Wednesday, April 6, 2011

Pricing your work

Pricing your work can be a hard and tricky thing. You
don’t want to price your work too high and end up not selling anything or very little. And on the other hand you don’t want to price your work too low devaluing your work and not making enough profit. It is important to check the market and find out what similar items sell at. Compare those prices with your material costs and labor and see how you compare. But this is to just give you a ball park figure of similar items or a range you might want to be in. In the end it is always up to you what you price your products at.

Here’s a few basics that I use……

Set a rate for your time but be competitive,  reasonable and flexible. Some projects that take a lot of time might need a minor price adjustment if you feel it is to expensive. Some quick projects(in my case most my earrings) I have to set a minimal  of 15 minute for time because they only take a few minutes to make and few materials. In the end it balances out for me and for other artist and artisans I have talked with about time and pricing. Some might disagree with adjusting your labor charges on timely projects and so be it, I am not telling you how to price your work just giving tips that have helped me.

Keep track of your cost for materials. This can be a challenge in itself, more so if you order a lot at once. I take a few extra minutes when checking a new order to write the price on each package of beads if I feel I will not remember. Charge for all your materials remember this is money you already have invested in the product. What about the small things crimp beads, glue, string, paint that are purchased in larger quantities and used a little at a time? I just  add a small figure to the total price depending on the project. It could be .20 cents or a few dollars.

Do not forget overhead cost. Over head cost are not just for people who have separate studios and shops from there homes. We still pay for listing online, packaging, shipping(if you offer free shipping), business cards, thank you notes, paper, ink, computer, gas for getting materials and to the post office and so on. You should figure an amount or percentage for over head cost into your pricing it is part of your finished product and services.

Here is an example of my pricing……………

Item                                                  Cost
1 hour labor                                       15.00
Beads                                                  5.00
Other Materials wire etc…                      .50
Overhead                                             1.00
Final cost                                           21.50

I hope this is useful in helping you find your own way to price your work.

Here is a Etsy Treasury I put together this week......

'Trees for any season' by KindredImages

Trees inspire with their contest beauty. Here is a treasury of trees featuring fellow Mainers from the Etsy Maine Team


Rainforest Japser -...
$75.00

Set of 4 Reversible...
$15.00

Cherry Blossom Tree...
$5.00

Gold Leaf Pendant/C...
$35.00

Fine Art Photograph...
$20.00

Framed Original Oil...
$525.00

Spring Sale 10% OFF...
$25.00

Tree Sterling Silv...
$3.98

Large Serving Bowl ...
$200.00

Sunset - 5x7 matt...
$12.00

Stump Coasters (set...
$10.00

Upcycled Wool Tree ...
$35.00

Crows in Chrome Tri...
$7.00

Birches and Blue Sk...
$22.50

Birch Bark Earrings...
$24.95

Framed 5 x 7 Batik ...
$25.00

4 comments:

Elaine said...

Just Hello! :O)

Mei-shan Lin said...

This is so useful for me. A good reminder. Thank you. I really appreciate your advice. ^_^

MegansBeadedDesigns said...

Good advice. it's also important to keep in mind your ability to offer coupon codes and discounts. You don't want to be hurting your bottom line every time you offer someone 25% off their next purchase (or the like), so price accordingly.

Laura said...

I don't see any profit built in to this formula. I do a similar thing but I add a markup for profit to grow the business. I also take into account the fees associated with selling online.

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