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Topic: An Underselling Discussion: crafting problem everywhere...  (Read 29490 times)
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« Reply #140 on: November 19, 2010 11:55:25 PM »

There is no point trying to sell stuff people don't want to buy - no matter the quality!  Smiley

I think that's the bottom line.  There's what people are willing to spend to buy something and there's what it actually costs to make.  And if those two numbers don't match up... well, then it's not going to work.  It's called market forces.

There's a part of me that really wants to give it a go trying to sell my crafts... but I know in reality it's horribly difficult to actually do.

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« Reply #141 on: November 27, 2010 03:50:03 PM »

I'm a bit quirky when it comes to pricing my stuff. I have a spreadsheet that I have set up where I enter in various fields and it tells me what I should price it. Here's how I have it set up:

1.) I have a set of fields for materials. Each material gets its own field where the unit price is multiplied how much I estimate that I actually use. Yarn + filling + eyes + embroidery thread = cost of materials.

2.) Then I figure in labour costs. Currently I'm paying myself $5/hr as I'm brand new to my hobby (read: unskilled, not knowledgeable, and things are bordering on crappy looking when I get in a hurry...). I'll be raising my labour cost to $10/hr when I feel like my skills have sufficiently increased -- when things no longer have obvious flaws.

This is my base price that I'd tell someone that something costs if they ask me for it in person without a booth or anything else associated with it.

3.) I then factor in other costs like booth rent, travel, store owner commission, etc and add this to the cost for each item as needed.

This means that the stuff at the physical store is going to cost more than the stuff on my website as I don't have to pay their commission. It seems to keep the prices reasonable for handmade items.

My way seems complicated, but logical to me. Someday I'll figure out a way to simplify it or be awesome enough to well known enough not to do a physical store, but until then, I'll stick with this.

I was going to take over the world, but then I got distracted by something shiny.
« Reply #142 on: January 19, 2011 10:53:36 AM »

I agree that you can't really expect to get a reasonable price on your items when there are so many crafters out there selling stuff for such a low price.  It makes for a very competitive market.  But in the end, they are all selling themselves short for the quality items that they make.  People need to realize that buying from a crafter is guaranteeing that the merchandise perchased will be of WAY better quality than they would get in any ordinary store.
« Reply #143 on: November 21, 2011 12:08:33 PM »

I did a pricing seminar in school
we learned that in order to get a fair price you
add cost of materials plus minimum wage (here it's 10$/h) = X
(ex: materials = 10$ takes 1 hour to make = 10$ total = 20$)
Then to get your whole sale price you multiply this by 2.
(20$ x 2 = 40$)
Then! to get your retail price you multiply the new cost by 2
(40$ x 2 = 80$)

So sell a product that took you 20$ to make for 80$
This seems like a huge markup until you think of it this way,
if you only sold it for 40$ and a store wanted to buy it from you they'll usually pay you 50% of the retail cost, so 20$ for a 40$ product. Remember you materials and labor cost you 20$ so this leaves you with a  profit of exactly 0$
So, if you sold it for 80$ a store would pay you 40$ for it, leaving you with a  profit of 20$. (40$ - 20$ M&L)

That being said, sometimes it's impossible to factor in your labor. I knit, so say I'm knitting a plain cardigan to sell. The cardigan I'm working on now, has probably taken me about 50 hours. And I have used 6 balls of wool.
6 balls of wool x 10$/ball = 60
50 hours x 10$/h = 500
560 x 2 = 1120$ whole sale
560 x 3 = 2240$ retail
Who's going to pay almost 2300$ for a sweater?

I think in the end it's all about what the buyer wants to pay. I usually pay myself a little more than double the materials, say M&L x 2 +10ish$
I also never sell my knitting, I'll never be able to sell it for what I feel it's worth, heck, I'd never be able to sell it for what the materials cost me.
« Last Edit: November 21, 2011 12:10:50 PM by MissMouse » THIS ROCKS   Logged

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