SolveYourProblem
Article Series:
How To Start
A Craft Business
Price
Your Crafts : Increase Your Bottom Line
by SolveYourProblem.com
Deciding on how to price your crafts is an
important factor when beginning your crafting business. The
price of your crafts will increase or decrease the amount of
customers who will buy your crafts. The price can be determined
through several different factors, including your own calculations,
as well as the environment in which you are selling them and
how this relates to other craft businesses as well as customers.
Here are five ways to help you determine the prices that you
can offer when determining how to price your crafts.
1.
Do the math. The first step to this is estimating the amount
of time you spend making the craft, first by hour, then by
week. Decide how much you would like to make per week from
your labor. If you want to be specific, you can add in factors
such as what you need to make a living comfortably. The next
step is to add in the total cost of supplies that you use.
Add this to how many products you are making per week. Divide
the number of products produced in a week by the total cost
for labor. This will determine how much you should sell each
product for.
2.
Research Your Craft. It is always good to find out what
other similar products and craft businesses are charging for
their products. Because they are hand-crafted, however, you
should be able to go either a little above their price, or
may decide to go a little under and offer your customers a
discount. If you have a craft that you can not find anywhere
else to compare to, then find an average of similar products
to average out your costs with.
3.
Find Inexpensive Craft Supplies. If you have determined
your pricing and it is above what you would like to sell your
crafts for, there are ways to cut costs for what you are making.
One way to do so is by changing the supplies that you are using.
Discount stores often offer the same brands and quality of
supplies at a lower price. You may also want to look into places
that are going out-of-business. They usually have large sales
for you to stock up your supplies with. You can also use wholesalers
or can browse through the internet for those wanting to sell
craft supplies at a discounted rate.
4.
Make sure you are listed as a business. By considering
yourself a small business, you can apply for a tax ID that
will cut taxes off of your supplies. You can apply for a tax
ID through the government website. You can then either save
your receipts for tax time or see if certain places will take
the tax ID and automatically cut off the price.
5.
Know your target market. It’s good to determine how much
the customer will be willing to pay in relation to how much
labor time and craft supply costs are going to cost you. If
your target market is centered more on families or lower income
families, it might be important to lower your prices and your
craft supply costs. If you are selling certain items at a certain
time of year, it is also important to determine the discounts
and sales that you are willing to offer, such as during Christmas
time.
It is always important to remember
not to undermine your costs because you want it to sell. Remember that you are putting
the labor and supplies into the craft. You should always at
least make a little more than your money back. It is also important
to not over price your crafts because they are hand made or
because there are not as many available. This will turn customers
away. Despite what you know about the product and the value
that is in it, customers are usually looking for a good deal.
By doing the proper calculations and by knowing what resources
are available to you, it is easy to determine the amount that
you should be selling your crafts for. By using the right math
and knowing what to look for, you can find the right pricing
for your crafts and let customers believe that they are finding
a good deal for what they are getting.
# # # # # SolveYourProblem.com : 2007
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