Let's talk pricing!

[Kris]

What's the "secret" formula? How do you determine what your items should sell for? Do you need to go by local standards? What do you charge for your time? Didn't it used to be 3Xcost?

Can't wait to get your input!

[Paige]

Oh Kris what a good thread. I embroider on a machine and there is an industry standard for it. With that being said for the clothes I make I got to ETSY and Ebay and make my prices so that they compare to the others. I am working some this week on things to put up on ETSY and I may lower the price a bit to just get my name out there and once I get people noticing my stuff then I will raise up my prices.

For my personal creations, the ones I create on my own, with my own patterns I will price those higher. They are custom and people will pay more for that. Make sense?

On thing I am HUGE on though is not selling yourself short and remembering that your time is VERY valuable.

[Shirley]

OK, I sell scrapbooking page kits, mini album kits and premade items. My prices for a 2-page kit range from $9.99-$19.99 depending on how much is in the kit and how much stamping or handling I did to individual pieces in the kit.
For my handmade minibooks..if there is stitching and tons of embellies, I charge at least $30-$45...I have one on my website that is $85 because it is a TON of pages, loads of embellies and stitching on every page.

I just guestimate....I know I am not any help, right???

[Kris]

Thank you, Paige and Shirley, for your info. I appreciate it!

[linda g]

I charge retail value plus a certain amount depending on the time. For page kits - I try to keep the supplies to around $2-$3 in my cost (per Karen the master) and I charge $10 for them. I guess it would depend on what you are selling too

[Beth Kingston]

my hubby showed me an article in a woodworking magazine that talks about how to do it - but says it is a five-step process: materials, labor, overhead, profit and selling expenses. i'm paraphrasing - but here is what it says:

matierials - actual cost of product

labor - calculate by the hour

then multiply your materials and labor by 15% to get industry standard for overhead

add 10% more for profit - and round up to the nearest dollar

selling expenses -add another 15% to cover things like booth fees, advertising

THEN -if you are selling it at a store they mark it up usually 100%

WHEW!

[UnKit]

Pricing is the big trick. What will the market bear? Are your costs in line? Will the mark up/margins be worth your while?
so factors:
your costs
comparison prices of similar items
price points
Pricing marketing. What does your price indicate about the quality of your product? Could you be pricing too low and sending a message about the quality of your work?

A very tricky and complicated subject.