- Cost of materials; including taxes, shipping and handling, and/or travel expenses
- Overhead costs; internet service, show fees, equipment, tools, packaging, etc.
- Labour; your time is valuable
- Profit margin
Friday, April 26, 2013
How to Price Handmade: Things to Consider
This is not as simple a question as you might think. I've come across various formulas and theories to calculate pricing for your handmade products but here are some basic things to factor in, whatever formula you use.
Keep one important thing in mind when you are calculating prices for your handmade product. Under-pricing it devalues the overall handmade marketplace. It hurts us all and only attracts 'bargain shoppers'. It does not reflect the quality and uniqueness of the product you are selling when compared to what is available at discount stores.
You 'must' value your own talent; believe that your product is worthy of a higher price...or no one else will. And don't assume your product is too expensive if it is not selling either. There could be any number of other factors at work here, including a lack of effective marketing or offering your product in the wrong place. Don't automatically lower your prices.
Getting pricing right is crucial to your success, so much thought and consideration needs to go into this. Over the next couple of weeks, I will look at some of the different aspects of pricing and share my thoughts and suggestions with you.