hello my name is Kylie and welcome to how prices are set in this video you'll
learn about how people who wish to sell a product or service set their prices do
you have a lot of great ideas or items for sale in your shop your shop is one
of many competing for sales in our site marketplace watching this video may help
you set the best prices for your artwork so you can get the most sales and make
the most profit ready to learn how to set prices let's get earning
before we get into setting prices for things let's talk a little bit about the
people involved in buying and selling people who make a product or provide a
service for sale are called producers people who buy these items or pay for
these services are called consumers anyone who buys a product from a
producer is a consumer what is the last item or service you bought yesterday I
purchased a service because I got a haircut you are also a producer if
you've designed anything for our marketplace have you if so
congratulations do you have any sales one of the hardest things to do when you
want to sell something you've made is deciding the price at which you should
sell your item at how do you decide well here are some information about how
setting prices works there is a system in buying and selling goods and services
known as supply and demand supply and demand is one of the most important
factors and how prices are set supply is how much of something is available to
buy look at this example okay this store has a great supply of canned food demand
is how many people need or want a good or service so look at all these people
waiting in their cars to buy gasoline this shows a high demand demand for an
item can really affect how that item is priced for example the latest toy or
Music Group's t-shirt will be in really high demand everyone wants it and they
want it now the high demand can cause a producer to set the prices high because
the producer knows the consumer will pay almost any amount to get that item but
if the toy or music group goes out of style and something else comes along the
demand may drop if that happens the prices will drop too scarcity is when
there is not enough of the product to go around to the consumers one great
example of scarcity is any natural resource like oil coal fresh water or
gold the lesser is of an item the more it
will cost your parents may notice at the price of gasoline for their cars can go
up or down quite a bit this is due to the amount of oil available to make the
gasoline an example of scarcity and supply and demand another thing that
affects price is value you may have heard adults ask if something is a good
deal or worth the price they're talking about the quality of the item they wish
to buy if something is being sold at a low price and it's high quality it has
good value many things offered at low prices are not made well and are not a
good value have you ever purchased an item at a good price only to have it
fall apart on you the next day that item was not a good value so you want to
decide how to set a price on an item that you've designed for our marketplace
here is a step by step way to help you set the best price for your item so that
you will make a good profit or scoops or gold and sell a lot of that item step
one determine demand ask yourself what's selling take a look at the types of
items that sell the most make know of the popular colors and designs that are
selling well and what colors and designs may be missing do you notice the latest
craze is pink and purple polka dots but nothing in the marketplace has them
hurry make something step two determine scarcity look around the marketplace to
see if a particular type of item doesn't have a lot of designs or no newer
designs are being made what items are selling well what items could you help
make newer designs for step three check prices once you know what you're going
to make see for what price items are selling some items may be priced high
but are not selling a good target is to set your prices somewhere in the middle
of the lowest price and the highest price step 4 create a good value
make sure your design I mean an item that you can be proud of
and has good quality the better your item is designed the more time you take
in creating it and making it look nice the better the value it will have your
customers will want more and you'll feel good about making a high-quality product
I hope you've learned a lot about how setting prices works are you ready to
create a fabulous unique and amazing design in our marketplace follow the
steps in this video to make sure you're offering a quality product before you
get selling remember to practice what you've learned and our fun online games
and quizzes good luck selling and remember to always be clever