Calculating Prices
Sunday December 23, 2007
A good way to make sure your 2008 year is off to a productive start is to make sure you have your pricing in order. Too many crafters have worked hard for a long time only to discover that they have forgotten one very important aspect to pricing their crafts: Paying themselves! Make sure that you allow for materials, labor and marketing (shows, Webs sites, etc...) when you are calculating your prices.
Comments
You are so right when you say Crafters forget to pay themselves. I am a candle maker and my proces are usually near the top because I pay myself for what I do. Others look at it as a business and a hobby mix and place little value on their time. Unfortunately it brings the value down for all of us.
I agree totally on this point. I am a painter and I see other painters sell items that I know took hours to detail for little next to nothing. It makes my work seem overpriced but it is what I do so I can’t afford to work for $1 an hour.
If you are a professional artisan then you MUST charge what your work is worth or you will not be able to earn your living with your craft. What I have a real problem with is part-time crafters and retired folks who are just looking for something to do in their spare time who don’t charge any taxes … which makes it very difficult for we professionals who MUST charge taxes.
My biggest fear is caving in at a show because a customer pressures me on price and tax. I learned and don’t anymore—the people that fight the extra 10.00 are usually those that can afford the most.
Thank you for your comments. I really needed to hear this. My husband and I are new to this business. We do all hand-crafted wood items. Most people feel our products are too expensive, but it barley gives us a profit if we sell any lower. The people who do understand and appreciate the work never bicker at all over price, unfortunately there are not as many of them out there. We have only done 6 fairs so far, so we are looking at a better new year. Thanks for all the comments, you guys help a lot!
Kathleen has a great point. I used to find it hard not to come down in price if it looked like I would get no sale otherwise. But it’s not fair to me who has put a lot of time inot a new business and certainly not fair to all the others who came, saw, and liked what they bout at my regular prices. What I now do is to offer a small (10% ) discount on anything over $75.00. That ensures that I will make a nice sale and be able to give someone a little break, as well.