i am totally torn on this.
on one hand, i don't want my items to be 'luxury' goods, in the sense that i don't want to exclude people just because they don't have a big pay check. i don't have a big pay check, and i still love and cherish the handmade goods i can afford. i don't want art and beauty to be a thing only accessible to those with lots of desposable cash!
on the other hand, of course i undertand the logic that 'a race to the bottom' benefits no one. and i respect the notion of solidarity amoung crafters to maintain a sustainable markets for ourselves. the fact is if we consistantly undersell ourselves, we cannot stay in business, and our craft won't be available to anyone!
i personally have tried to strike a balance with a product that can easily pay for itself - i can make a batch of about 35 candles in a day (and i'm getting faster), the wax and wick cost little per pair made, and typical eg. competitive, retail prices still give me a good return.
that said, i can't make anything if no one is buying! these are hard times, and when the truth of the matter is that you are selling a non-essential item, shouldn't you react by making your product more affordable? if people have significantly less desposable income, they won't buy pricey items. they might on the other hand consider a more affordable item. so if my choice is between making few if any sales at all, waiting around for the few customers able to afford my art, or making more sales by putting my prices within people's reach..... i might go for a the second option!
this is such a hard one.
