How to Price your Crafts?
How do I price my work? In the handmade industry, pricing your work is one of the most challenging things for artists. If you are just picking a price out of thin air you might be undervaluing yourself.
Are you charging what you are worth?
Remember you have spent years practicing and learning your art. It’s a skillset you have (that not everyone can do). People will pay what you’re worth. We want to teach you how to price your work, price yor craft and get paid what you are worth.
Why use a Formula?
Using a pricing formula takes the guess work of pricing your work. The formula shouldn’t be the only factor, but it will set the base line in pricing your work. A good pricing formula ensures that you pay your self and account for your materials. It also helps you understand wholesale vs retail pricing. Given the first time you try the formula you will be caught off guard. You might realize that you are undervaluing your worth.
I love the pricing formula from CraftProfessional.com; it makes it simple and easy to understand.
Materials + Labor + 10-15% overhead = Total Cost;
Total Cost x2 = Wholesale Price;
Wholesale Price x 2 = Retail
COST OF LABOR: The money you pay yourself or an employee to make the product.
COST OF MATERIALS: The cost of the tools, parts and supplies needed to make your product. Think of cost per item.
WHOLESALE PRICE: The wholesale price is the price of goods in large quantities (ie for resale by a retailer).
RETAIL PRICE: The retail price is the manufacture’s suggested retail price (MSRP), also known as a list price or recommended retail price (RRP) of a product. Retail price is what you sell the item at full price.
How to Price your Work e-book only $7.99
We invite you to download our new e-book “How to Price your Work”. It’s available in our Etsy Shop for just $7.49. This is a complete 9 page guide that will walk you through an overview of pricing your products. How to determine your cost of labour and cost of materials. Understand the difference between wholesale and retail pricing. We will walk you through two Pricing Formulas (commonly used) that can be applied to any handmade product. Included in this guide are worksheets and examples on how to use these formulas. Learn about the types of pricing strategies. Finally we will look at market research. As a bonus an excel spreadsheet that helps calculate your prices is included.