What do I charge for my items?
This is a question that will always be asked by every artisan when they decide to move from hobby to business owner. A common way of pricing is done through researching our competition and then pricing below them. This is NOT the way to price YOUR work.
It takes time and money to purchase the items we need to even start making our product. You need to make sure that is being covered in your price. Then you need to make sure you are making a profit, this way you can CONTINUE to do what you love and keep your business running smoothly.
Below you will find charts and a formula that most use to calculate their prices for their products. The actual example I am using a sewing project (but of COURSE that is what I do!)...
Actual Pricing Breakdown Example:
Total Material Costs = $42.00
$42.00 x 2 = $84.00
$84.00 x 2 = $168.00
The above charges are BEFORE you add your labor.
When adding labor you just need to determine the number of hours it takes to complete the your item, and yes you include the time it took to design it.
So if this pretend item took 4 hours total and you are a SKILLED/ADVANCED artisan, then your pricing will work out as follows:
$42.00 x 2 = $84.00 + $80.00 = $164.00
$84.00 x 2 = $168.00 + $80.00 = $244.00
Now this is a lot of information, and you are probably reading this and falling off your chair with what the final calculations are showing. Remember these are your items and you take the time to make them. If you are looking for this to be your full-time job then you will need to make sure you will be able to stay in business.
But in no way am I saying you have to follow the above formula verbatim. I am one that chooses to only use the formula with the cost of materials, I do not add in a direct labor rate. I am currently making sales and I also have a profit.
The only item I will add to this formula is when I am designing a piece not currently in my line for a customer. That fee is considered a 'Commission Fee' and depending on the item being designed there are set fees from $15.00 to $75.00. That fee is added to the final wholesale or retail price and charged to the customer. Know that fee does not give the purchaser any rights to the product - since that will be stated in your polices of course.
So what is my point here... YOU love your work and know it's value, so make sure you are charging for it and DO NOT worry about your competition, that is their business, not yours... Whether you are selling at your booth at a craft fair or through your website, there will be that customer that questions your price or even asks for a discount! Never be little your work, they are just one person and there will be other customers that really enjoy and appreciate your talent.
Well I hope everyone has a great week and I will be talking with ya soon! Remember any questions or comments, PLEASE leave them below!!!
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