What should I charge for my items? Honestly this is the most difficult question of all. I deal with this all the time with my rubber stamp company. (www.jessicalynnoriginal.com) is the price too high? Too low? Will I make any money back?
There are a lot of thing to take into the costs of your items.
When doing pricing please note there will ALWAYS be someone who can sell it for less. Usually that person is not going to make any money, or they don’t know how to calculate out the prices correct. I see this all the time on Ebay or Etsy. I have no idea how they are making any money when you see some of the prices.
- Cost of the Materials: You need to keep a list, an excel spreadsheet, or something that will allow you to track the cost of the items that you are making. If the items requires fabric for example. If it costs $6.00 for 1 yard of fabric and you can make 5 of them from it. It would be $6.00 divided by 5 = $1.20 each. Don’t forget to use the total cost. So if you pay sales tax include that. So in Wisconsin it would be $6.33 so divide that by 5 the real cost would be $1.27 each.
- Related Costs: You may want to include any “extra costs” such as booth expenses, travel expenses, etc. Be sure to make a tight budget and stick to it. I know in the past posts I have shared ideas on to make your booth fancy. BUT maybe that isn’t how you start. Start small and build it up – esp if you do not have a large budget. Remember that baby steps are the way to go.
I would make a total for that example:
- Booth cost:$100
- Travel cost: $30
- Total $130. Let’s say that I am selling 200 items. I would divide 200 items into the $130. So there would be an extra fee per item of 65 cents. This is often over looked or not included in the cost of the items. But you had to pay for it.
- Pay Yourself: Your time is the most valuable product that the customer it paying for. Obviously you cannot charge super high amounts because you need items ready to sell prices. Remember that you will never get paid for all of your labor.
- Don’t Overprice: You will really need to watch for this! You will know very quickly if people are not loving those costs – they won’t stop and shop. Simple as that. The simplest formula is 1/3 cost, 1/3 labor, 1/3 profit. It is very hard to find that middle ground. Some types of crafts have caps on what individuals will pay for a piece, period. If your work is being shown in a flea market or in a gift shop where similar items will be on display at lower prices. That’s why you need to window-shop your competition’s pricing as well.
Place price tags on all of the items that you sell. Can you imagine walking up to a booth and loving everything and then finding out the prices are higher than what you expect? It is somewhat disappointing, especially if you spent a lot of time looking at everything. If the price is there, you know what you’re in for when you’re shopping. If you were shopping at a department store and you added many items to your cart only to “wait” until you get to the register to check out to find those prices.
You could lose a sale: If you don’t place prices on your items you might loose the sale. For me I really don’t like to ask because it makes be feel obligated to buy the item.
Keep Moving Forward,