👋 Welcome Back, Booth to Bank Family
If you're new here, welcome.
If you’ve been following along — welcome back.
This is Week 7 of our Booth to Bank series — where we focus on helping handmade business owners protect their profits, raise their confidence, and sell with strategy instead of stress.
My name is Nathan Knightes, and I'm a Director of Finance by day, and your Sell Out Vendor Booth Host on weekends. I’ve been an entrepreneur for over 30 years, and for the last 13+ years, my wife and I have sold at over 500 craft fairs, pop-ups, festivals, and vendor markets.
We’ve built booths from scratch, scaled product lines, and learned — the hard way — that pricing is not just math.
It’s mindset + message + experience.
And this week, we’re talking about the #1 place vendors lose money:
Pricing based on what other vendors are charging — instead of what your business actually needs to survive.
If your prices aren’t rooted in your real costs and your real value, they are leaking profit.
Let’s fix that.
🧩 The Pricing Trap (And Why It’s So Common)
You see another vendor selling something similar for less.
Your confidence drops.
Your instinct says:
“Maybe I should match their price… just to stay competitive.”
But here’s the truth:
They may not be profitable.
They may not know their costs.
They may be in panic-pricing mode themselves.
And if you lower your price, you just joined the race to the bottom — where no one wins.
💸 Part 1: How Underpricing Damages Your Business
Lowering your price does 3 dangerous things:
| Effect | What Happens | Why It’s Harmful |
|---|---|---|
| You train customers to expect cheap | They won’t pay more later. | You trap yourself in a low-price identity. |
| You undervalue your skill | You start believing the lower price is “fair.” | Confidence erodes. Burnout follows. |
| You destroy your profit margin | Your revenue grows but your bank account doesn’t. | Busy ≠ profitable. |
PRO TIP BOX: Stop Asking “What are other vendors charging?”
Instead, ask:
“What does my business need to make per hour to be worth my time?”
If you don’t pay yourself, your business isn’t a business — it’s an expensive hobby.
📊 Part 2: The Pricing Formula That Actually Works
Here is the exact formula we use:
Step 1: Calculate Cost
Step 2: Add Profit Margin
Example (Realistic Plush Example)
| Item | Cost |
|---|---|
| Yarn, stuffing, safety eyes, labels | $6.25 |
| Time: 1.5 hours at $12/hr | $18.00 |
| Event cost share (booth fee / # of items) | $2.50 |
| Overhead share | $1.25 |
True Cost: $28.00
With 40% margin: $39.20 → Round to $40
Most vendors would charge $20–$25 — and lose money every sale.
ACTION TASK: Run This Today
Take your 3 best sellers, run the formula, and write down:
-
True cost
-
Current price
-
Actual profit per piece
This alone can change your entire year.
When someone says:
“That’s a little high.”
Most vendors panic.
Do not justify. Do not discount. Do not explain.
Use this confidence script instead:
“Totally understand! Each piece is handmade and designed to last. I never rush these — I make them well.”
OR if they still hesitate:
“No worries at all — the right piece always finds the right person.”
Say it warmly.
Say it calmly.
Then pause.
Silence is where confidence lives.
PRO TIP BOX:
Never justify your work with time.
Say quality, craftsmanship, or designed to last — those are value words.
Want to know the real advantage?
Experience. Not price.
Here are 4 ways to become the vendor customers want to buy from:
| Upgrade | Why It Matters | Example |
|---|---|---|
| Brand Story Tag | It adds meaning | A small tag with your logo + “Handmade in FL with love.” |
| Intentional Booth Layout | People buy what they can easily browse | Use height, levels, and clear table flow. |
| One Consistent Color Palette | Looks premium, trustworthy | Choose 2 brand colors and stick to them. |
| Customer Connection | People buy from people they like | Greet every shopper within 3 seconds. |
Pro Tip:
Most vendors don’t need more products.
They need better booth presentation and clearer value communication.
You started your business to build something meaningful — not to compete in a bargain bin.
This week:
-
Audit your prices using the formula.
-
Update your top sellers to reflect real profit.
-
Practice your confidence scripts so your energy matches your value.
Because you deserve to be paid for your craft — not just praised for it.
Until next time — keep showing up, keep improving, and keep turning yarn into smiles. 💕
– Nathan Knightes
Vendor Mentor | Entrepreneur of 30+ Years | 13+ Years Selling at Events | 500+ Shows Completed | Co-Owner of Little Luvin Stitches