Are you just about ready to venture into selling your crafts for the very first time? Creating stocks of items to sell is one thing—but pricing them is a completely different story.
Pricing products can be a very tricky matter. Set the price too low and you might not even be able to cover your expenses. Set the price too high and you could turn off your potential customers. Here are some tips on how to determine the right prices for your crafts:
1) Get to know your market.
One thing you should do in order to avoid underpricing and overpricing your products is to get to know your market. Visit crafts fairs and keep an eye out for prices of similar products, or visit online marketplaces where similar crafts might be available. Get to know the market, and get to know your competition.
2) Don’t downplay the cost of your labor.
Many artists and craftspeople make the critical mistake of undervaluing their labor. Pricing your products so low could compromise the quality of your work due to the number of orders you have to fill. Another option would be to find ways that you could streamline production in order to make the entire process less painstaking and more efficient.
3) Include the cost of hidden expenses.
Most artists who are early in their careers tend to undervalue and underprice their work, not wanting to appear greedy. Don’t be afraid to ask for what you need. Calculate how much you average on materials per project, plus how much time it takes to create it. If you’re joining a crafts fair, you should also factor in the costs of your travel expenses, registration fees, meals and such.
4) Determine how original your items are.
Are you selling a product that many other vendors are selling? If, for example, you are selling at a crafts fair and you know that there are going to be similar products at neighboring tables, then you might want to keep your prices lower in order to be competitive. If, however, you are selling something that is new and unique, you might be able to afford raising your prices just a little higher.
Pricing your products may be difficult—but keep in mind that if you really want to survive and succeed in the business, you will also need to think like a business person.
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