When most people start selling their handmade items, they have trouble coming up with a fair price to charge for their wares.
The most important thing to remember is that you are not competing with big-box stores, or chain stores, or even department stores. You are selling one-of-a-kind handcrafted merchandise that only you can give your special touch.
Don’t seek out the custom of bargain hunters. They will always be more comfortable buying things in Target or discount stores and, therefore, will not understand the luxury of buying handmade.
Design your products with a more discriminating shopper in mind.
Here is a simple pricing formula offered by the handmade industry specialists at Etsy:
cost of item (materials + labor) x 2 = wholesale; wholesale x 2 = retail
You may be shocked at the number you get.
But you are worth it.
Another thing to remember: don’t sell yourself short when factoring in your labor costs. Materials are easy to price. You just write down what you paid. But new sellers have a hard time justifying their personal labor rate.
Consider these factors: how much time did it take you? how intricate is the work? did you customize it for the customer? how much training went into doing what you do?
Figure out your hourly rate and don’t be shy about using it in your pricing formula.
We are not in the business of giving away our artisan products for nothing. We are in it for a profit just like everyone else. When you make a truly special product and match it with the perfect customer, everything falls into place.