By Marilyn Schwader, Smart Women's Café Contributing Expert

A few years ago, I suggested to my sister, who is a very good artist, that if she raised her prices on her pieces that she would sell more, and with the higher price, make much more for the same amount of effort. Her first reaction was that she didn't want to price herself "out of her market."

A year went by, and every time I saw her, I'd suggest she raise her prices. Finally, after encouragement from many others, she relented and doubled her price. Almost immediately, she began to sell more.

Two years later, she now sells her work for triple what she once charged and has a list of commissions waiting for her to get to. She has not changed her marketing or increased her exposure. She simply made her artwork "reassuredly" expensive so that her market feels they are getting value for their money.

Pricing is an important component of the success phenomenon, although many business people have no idea how to approach this piece of the puzzle. It's taking three things into account:

•  your perception of your product's value
•  how much effort you want to expend
•  the buyer's perceived value