Pricing Your Handmade Crafts: How Much Should You Charge?
Crafting is not only a hobby but also a passionate creative outlet for many. Whether you are a seasoned artisan or just starting out, if your ultimate goal is to monetize your skills and turn your passion into a profitable business, this should give you some confidence.
Full warning, the process of pricing your craft items can be challenging, especially when you are new to the idea of asking someone for money. It is essential to take into account ALL factors, such as the cost of materials, time and effort put into each item, and the current market demand.(to the best of your knowledge) This article will shed some light on this idea and should help you determine the right price for your crafted items.
Cost of Materials: Calculate EVERYTHING
The first step in pricing your craft items is to calculate the cost of materials used. This includes the cost of concrete/plaster/resin, molds, paint, as well as any other supplies or tools used in the creative process. It is important to keep a record of the cost of each item, as it will help you determine the minimum price you NEED to charge.
Time and Effort: A Tangible Asset
In addition to the cost of materials, you will consider the time and effort put into each crafted item. This includes the time spent perfecting your style, planning, cutting, sanding, and finishing the item. To accurately calculate the cost of time and effort, it is recommended to keep a log of the hours spent on each item and use an hourly rate to determine the cost.
Market Demand: Visit Your Competitors
"Market demand" is an important factor to consider when pricing your stuff. This refers to the current demand for similar items and the prices charged by your competitors. Get your backside out to some local pop ups, craft fairs and farmers markets. Shop similar products and get familiar with prices. Step into a booth, get handsy with their items and even watch them close a sale or two to give you an idea of their responses. This is called sales recon, it's real data and it is highly effective.
Setting the Right Price
With all the above factors in mind, it is time to set the right price for your handmade products. The final price should reflect the cost of materials, time, skill, and that recon work you've done. It is essential to strike a balance between pricing your items too low, which will not generate enough revenue, and pricing them too high, which may turn customers away.
To help you determine the right price, it is recommended to create a pricing matrix that takes into account all the relevant factors. Check out this example:
- Cost of supplies + $16-25 per hour time spent = Price A
- Cost of supplies x 3 = Price B
- Price A + Price B divided by 2 (to get the average) = Item $$$
Know your numbers. Know your value. Be confident and get what you deserve.
Get To Work.
Starting a craft business will be challenging, but with the right pricing strategy in place, it will be a rewarding and fulfilling venture. Breathe, this is doable!