Tuesday, March 17, 2009

For Crafters: Tools To Help You Price Your Handmade Products

I'm not a business person and I've always hated dealing with numbers...perhaps that's one reason why I took Arts! :p I love crafting and last year I've decided to sell some of my handmade faux cupcakes online. It was hard for me, as I don't know how to price my items. I asked around my friends on how should I price my work, and they would just reply "just double the material cost!" I would cringed by thought of it, I worked hard for one faux cupcake and then..."just double the material cost!?" :p What about my labor of love? I worked hard for it didn't I? :p

So, yeah, I still sold each for just twice the cost of all my material costings and totally forgetting the labor cost, indirect/overhead cost, the Etsy listing fee, transaction fee, PayPal fees, handling fee, etc. I know I'm such a terrible business person. I barely made profit from my first few sales. But I'm very much thankful for them because they gave me my first positive feedbacks, which gave me some more sales! ;)

It took me a while to fix my pricing. I had to calculate everything right (materials, labor, tranction fees, etc.) Once I got my price, I compared it to others who sell the same items. I pretty much have the same price (some even have higher). So, I guess I calculated right. :)

For other crafters out there who don't want to get all crazy getting you pricing right, here are some free tools to help you get them right:

Free Spreadsheets for Pricing your Work by a great jewelry designer/maker Chris Parry

Etsy Seller Inventory Worksheet - this is and Excel Spreadsheet which helps Etsy sellers track down their inventory and profit.

Make sure that the price is right! ;)


marie christine said...

Artwork and money are 2 worlds completely oppposite !
But the artists need money as everyone... so they have to price their work... and so it gets really hard..
If they price all the hours they spent working, oh oh the price would be too expensive and if they don't, only the customers would like the price !
What could they do then ? I believe they have to find the right price between these 2 prices ! Good Luck ! Bonne journée Jara et à bientôt !