Earlier this week, I talked a bit about the pricing of handmade goods. That post explains a little bit about why handmade items cost what they do, but a Facebook friend brought up a great point: many crafters underprice their items, and it’s probably because they haven’t done the math.
I know that it took me quite some time to figure out how to price my goods. If you’re interested in my formula, here it is:
cost of materials + (hourly wage)(number of hours) = wholesale price
My formula for retail price varies a bit. A lot of folks just double the wholesale price, but I don’t always do that. A fellow crafter mentioned that her wholesale price is around 60% of her retail, and that feels a bit more right to me. I think it’s a matter of weighing your cost versus what the retail market will bear.
It’s a pretty simplistic formula, and there are other ones out there that you might want to take a peek at, too. Here are some good resources for finding the right price for your items:
- The Handmade Marketplace by Kari Chapin
- Pricing Your Handmade Goods on What the Craft
- The Art of Pricing on the Etsy blog
So, my crafty pals, do you think you’ve been pricing your goods appropriately? It took me ages to come up with prices that I felt comfortable with, and I’m still tinkering with my formula a bit.
Image Credit: Creative Commons photo by heatherknitz