PROFESSIONAL OR HOBBY
I used to attend various craft fairs and farmers markets events and it was an endless battle of being undercut. Anyone who has ever dabbled in the craft fair market will know this only too well. If you’re doing things right then your product will be priced accordingly. And then you would have the hobbyist. Not that I’m knocking anyone side hustling because you know how much I love a good side hustle. But still, for something like soap, you need a cosmetics license and insurance to be able to make and sell such items. Many of the hobbyists I encountered didn’t have such things, thus didn’t have the costs either. Often they would forget about tax, NI and paying the electric bill all has to be factored into your pricing. They would sell their products, often similar to mine at £1 cheaper. Naturally, the unsuspecting buyer would always go for the cheaper product.
THE STRUGGLE IS REAL
It’s much the same in my business today. There is always someone willing to do the job cheaper. I see so many adverts for people willing to sell social media management for £50 a month! And there will be a never ending supply of people happy to pay that. Which makes my job harder when I have to tell these people that £50 per month is an unrealistic figure for me to work for. Managing a celebrities social media is very different to a business account and requires a different approach. There will always be a super fan or random admin person in the agent’s office who is willing to do the job for free.
As I’ve talked about before, cheap or free is not professional. It’s not what a professional business or public figure should be looking for.