Your Craft Business: Pricing your Products for Profit
Pricing your products often is one of the most difficult aspects of owning a craft business. One thing to remember, though, is that pricing your products low won’t equal sales. Pricing your items fairly (which usually means higher than they are now) can increase your craft business sales. Here are some things to consider when pricing your products.
Or, a perception of quality. Sure, there are consumers who don’t care about quality and will buy cheap products at cheap prices and not think about it. Those who are buying from an independent craft business, though, want quality and are willing to pay for it. If you make a beautiful necklace with quality materials but you price it low, many people will believe that they aren’t getting the high quality materials that you’ve made it with. If you’re looking for quality for yourself or a friend, it’s hard to believe that you’re getting a quality product when the price is too low. If there were two wallets that looked exactly the same but one cost $15 and the other cost $35, which one would you believe was of higher quality? When pricing your products, set your price according to the quality of materials you use.
Your Creativity and Labor
You should never sell your craft business short and not account for your labor when pricing your products. You should keep track of how long you work on your pieces. You need to pay yourself an hourly wage and also factor in development time. It can take a long time developing a product and your techniques. Since you wear so many hats in your craft business, you should price accordingly. Think about it: After you’ve developed the product, made it, photographed it, listed it, promoted it, and shipped it, do you think you’re charging enough for the work you are putting into it?
After you’ve thought about all of these factors, start pricing your products accordingly. Here are some links to some formulas that you can use when pricing your products:
Pricing your products is a big hurdle to jump, but you need to do it right and get what you deserve. To be a sustainable craft business, you need to price like a business..