Common Craft Pricing Formulas
You have crafts all lined up to sell, but you don’t know how much money you should charge for them? Here are some of the most used formula to price crafts:
- Cost of supplies method : This is one of the easiest method, but it doesn’t account for time. It’s still a good method if you wish to sell for fun. Basically, you take the price of your supplies and double or triple it. It can work for some crafts, but it’s pretty limited. And please, please charge the real price for your supplies! If you got things on sale, you should benefit from it, not the buyer, since you do have to replace those supplies.
- Cost of supplies + time method : This method is closer to reality. You charge for your supplies, added to a reasonable rate for your time. I believe a skilled craftsman should be able to charge more for their work that any old fast food worker, but that’s not always the case. So, please charge at least the fast food worker salary.
- Cost of supplies + time + extra method : This method is the best if you intend to make a living with your crafts. It’s the same as above, but allow an extra amount, as a percent or fixed price. This extra is to allow for your fixed costs like your craft room, your time to shop for supplies and maintain and promote your shop. This can take a lot of time, so it’s a good idea to help yourself a bit there.
Also, don’t forget to account for wholesale prices if you ever want to sell wholesale. Wholesale is usually half of your retail price, so you may need to adjust a bit.
Just choose the formula you like the most and get started! A pricing formula is not something static, and it’s only meant to give you an idea. You can adjust it as you go to account for the price your customers want to pay and the price you can live with.
Happy selling,
Cindy
Suggested Reading:
Handmade for Profit!: Hundreds of Secrets to Success in Selling Arts & CraftsThrough her books, articles, and periodicals, Barbara Brabec has been showing people how to profit from their creative talents and know-how for over twenty-five years.
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