Pricing Your Crafts
Sunday January 21, 2007
One of the biggest mistakes I see with people who are just getting started selling crafts is that they set the price of their crafts too low. Remember your quality should be higher than similar products on the market; therefore your price should be set higher than similar items. You will need to pay for your materials of course, but don't forget to include things like marketing expenses (show fees, Web sites, etc.) and most of all, do not forget to pay yourself! Too many first time sellers will be so excited that people are buying their crafts that they forget that crafters have to be paid for their time, just like with a "real job"!
Comments
With all the cheap imports on the market I find it hard to price my crafts in a range that pays for my time. I consider myself extremely lucky if my materials, fees, etc are met. If I were to include “paying myself” I’m afraid I’d price myself right out of the market.
This was right on the mark.
I had to convince my daughter to charge enough for her hand-crocheted hats. Her’s are one-of-a-kind creations and she was trying to price them the same as all of the other ones we saw at craft shows. Most of these folks had identical or run-of-the-mill hats which were pretty, but not unique. They were not “paying themselves” either. Most of them were charging $10 - $15 for a hat. Now they said “Well the yarn was on sale and it is just a hobby anyway”.
I told my daughter that this was a business for her and that you cannot use sale prices to set your product price. The next time you need that kind of yarn you will likely have to pay full price and customers don’t want to see your prices jumping up and down.
Also, she spends hours coming up with new designs and techniques and she should count that time in too.
Her prices are still not as high as they probably should be, but she can do alright with whats she earns.
Diana
I have to agree with Michelle. My experence has been that you simply cannot charge enough to pay for all your expenses, including your time, or you would price yourself right out of the market. Most people simply won’t pay it. Especially with all the imports flooding the market with a cheaper price. The average consumer is concerned more with price than where the product was made or by whom. Some can’t tell the difference anyway unless the “made in China” tag is left on the item - which happens quite often and that doesn’t deter them either if the price is right.
We have to realize that the customers that come to our craft shows are not the same people who shop at the high end stores. They have a limited budget and are thrilled when they can find something they want at a fair price. Very few crafters can make a living at just doing craft shows.
If your prices are too out of line with others at the same show they will almost always go with the cheaper product even if they don’t like it as well. I sell alot of product because I keep my prices low.
I Like the Idea of selling low I do it for the relaxation. I paint on canvas old furniture and mushrooms ect so I can be very competetive. for instance I sold a magazine rack that should have been $30.00 for 10 dollars and when the old man got to exit he told the news paper what I had done. They printed it in the sunday paper. I got a full page ad for free that weekend.
Here’s another thought for those of you who think low pricing is the way to go. I was told by a friend that when she has something that isn’t selling she raises the price. More times than not it sells. She often told me that we needed to keep our prices higher but I never really understood until I did a show next to a beader who did beautiful woven beaded vessels. She did amazing intricate work on bottles. I knew that she had spent hours and hours making each one but her prices were set at $10-$20. My first thought was that she must not have made them, she had to have bought them to be selling them so cheaply. So, the lesson I learned: don’t sell yourself too cheap, your customers know you’re worth it!
I got the selling fever at my first small crafts fair but when I really looked at the time and effort in my pieces I had to rethink. Mainly it comes down to the venue. Research the shows you do. I have some “homey” craft shows where I sell simple pieces $12.00 to $75.00 range and then I do fine art festivals where the range is $45.00 to $750.00. Know your value, your venue and your customer.
The question is this a hobby or a business. If it is a business then you must price to cover your expenses and pay yourself. How long will a business stay in business if their expenses exceed their profits. If you intend to keep at this for the long term you have to charge enough to make it worth your while. No exceptions.
I agree with everyone that it is difficult to know what to price your items. For some things if you include the time it takes to make the product you will price yourself right out of the market. My husband and I refinish vintage chairs and then repaint them. This is a long process and if we included out time in the price no one would buy them.
Thanks for all the great information, pricing has got to be the most difficult area to figure out especially for those of us who are beginning. I’m new to watercolor and recently got brave enough to put it on my website to sell so am unsure of it’s $ value. Sometimes it’s difficult to have an unattached view, I have the urge to charge more for the paintings I like and less for the ones I don’t mind letting go of. I’ll take all of your advice to heart and rethink my almost famous painter prices.
Thanks!
Heidi