Many artisans who create amazing handmade crafts are overwhelmed when it comes to putting a price on their work. Pricing your handwork the right way is not an easy task and requires some thinking and some calculating. How do you put a price on all the effort and the time that you invested in the whole creative process?
Below, I will share some of the most important tips that you should follow when choosing the price of your creations. These tips may not be fully applicable to your craft, but you’ll surely get some good ideas. They have worked great for me, which is why I’m sharing them with you.
This is the most important thing that will help you determine the price you should go for. You need to earn more than you have previously invested in the process. Determine the cost of supplies that go into each product and start from there. Make sure to lower the cost of supplies as much as possible, without decreasing the quality of your product. This will allow you to earn some money while doing what you like.
Before setting the price of your product, you should find out how much other similar products on the market go for. If you set your price too high without offering a lot more quality, you will fail to sell what you make. Therefore, it’s important to do online research before even starting to do your craftwork and figure out if you’d be able to price your work in that ballpark.
- Consider Your Hourly Rate
This is one of the trickiest parts in the process of determining the price of your craft. How much should you value your time? Start by determining how much time you need on average to complete one product. Next, try to find out how much you would earn per hour if you did a similar job for someone else. That’s where you should start. Ideally, you should be able to earn more when working on your own than if you work for someone else because you would have to pay taxes and other fees.
- Do Not Underprice Your Products!
Whatever you do, never underprice your products. It’s understandable that you’re doing crafts because you love what you do. However, if you’re self-employed, you should still be able to pay bills and live a comfortable life. Moreover, if you underprice your products, you are sending the wrong message to your potential customers. They might think that your products are of low quality compared to the competition. Therefore, always choose a price that is similar to the one on the market.