So you’ve crafted that new template to perfection. You’ve uploaded your design, filled the description section, and added the immaculate product previews. But now you have to set your prices and you’re stumped.
Do you go high, or do you go low? How do you price your template?
License Types
Let’s start off by explaining each license in terms of graphics and template products and who will be buying them:
Personal
A Personal license will not be used to advertise any services or products. If you are selling a wedding invite template, for example, a bride can purchase a personal license because the end product will not promote a product or service. Non-profits can also opt for Personal licenses. This license type will mostly be purchased by an individual.
Commercial
A Commercial license is required when the end product will promote a product or service. If you sell a graphic illustration, for example, it can be printed on up to 5 000 book covers with a commercial license. Or, if you sell social media templates, they can be used for one social media account to sell or advertise services. This license type will mostly be purchased by small businesses.
Extended Commercial
The Extended Commercial license is intended for mass production, advertising, or unlimited social accounts. To use the previous example of a graphic illustration used for a book cover, this book cover can now be printed up to 250 000 times with this license type, and the social template can be used for an unlimited amount of accounts. This license will mostly be purchased by large companies.
The above information is important because you now have a clear idea of who will be purchasing a specific license type.
If you’d like more information regarding license types, have a look at the Creative Market License FAQ Info.
Different Pricing Strategies
Low Pricing Strategy
Some designers want to get a feel for the right pricing for their template and start off at the lowest recommended price or lower than recommended. If they receive a certain amount of sales, they will gradually increase the amount until the demand starts decreasing and then lower back to the point before demand decreased. Low pricing can lead to more sales. However, a template gets a lot more views and sales in the first few months when it’s new, especially if featured in Staff Picks, on social media, or in newsletters from Creative Market, and it will most likely see a decline in views after this marketing boost.
There are also some risk potential customers could view the low price as an indication the product is just not as good as another template option. Even though we know this is not entirely true.
High Pricing Strategy
The flip side to low pricing is the High Price Strategy. You can set prices higher than the recommended amount or at the highest recommended price point. You then lower the price as demand decreases. The perception might be that you will indicate a higher level of value, but you also risk losing sales.
Competitive Pricing
This is by far my personal favorite method to determine pricing. The first step will be to search for similar graphics or templates available on Creative Market. Have a look at their pricing, the number of assets that are included in the product, and if any additional assets are included. Does your product provide more, less, or the same value for the customer? If your product provides fewer elements or features, consider going slightly lower than the similar option and vice versa.
Median Pricing
You can also workout a median template price. Select three or more similar templates, add up their Commercial license costs, and divide by amount of templates.
Example: $ 35 (Template A) + $ 28 (Template B) + $ 32 (Template C) = 95 / 3 = 31.62 Rounded up to $ 32. You now have your template Median Price.
For more pricing tips, you can look at An Vu’s really useful Post on How to Price Your Designs.
Setting Your Prices
Using one of the above pricing strategies, or your own, start by either entering your Personal or Commercial costing. I personally prefer setting Commercial costing first.
As mentioned previously, a Commercial license is purchased mostly by small businesses. So now, to calculate the Personal license, which is mostly purchased by individuals, you can create a rule that the price should be at least 15% less. Creative Market requires the Personal license to be at least 1.1 lower than the Commercial license, which you can also opt for.
Last but definitely not least, we have to calculate the Extended Commercial License price. The Creative Market rule is that the Extended Commercial license should be at least twice the Personal license price. You can opt to double the Personal license cost or create another pricing rule for the Extended Commercial license. In the example below, I opted for an 80% increase in the Commercial license price.
Remember that an Extended Commercial license allows your template or graphic to be used in unlimited social accounts, unlimited advertisements, or 250 000 end products, so the buyer is really getting a lot of bang for their buck. Don’t undervalue yourself when setting this price.
Track Your Sales and Test Your Pricing
Pricing will never remain stagnant. You will need to adjust according to the market changes.
When you don’t receive the sales you desire or would like to increase pricing, try adjusting the price a certain percentage or a few dollars. Remember to keep track of the effect of the price change by visiting your Creative Market Shop Analytics and compare sales from previous months.
For more on using Creative Market Analytics and tips on increasing sales, read Creative Markets Post Introducing Our New Shop Analytics.
You can also look into Price Elasticity on Demand or a Pricing Calculator to test and review your pricing.
The Sum of It All
Pricing can be tricky. We’re creatives, most of us despise numbers almost as much as a logo designed in Word Art, but it’s an important factor in the success of your shop… if not the most important factor. Take some time to plan, review, and set your pricing. It will pay off in the long run.
Hope you found the above info useful. Have any useful tips on pricing? Drop a comment down below!
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