How to Price Crafts
Calculate how many hours a week you put into crafting., Determine how much you're willing to work for per hour., Figure out how many pieces you can reasonably create in an hour., Conduct market research to determine the going rate for similar...
Step-by-Step Guide
-
Step 1: Calculate how many hours a week you put into crafting.
Most likely you are creating your crafts at home, so you must consider how much of your week is working time. -
Step 2: Determine how much you're willing to work for per hour.
If you don't want to make less than $10 an hour and you're crafting 40 hours a week, you will need to price your crafts so that you make at least $400 if you sell the entire inventory. , If your pieces aren't too time consuming, you may be able to price each piece at a reasonably competitive price.
If one piece takes you more than an hour, each piece must be priced a little higher to compensate you for the time. , Check out trade shows and craft fairs to get a good idea of what other crafters are charging. , Find out how much crafting sites charge for fees and allowing you to list your crafts.
You will need to include this fee when calculating the cost of your crafts. , While selling on consignment can help improve your business, you may have to raise your prices in order to cover the overhead costs plus the consignment fee. ,, Different formulas work, but one of the easier ones is multiplying your overhead costs by the amount of money you want to make each week and divide it by the number of units you're able to produce a week.
The total is the amount you should charge per piece. , As the economy changes, your overhead will change.
If you rely on only one formula to determine how to price your crafts, it will be hard to make changes when aspects affecting the cost and price of your crafts change. -
Step 3: Figure out how many pieces you can reasonably create in an hour.
-
Step 4: Conduct market research to determine the going rate for similar crafts.
-
Step 5: Research online crafting outlets to find out if the online prices are similar to craft fair prices.
-
Step 6: Expect to have a chunk of your overall profit reduced if you create crafts to sell on consignment.
-
Step 7: Factor in sales tax and marketing before coming up with a formula to determine how much you need to charge for each item.
-
Step 8: Create a formula that works best for your business.
-
Step 9: Make sure you use flexible formulas.
Detailed Guide
Most likely you are creating your crafts at home, so you must consider how much of your week is working time.
If you don't want to make less than $10 an hour and you're crafting 40 hours a week, you will need to price your crafts so that you make at least $400 if you sell the entire inventory. , If your pieces aren't too time consuming, you may be able to price each piece at a reasonably competitive price.
If one piece takes you more than an hour, each piece must be priced a little higher to compensate you for the time. , Check out trade shows and craft fairs to get a good idea of what other crafters are charging. , Find out how much crafting sites charge for fees and allowing you to list your crafts.
You will need to include this fee when calculating the cost of your crafts. , While selling on consignment can help improve your business, you may have to raise your prices in order to cover the overhead costs plus the consignment fee. ,, Different formulas work, but one of the easier ones is multiplying your overhead costs by the amount of money you want to make each week and divide it by the number of units you're able to produce a week.
The total is the amount you should charge per piece. , As the economy changes, your overhead will change.
If you rely on only one formula to determine how to price your crafts, it will be hard to make changes when aspects affecting the cost and price of your crafts change.
About the Author
Jessica Smith
A passionate writer with expertise in lifestyle topics. Loves sharing practical knowledge.
Rate This Guide
How helpful was this guide? Click to rate: