Pricing...

[Former_Member]

I know that the 'general' rule of thumb with pricing is whatever your materials cost you times two...is this correct? (or is this the wholesale price?) Do you ever charge LESS than the "times two" total?? I have such a hard time with pricing. I DISLIKE feeling like I gave something away...but I also really dislike items sitting in my shop without even views. Help?

[RobinsArtAndDesign]

Judy,

Your jewelry is beautiful!! Regarding pricing, I double the cost of materials, add between 15% - 20% to cover overhead for fees, excess postage and then add labor - whatever you think your time is worth. You should always pay yourself. You don't want to give things away. I don't think you have to worry if items sit in your shop.

[Former_Member]

The general forums is actually
materials + labor + profit + overhead = wholesale x 2 = retail

http://www.etsy.com/blog/en/2012/a-simple-formula-for-pricing-your-work/

If I only charged double materials...my items would cost less than bake sale prices!

[Former_Member]

Judy

Gena is right - don't forget about your TIME! What are you paying yourself hourly? Think about how long it takes you to make 1 piece of jewelry. Then add it to the equation.

Are you paying yourself minimum wage? Less than? More than?

Your TIME is worth something, too! Not just materials, shipping, advertising, etc.

[Former_Member]

This is so hard when I see so many of the same items I make really inexpensive and wonder how they are making a profit and so feel like I have to adjust mine.

[Former_Member]

Blanca - 1. They aren't making a profit. 2. Don't adjust yours. Photograph and describe them so people understand their worth.

Also keep in mind that Target sells tons of $20 purses and Hermes sells tons of $6,000 purses.

[Former_Member]

Thanks Gens!!!

[Former_Member]

How can I get a price review? My items are favorites and viewed over and over with no sale. I can't think of anything but a price barrier. Should I be putting this question somewhere else?

[Inugurumi]

>materials + labor + profit + overhead = wholesale x 2 = retail

How much profit should I add? I calculated cost of the materials and hours it takes me to make one dog. However, I didn't think about profit. How much do people normally charge as "profit"?

[PaperFlora]

this is such a difficult area-
some formulas make items soooo expensive you've priced your items right out of the market. BUT then again I've seen shops that sell similar items and can't believe they are $11 !! Then I look at it closely and they are shipped from Thailand or the shop can't be making any money at all.
When I first started I made the mistake of underpricing I sold a lot of items and worked like crazy and barely broke even. Today I'd rather sell fewer items for a larger profit.
I've learned a few things-
YOU CAN'T COMPARE -
what your items cost compared to another shop. You don't know what they are paying for there supplies. Are they buying beads from Michaels at $7 a strand or are they purchasing larger quantities for less money?
DO THE MATH-
take a few minutes and really breakdown the cost of one of your items and I mean everything- supplies, labor, overhead, shipping supplies (envelopes, boxes, packing materials) then if you add anything extra as a thank you or extras. You will be surprised at how it all adds up quickly.

GENA says "Also keep in mind that Target sells tons of $20 purses and Hermes sells tons of $6,000 purses." SOOOOOOO TRUE!!
Who is your market?
Mine use to be budget minded brides but I've been slowly changing my inventory to a higher end customer.
I'm not selling 6 clutches at $17 each anymore BUT I am selling 3 clutches at $32 each all the time.

[Former_Member]

this is a very difficult area for most of us.

I wrote an article about it here

http://homecraftbiz.blogspot.com/2012/07/helpful-tools-to-price-handmade.html

sorry, can't post it, if this thread was private, i could just post it, but the thread is google searchable and both this site and that one would get dings on duplicate content.