Posted by
Tamara Wilson in
Business on
February 25, 2009 |
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Most crafters do what they do because they love it. Their finished projects are each special in their own way, and they may seem priceless. This is one reason that some crafters have a hard time setting prices for their work when they decide to start selling it.
Pricing your products properly is essential if you want to operate at a profit. Yet all too often, crafters price their products according to what others are charging for similar ones. While it is important to consider the competition, that’s not the first thing to look at when setting our prices. Instead, we need to consider how much our materials cost, how much we should be charging for labor, and what other costs we incur for each product.
Here is a breakdown of how to figure your prices:
- Materials – You’ll need to know how much the materials for each individual piece cost. Since we rarely buy just enough materials for only one piece at a time, we need to divide the cost per package by the number of projects we can make from that package. For example, if one skein of yarn that costs $6 will make three scarves, your cost for yarn is $2 per scarf. You’ll need to figure this for every material used, then add the resulting figures together to get your total cost of materials.
- Labor – Many crafters underestimate their labor costs, and some overlook them altogether. One of the easiest ways to figure labor is to imagine that you are working as an employee. How much would you expect to make per hour for your work? Multiply your price per hour by the number of hours it takes you to complete a project, and you’ll have your labor cost.
- Overhead – For the most part, overhead for crafting is low. But in some cases, you might need to charge a small amount per product for it. If you’re sewing with a sewing machine, for example, your electricity costs should be added in.
- Fees - Fees will vary depending on how and where you are selling your products. Most online venues charge a listing fee and a final value fee, both of which should be added into your sales price. Include shipping as well (if applicable), unless you plan to offer “free” shipping.
Adding your materials, labor and overhead together will give you your actual cost. As a rule of thumb, your retail price would be the actual cost times two. Add in your fees to come up with a listing price.
Tips for Common Venues
- Ebay – Buyers on eBay are usually looking for great deals, so you won’t be able to get as much for each item as you might through other venues. Crafters often opt to sell their wares in wholesale lots when selling on eBay. If you decide to do this, you’ll need to adjust your price per item accordingly.
- Etsy – It’s important not to overcharge for your crafts, but it’s equally important not to undercharge, especially in marketplaces such as Etsy. Craft lovers frequent Etsy, and they are usually willing to pay what an item is worth.
- Craft fairs - You won’t have to worry about shipping here, but it’s important to charge enough per item to cover your costs for participating. Booth rental, transportation of yourself and your products, and lodging are some of the things that need to be figured in.
Selling your crafts is a great way to make money doing something you love. By following these guidelines, you can painlessly set a fair price for your items.
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This is a great post and so useful. I never know what to charge. I do add up what an item costs me to make, but then I need to figure too what my time is worth.
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Yes, is depends on many factors ,
And the for example If I have my personal online shop, I can promote it myself , but that will be hard working
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Competing on price alone is often a death sentence – semeone will always be cheaper. The fact of the matter is you should charge the maximum that the market will bare. This might mean testing different price points in different communities.
se your Web site as a marketing tool. Sell items directly on the site or use the site to educate customers about your product or service.
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it is wonderful site I never know what to charge. I do add up what an item costs me to make, but then I need to figure too what my time is worth.
Thanks for telling us how much we should charge for our crafts.I realised that most craft are quite over priced.I wonder if they charge too much for their labour.