Many of you artisans are overwhelmed at the thought of pricing your items. Are you charging too much? Should you be charging more? My guess, is you should be charging more. Here are some tips to kind of gauge where you price point should be.
Online market research
Oooo, sounds so fancy right? You can even call yourself an online market researcher that day when you’re doing it too. I would. Check sites like Etsy and see what the competition is selling at. Just because Suzy Q is selling her dishtowels for $350, doesn’t mean she’s getting $350. Check to see how much she is actually selling first.
Cost of supplies
How much does it cost you to make that scarf? Are you using high quality yarn? Special tools? This should all be considered when determining your price. And try to not every pay retail price. Get wholesale. Use coupons. Whatever. More profit for you.
Cost per hour
What’s your time worth? Are you making those scarves while you binge watch Downton Abbey? Then it’s a little hard to compare to someone who is sitting in their craft room or shop and is just doing that and that only.
Here are some helpful formulas that a lot of artisans use that you could try in your craft business:
A.Cost of Supplies + $10 per Hour Time Spent = Price.
B.Cost of Supplies x 3 = Price
C.Price A + Price B divided by 2 (to get the average between these two prices) = Price C.
Remember to always do your research first. What are people paying and what are they paying for? Not, what are people making. You will grow your online craft business at a nice, steady pace if you are giving the people what they think they need.