How to price your NFTs

At last, you’ve produced work you want to put up for sale, but you’re not too sure how to price it? Ahhh, this is a classic dilemma of a new NFT creator.

To feel daunted by the thought of having to price your NFTs is natural. After all, for determining the value not only of your art but of yourself as an artist as well, price is important. But the good news is, there are ways to make informed decisions on how to price your work.

So how does one go about pricing without wanting to rip the hairs out of your head? Here are some tips for you:

1. Be patient

This is our number one tip for creators. you’ve worked so hard on something, it’s normal to feel like that because buyers will instinctively pick up on the value of your art and it will sell. Expect that it will take time, if you’re new. What formula works for one might not work for the other as every creator is different. Don’t be discouraged if it takes some time to figure out what price works for your creations. Just because your work isn’t selling does not mean you’re a terrible creator and you should burn all your tokens immediately. Make small adjustments along the way, you will need to keep working on your vision – all of these little steps in your journey will be the way to achieving success.

2. Do your own research

Now that we’ve given you some pep talk, here are the practical tips. Price based on intuition is one of the biggest mistakes a creator can make. As a creator, it’s so easy to make decisions based on what you might think the value of your work is, but everything is pretty much theories until you actually look at other NFTs around you and what other creators are doing.

Market data

Diving into different marketplaces and looking at the floor prices of NFTs that are not only of the same genre as yours is a good idea, but don’t forget those that contrast yours as well. As this should give you a good idea of what the average price of a specific type of NFT is.

Check out the competition

Taking a look at the prices of other NFTs on the market might not give you all the information you need. Looking at different creators – the frequency of which their works  are being sold, and how big of a following they have determines how popular they are in the market, which should give you a good idea of your own standing in comparison, these things will allow you to price appropriately. You can also see who their buyers are, especially if they are creating NFTs that are also similar to your own. This will help you better frame who your target audience is, and allow you to get in-depth with their spending habits and buying history.

Let your buyers decide

Some creators don’t set a price for their NFTs and instead, they wait for potential buyers to make some offers. It is a good way to gauge what NFT collectors are willing to pay, and can also indicate a range of prices that are suitable for your work. But remember, you don’t have to accept offers, especially if you feel they are too low – this can just be a means of collecting information from potential buyers that can tell the pricing of your future NFT listings. If you receive an offer higher than expected, and you can feel confident about listing your other works at a similar price, then go ahead and accept it. Of course, remember to share on your socials that someone bought your NFT for that price, as this can solidify the perceived value of your NFT.

3. Know thyself

For NFT pricing, it’s not enough to know the market, you also need to know yourself – what you’re producing, the number of tokens you are planning to mint, how many NFTs have you already sold, and who your niche or target market is. Yes, the age-old adage of ‘know thyself’ does apply in this instance as well. 

This guide is for minting based on the type of NFT and how many NFTs you’re planning to mint:

Inventory

If you have only had one or two NFTs in your inventory, then the chances are, it would be hard to convince buyers that you’re an established artist with a repertoire that will fetch a high resale price later on. On the contrary, having too many unsold NFTs in your inventory further heightens the fact that the demand for your artwork hasn’t really picked up yet. A good starting point to slowly work up from, and eventually price higher is a healthy number to showcase your creativity and your value as an artist.

Number of copies

One tip is knowing the number of copies of a particular piece of NFT you’re planning to sell. The more copies the lower the price, the fewer the copies, the higher you can afford to price it due to the rarity of the item, it’s the general rule of thumb. An edition of 10 should always be priced differently from a 1:1 no matter what. If your work is a piece of “fine art”,rather than a “collectible” then pricing strategies may work out to be different as well. Nonetheless, the previous tip does still apply when it comes to overall selling power. 

Value Proposition

Apart from the art itself, what added value is there for your NFT. Offering additional benefits for your NFT holders, could allow you to price your NFT higher than competitors who are only offering the artwork. Adding value can be as simple as affirming in the NFT description that you will offer higher quality file formats, or customized resolutions of your artwork so that it can be used as a wallpaper / fit more nicely into a display frame. Offering access to NFT holders with exclusive commissions, events you’re hosting, or discounts on other products you may sell will also work well. Whatever the added value is, it will allow you to price your NFTs higher as buyers are getting more out of their purchase.

4. Make full use of the platform

No matter where you’ve minted it, your work is valuable. But depending on where you mint it, you can leverage the platform you’re on to add to or increase the value of your NFT. In fact, you should always make use of the features to your full advantage, that’s what they are there for!

Marketplace features

Depending on which platform you’re on, the features on each do vary. We offer creators an unlockable content feature for every NFT on Trophee. Unlockable content works like exclusive content, like a bonus feature on a purchase. It may increase the value of your NFT, depending on what you attach to your NFT, thus allowing for a more elevated price too. This is an opportunity as a creator to be as creative as you can – think about what you can tack on as unlockable content to add extra value to your work and incentivise a collector to buy it. However, what works for one artist might not work for another, so apply tip 2 of doing some research to this as well.

NFT Pricing Strategies

Pricing as a marketing tactic

Your NFT’s price can represent more than just the value of your work. In order to make it more affordable for collectors, pricing your NFTs lower than you want to,, can be a marketing tactic to inspire loyalty from your collectors. Other artists do this by setting a lower price for their first collection so that their early buyers feel rewarded for their support, especially if the prices increase later. A reflection of branding, it is also about the pricing – If you have a strong brand that has an exclusive or premium vibe, you should price accordingly. For example, a t-shirt from a luxury brand would be priced higher than a similar t-shirt from a mass market brand, even if it's exactly the same t-shirt. 

Selling price vs royalties

There are 2 ways to make money from your work with NFTs, from the initial sale, and from resale royalties. Depending on the type of NFT that you are making, you may want to set this ratio differently. Collectibles are more likely to change hands than fine art NFTs, so you may be able to sell for a lower initial price and bank on making money from royalties. This could encourage more people to buy your NFTs during the initial sale.

Increase prices in a linear fashion

Think in linear terms, it is our final tip for pricing. Entering a marketplace where there are thousands of other NFTs available for sale can be intimidating. Although it’s unrealistic to expect that you’ll be fetching high prices straight away, don’t underestimate the value of your art as well. Getting that first sale is always the hardest, but once that’s out of the way, and you start gaining a steady number of buyers interested in your work, go slowly and steadily using a linear model and raise the floor, working up to pricing them higher as you go.

Final advice

Our final advice is that buyers and collectors are not solely looking at price when they buy your work, they are also looking at the artistry, utility, quality, design, sometimes the labor of NFTs, the list goes on. There are an infinite number of contingent factors outside of price that lead to the sale of an NFT, so selling cheap might not mean your NFTs will sell. Pricing them high is not exactly a good gauge for the true value of your work either. Make informed decisions, do your research, and always remember that for pricing that there are no definite rules.

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