Pricing Your Crafts
Sunday July 13, 2008
One of the most important things you will do when starting your business is to decide how much to charge for your crafts.
Remember that you need to not only pay for your materials, but you will also need to factor in things like marketing (show
expenses, etc...) and paying yourself for creating the product.
Comments
I would rather sell at a more intimate show IF the advertising is good. A smaller, intimate show allows customers to not feel rushed to quick see everyone in 1-2 hours time - missing a lot of booths, don’t forget husbands get cranky waiting for their wives to “hurry up”. Whether re-sell is at a show or not, I don’t do as many bigger shows as I do smaller, better managed ones. Small shows can bring in lots of people too, and I have found more buying at smaller shows. It may have something to do with less admission fees, no parking fees, etc. It is a lot to pay and that is before you even enter the show. Smaller ones you don’t have those extra fees (at least those I sell at). Small would be anything from 75 to 25 exhibitors. I also feel the bigger the show the more opportunity re-sell creeps in - there’s so many more spaces that need to be filled sooo…. That’s just my thought though… - Michelle
I see either people pricing their items too low or too high. Of course we all are competing wit those who re-sell, other similar artists in similar mediums, and then retail stores too. But items need to be priced reasonably - you need to be paid for your time and if $2 is how you are paying yourself, wouldn’t it be better to get a full time or part time job?? After all you developed your own skill and the time in making items and so on must be factored in. Let alone gas, paying for the shows, time setting up and then selling and packing up, food (if you buy any), etc.
At the same time if you price your work so high that it isn’t feasible to buy, you will be stuck with a lot of overstock for years. Would it be better, in this case, to lower it and sell it than “wait for the perfect customer” to come along - they may never come! I see this with $500 abstract paintings, $1,000 this and that… Not everyone can afford that - some can, but not all. Offering some smaller items to go with the bigger ones may make someone more open to become a collector of the bigger priced works later on.
I am glad to see this post as I really do think either people are pricing their work too much or too little.
Michelle
I find these comments interesting. I’m crafty. I’m good. People I’ve given gifts to have shown them off and people want to know where can they buy it, how much do I charge, etc. So the thought has crossed my mind. But then the shows in my area are so expensive, it just doesn’t seem worth it. $300 for a space to place my tent, table and wares.
I wonder if the crafters are making ends meet?
I have found that the entry price, the tagging and the displaying should be reasonable in price and simple in the preparation. One show I am going to do, lets the crafters exchange their items for money and then at the end of the day a percentage of 15% is taken by the sponsors. This is so much easier than tagging everything and having it taken to a central register.
I have been in shows in very wealthy areas and bearely covered costs, and I’ve also done small church shows not knowing what would sell, I took a variety of price points and sold 3 pieces where I netted over $1000. You just never know….
No matter your expenses- whether they be low or high- I truly believe that it is a perception of value on the part of the customer that should be setting your prices.
Say you got a screaming deal on your supplies, but the item looks really “rich”- Do not sell it for $10, that just decreased the value in the customers mind (and they may not buy it thinking that there is something wrong with it)- sell it for $50.
Now on the other hand- you handcraft something (say magnets) that looks cute/neat/clever, but not expensive- you spend $10 just to make it- the problem is that maybe it would be perceived as only being worth $5. You will probably not be able to sell it at a profit.
Let me share some personal examples to maybe help more. I engrave art & gifts and have been having a really good year. I have a wide range of prices at my booth. I have shot glasses starting at $10 and decanters that are $75 with many in the middle (mostly $20-$30). Shot glasses are small and not perceived as high $ items. I may have put just as much effort into making one as the expensive decanter, but cannot sell it for any more than I already do. Now the decanters generally are more expensive to start with. Sometimes I luck out and find a nice one at an estate sale (washed thoroughly it is as good as new). Now say I only paid $5 for it- I still need to charge the higher price of $75 because that would be the perceived value- they would wonder why it was only $20 otherwise and for me to replace that item would cost a lot more the next time.
The trick is to find the right price. Keep in mind you will run into those that are cheaper in their spending and those that will think the price is cheap. I am talking the majority of people. The price is right when the customer decides they want something- look at the price and think/say “that is reasonable.”