Updated: Oct 16, 2020
So, “Does Price Vary by Location?”
It’s the first comment on our videos where we do a price breakdown:
“I could never sell for that price in my area… people just don’t want to spend that much”
We get comments and DMs asking this underlying question a lot: Does price vary based on your location? So here it is!!
I mean, yeah. Price does vary based on location, but there are two main factors: Median income and demand for certain items in different areas.
Median income varies. A quick google search will show whether your city or county is above or below the national average (which is about $56,500 a year). So what does median mean? If you were to line up everyone in the U.S. richest to poorest and then eliminate one person on each side one by one as you head toward the middle, the last person standing’s income would be considered the median. Lots of economists use this sort of method as a proxy to determine a city’s median income.
Now, part two to this answer: certain items have different demand in different places. For example, corn hole boards can sell for much more in a college town than in Manhattan where the yards aren’t even big enough to fit corn hole boards. You will sell many more winter coat racks in Minneapolis than you will in Hawaii (I don’t know what they’d even use that for in Hawaii….a beach towel rack…?? Hmm…)
BUT, bottom line, these two factors shouldn’t really matter if you’re running a side-hustle! You don’t have the shop space to mass-produce to thousands of people in the “average.” You should focus on selling to high-income clients or niche consumers who value custom work. Why would you spend your valuable time building things for 100 people who can’t afford them and can’t provide you with any profit when you could sell to 5 people who understand the value of your time and work and will pay you what it’s worth every time??
Here’s a silly example…(Bear with me)
Let’s say you want to build really nice end-grain cutting boards. A pretty typical product for an intermediate woodworker trying to turn a profit.
You walk downtown and grab 10 people off the street.
This is a wonderful, not-at-all confusing picture describing our little example of how to find the best people to sell your work to. Check out our video below to see it all play out.
The first 3 don’t ever cook. Like at all. They eat out every meal and wouldn’t know what to do with a cutting board, much less pay for a really nice end-grain board.