A little while ago I invited people to “Ask the Bunny” here on my blog, and by far the largest number of questions related to pricing your handmade goodies for sale. This is definitely the thorniest of areas and there is no real right or wrong … or is there?
Although I personally don’t make to sell any more, I’ve attended plenty of craft fairs in the past (as DevonBear Designs), and sold handmade items both on my website and through Etsy. Like so many people I have always struggled to put a value on my work. I wonder if that’s perhaps because we’re taught from a very early age to be modest and self-deprecating about our achievements? This then translates to us feeling uncomfortable about asking what we think is too much for our handmade creations – perhaps feeling that this is a bit like showing off about how good they are.
In some ways I think under-pricing is a worse “sin” if you’ll forgive the word, than over-pricing. Let’s face it, it’s easy to reduce your prices if something isn’t selling, but nobody has ever (in my experience anyway) suggested paying more than your asking price. I’ve been told I wasn’t charging enough, but wasn’t offered more hard cash to make up for it! And if you under-price you may be only just covering your costs (or not) and by undercutting other sellers making it harder for them to charge a realistic price for their work. But before I go off on one about this (as Rosie would say), I think it’s worth having a look at how much it actually costs to make your softie/bag/cushion or anything else…..
When you’re working out your cost price then there are various elements you need to consider:
- Cost of supplies – self explanatory
- Time taken/your hourly rate – what is a basic living wage where you are?
- Hidden costs – promotion, packaging, utilities, costs of attending shows, website costs, PayPal fees etc
Many makers are happy with the first element and price to cover those costs, but forget all about paying themselves and all the other costs incurred in making something. If you’re serious about selling your makes and achieving a profit, no matter how tiny, then you simply can’t ignore these second two elements. If you’re going to give your time away for free then you will never develop a successful crafting business. Instead of lowering your product price to compete with others – especially hobbyists who only sell to cover material costs – you will need to think of ways in which you can develop a strong brand with a good reputation, making sure that customers will see your items as special and desirable, especially if you’re not the cheapest in the marketplace.
An added complication is that your pricing should also be appropriate to your target market, and where you’re selling your products. If you’re selling at local craft fairs then you’ll almost certainly find that you have to charge less than you would online for your products to sell. People go to these events for “a nice day out” and to “pick up a bargain” whereas online there is much more awareness, thanks at least in part to sites such as Etsy and Not on the High Street, of what a fair price should be.
And finally … don’t forget to consider copyright when you’re making to sell. I know that Disney, for example, are very tough on people selling Disney-themed items without their consent. Many pattern writers also don’t allow commercial use of their designs unless you purchase a special licence, which again you will also need to build into the cost of making each item. As I don’t sell myself, I’m more than happy for you to make items from my patterns to sell – provided you have made them yourself and that you credit Bustle & Sew with the design – I think that’s only fair, don’t you?