Reasons not to position your artisan business in the middle market

As interest in contemporary craft grows, the artisan goods market has become increasingly competitive with more makers and retailers offering their creations for sale. This, in turn, has created challenges to getting craftwork seen, particularly if you are looking to position your artisan business in the crowded middle market.

What is the middle market?

Markets are typically divided into low, middle and high-end segments. These segments are tailored to the price, quality and availability expectations of their target consumers. As its name suggests, the middle market sits between the spectrum of mass-produced, low-priced and cheap quality goods, and limited or bespoke, high-quality, expensive goods, by offering products that are good quality yet affordable. Middle-market goods and services typically range from high-volume to limited-edition entry-level premium offerings.

The middle market is popular for brand positioning because it attracts a large, broad consumer base with moderate to high levels of disposable income. This, however, makes the mid-market, as previously mentioned, very competitive. It is here that profit margins get squeezed in a bid to attract customers and be profitable. Sellers in this mid-marketplace segment range from independent small businesses to multi-chain department store retailers that can afford to mass-produce at above-average quality, while keeping prices affordable enough to make a profit.

Why positioning your artisan brand in the middle market isn’t always the best option

1. You will always be competing on price

By positioning your artisan brand in the middle market, you will be competing on price while trying to maintain the quality of your craftwork. Bigger retailers can afford to buy materials in bulk, reducing the overall cost per item they produce. Trying to keep up with this market positioning strategy has a detrimental effect on your business and profitability. This is because at this level, being forced to lower your prices can push your craftwork into the low market. And, the lower you price your craftwork, the more product you have to make and sell to meet your financial targets. On the other hand, charging higher-than-average prices can make your work too expensive for the market, leaving you with little to no sales.

2. You’ll get lost in a sea of average quality brands

In the middle market, your artisan business belongs to neither the high nor the low end. This is because it is perceived as too cheap to be premium and too expensive to be low-cost, so you lose out either way. It is more difficult to make a profit. If positioning your artisan business as high-end makes you uncomfortable, you can create spectacular high-priced bespoke or limited-edition pieces or collections and balance them out with a collection of pieces at more affordable price points. For more on getting comfortable with charging high prices for your craft work, read: What to do if Selling your Statement handmade crafts to Rich People Makes you Feel Uncomfortable.

Positioning your artisan business in the premium sector

The premium sector is not about competing on cost. It is about letting your skills, creativity, and story take centre stage.

The higher you position your work in the market, the less it becomes about how much something costs and more about how it makes a customer feel. Positioning your artisan goods at the higher end of the middle market, or the premium and high-end market, can make financial sense. This is because the higher you go, the less you make, and the less you sell, but the more you can charge, which even things out and can save you time.

Note: If you are positioning your craftwork as premium or high-end, you better make sure your work and how you present it reflect the level of quality that is expected by the market.

That said, whichever market you choose to position your artisan business in, you still have to put in the work it takes to stand out. And, savvy artisan business owners know that offering premium-priced creations alongside their more affordable high-volume collections can be a winning option.

If you’re looking for clarity to help you position and elevate your craftwork in the premium artisan goods sector, my carefully curated services can help. Discover what’s on offer here.

– Tapiwa Matsinde

[Image credit: The image shown belongs to Enikő Tóth from Pexels. If downloaded and used elsewhere, please credit accordingly.]