business; in many cases the customer will make up their mind about your pricing from this first impression. What does the front of your store look like? From the outside to when they walk in, is it clean and well lit, do you have good displays with easy access? If the shop looks untidy and tired, but you are trying to charge a premium price , this creates juxtaposition; it just doesn’t come across right. Think of your own shopping experiences and apply those emotions to your own shop.

How do you greet the customer? A cheerful and interested greeting will go a long way to building a rapport with the customer and making them feel special; people spend money on goods and services to feel special. Sometimes it can be as much about the fact that someone has taken interest in them than the actual product.

Be interested in what the customer has brought in. Quite often customers want validation that the item is worth getting framed and they see you as an expert and therefore seek your affirmation. If you don’t think it is anything special or don’t appear to appreciate it, what incentive does this give them to go with the best framing choice. “I’m not sure it’s really worth framing...” Have we all heard that before?

Ask questions:
• Have you had bespoke framing done before?
• Is the picture to be framed for you or is it for someone else?
• Do you need to match your decor or just what best suits the image?
• Is there a particular feel you want to convey?
• This is artwork would usually be framed in a particular style can I show you?

Be an expert in matters of design and use these skills to guide the client into a design that will be captivating and a talking point. Gain a vocabulary of emotive words that describe design and paint images in the client’s mind that will excite them. Words like; create, beautiful, impress, tonal, contrast, minimalist, contemporary, hue, value, abstract, conceptual and so on…

Give transparent and consistent pricing. Standing at the counter pressing lots of buttons on a calculator and writing numbers on paper looks suspicious. Consider how you would feel if you went into a store and the sales person did that. Would you question where the price came from? If pricing is more transparent then people are more willing to accept the price.

Another thing to consider is that if one customer walks into a shoe store and spends and hour with the sales person choosing shoes they pay the same price as the person who only took up 10 minutes. This gives consumer’s confidence in pricing, in retail you will win some and you will lose some, and in the end it all gets balanced out in the hourly rate (refer my article on labour charges).

This is creating perceived value. It’s not just what the frame looks like (what type of materials you used, timber frames can look as good as gilt in the right application) but the type of service the person had as well as the benefits a beautifully framed image will bring to their life.

I have two articles I’ve written on customer service and design if anyone is interested. Email me at uk@framiac.com.

Mark.

[strokebloke]

I haven't been around framing for long, but I'll offer my insights into what I've seen so far.

A lot, I think, is determined firstly by how the client perceives their artwork. Whether they consider it to be of value, or not.
For instance someone not proficient with a camera but producing a rare decent photo, may come to get it framed, but with the attitude of 'this is one of mine so it's of no value'. What they mean is 'I'm pleased with it - can you do it credit, but I don't want to pay the earth for the framing.'
Someone else, who considers himself to be a bit of a 'Bailey', will happily pay to have his work framed to a standard and price that he thinks is worthy to receive his work. I suspect that artists are very similar.
A client who values their artwork is more likely to, and be more amenable to, spend money on getting their treasure framed well and paying well for it.
Mary's points are very valid.
I've realised - I'm sure everyone else has too - the easiest way to earn money is to sell specialist glass.
It's no more difficult to cut/clean/fit AR UV than it is to cut/clean/fit 2mm float. But the profit margins are greater
And if you gain a reputation for 'up-market work for upmarket art' then people will expect to pay 'up market' prices when they come to you.

[Not your average framer]

any suggestions on why customers would expect one moulding to be more expensive than another?

I don't think that you can answer this question in isolation to other questions. Before you can begin to look at what your question means in the context of your own individual business, you will need to answer some other question first. These will include factors relating to your local demographics, characteristics of your local clientel and your target market within the different groups which make up your local clientel.

Individual framers on this forum have very different businesses for a variety of historical, local, or demographic reasons. I wouldn't pretend to know what works elsewhere, but I do know what works where I am. Unfortunately for comparison purposes, my business does not fit into most of the usual categories, but for what it's worth, maybe the following may say something which means something.

I'm located in a rural town, which is advatageously sited to give my a particularly helpful catchment area of mostly medium to higher income people, including a high proportion of older age groups. Many already had works of art in beautifully executed handfinished frames before I arrived on the scene. Over time, many such frames have been brought into my shop for new glass, mounts, cleaning, or whatever.

As a result, I have learnt what really classy handfinished frames look like and what sort of finishes have that "look". In general such frame finishes are quite understated, with mostly muted colouring, lyrical imperfections, softer sheens or even almost matte finishes. Sometimes slightly specked, washed or not over done distressed finishes and so on.

It is helpful to be able to look at some of the classic genuine italian handfinished mouldings to get an understanding of what I'm taking about. Once you have understood the look and feel of such mouldings, you can start to see other possibilities, such as how to give a cheaper, but promising moulding a subtile toning down and perhaps a delicate looking wash to look more expensive. I do this a lot!

Unfortunately, you still have to have the right clientel in your locality otherwise you are wasting your time. Plus whatever sort of area you may find your self in, you still have to get what you intend to offer to some degree "in tune" with you local market and clientel. You really do need to "get into" the sort of things which your discerning customers are already "into" and this takes time to discover.

For many of us, the look and feel of what customers will go for will not be the same. I can't sell the things which are all the rage in the cities and larger towns, or for that matter a lot of the more trendy up to the minute type things. Some of this you will need to discover from your own experience!

[mikeysaling]

I'd make a fortune