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  • Pricing

    [content removed]
    Last edited by waitingformagic; 08-07-2009, 10:17 AM.

  • #2
    Before you agree to make anything I reckon you need to sit down, work out what it cost you to make, to at least come to a final price that will cover what it cost you to make.If they dont agree, dont make it.

    It may be a hobby but its also a money maker.
    Give pals a few pounds off but not so you dont make a good profit.And as they are friends they shouldnt expect you to sell without a proper profit.

    Dont forget your work could be a one off, so why not charge more than shops do.

    Im not helping much am I, I just seem to be ranting.

    With my work I work out what it cost me,think about what its made of, think how much Id pay for it...then scrap that as Im a skinflint and dont pay much...then I think about th amount my customers would want to pay.Does it have the wow factor?etc

    I dont tend to include my time to source components or time taken to make the item as I like doing it.

    But basically agree a price first.

    Rant over, sorry for not helping.
    https://folksy.com/shops/GrimmExhibition


    http://poisonedapplecraftuk.blogspot.co.uk/

    Poisoned Apple Theatre - Handmade Crafts on Facebook

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    • #3
      The way I do it is double the actual materials cost and add labour (and overheads)

      So if the materials were £2.32, double that to get £4.64, if you charge £10 per hour for labour & overheads and they took you 15 mins that's £2.50 then you should charge 4.64 + 2.50 = £7.14 which I would probably round down to £7.00. I would make overheads an exact figure rather than a %age. You may decide to charge less for labour, that's up to you. Then you can give say 10-20% discount for friends and family if you wish and you won't be making a loss.
      Elinor
      x

      My Misi page
      Follow me on Twitter

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      • #4
        I work at £5 per hour for simple stringing, if it involves wirework or weaving, then it's £10 per hour as that takes more 'expertise'

        I take into account the cost of the materials, then my time, then tweak it a little, then think about it, does it look like it's worth that? is it worth more? would I pay it? then tweak some more, and then when I have a figure I am happy with, that's the price.

        Dead scientific isn't it

        I factor in p&p for items on my website, probably not the full cost, but I do offer free postage (due to the constraints within the website), depending on the fair, sometimes I add a little extra, and I have been known to be sweet talked down by a little un spending their pocket money on mum.

        With the items that are currently out on sale or return, I just take into account the cost price, a little something for my time, decide what the minimum I would be happy with is, and then there's my price.... that way it allows for the seller to add their bit without making the thing unsellable.

        Not sure if any of that has helped
        www.jos-beaded-designs.com

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        • #5
          My general pricing formula is

          3 x cost of materials + my time @ £12 per hour. (I used to work at £10 hour but I work pretty quickly now so decided to put my price up a bit to reflect this.)

          Sometimes I'll add a bit more if I think the piece looks nice enough, sometimes I take off a bit if it looks too much money for the item. Oh, and I occassionally add a couple of pounds to allow for my OH to "do a deal". For example, if I want £20 for an item, I'll price it up at £22 as we work a regular market and a discount of £2 is often the difference between a sale or not.
          Auntynet

          Step-daughter's website selling hand dyed sock yarns www.knotanotherknitter.com




          ~ * ~ * ~ Of all the things I've ever lost, I miss my mind the most! ~ * ~ * ~

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          • #6
            Interesting thread as I have always been told I under priced. So I had a little look into pricing and found there were several ways of doing it..
            Firstly was to take into account the material costs, labor costs and overheads. This is time consuming to work out (well, I found it to be).
            The other was to take the material cost and treble it (then round up to nearest £) for your price.
            I use the second method as it's quick and I have found they usually come out about the same.
            I also have to think about 2 markets for my items; firstly website orders where I include a gift box and p&p in the overall price; then stalls where I do not (well, organza bags), and sell gift boxes separately. I tend to add £1-2 (dependent on weight) to the website item to cover this.
            I have been told my prices are very reasonable, so may up them a little, not sure!
            Sorry if I have not helped and this is long winded!

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            • #7
              Originally posted by Delta View Post
              does it look like it's worth that? is it worth more? would I pay it?
              That's a very good point because we can use these formulas to work prices out but in the end it will come down to what someone is willing to pay for it.

              If something takes you a couple of hours to make and because of that we add £14-£20 onto the cost for time and labour that could well push it out of people's reach, pricewise. I think we have to be realistic about the pricing because to be honest most people buying won't be thinking that a huge chunk of that cost is for time and labour, they just look at something and weigh up if it's worth that price and do they want to pay that for it.

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              • #8
                I think you have to look at the bigger picture here, a pair of earrings isn't going to make you a lot of profit, but charging more than £8 probably isn't going to get you a sale. Necklaces, and to some extent bracelets give you a larger profit margin due to higher materials cost, more labour and also people will pay more for these items. If all you sell is earrings you're not going to make a lot of money unless you make large numbers and sell them all.

                You've also got to consider your market. If you're selling to friends and family, small fairs, parties, Etsy, Misi etc you can't charge as much as you would say selling to a shop.

                Are you really only calculating based on minimum wage, that's only £5.73 per hour?
                Elinor
                x

                My Misi page
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                • #9
                  I can also recommend this book for great advice re pricing and marketing your jewellery. It's American, but the principles are the same wherever you are and it's packed full of very useful advice.
                  Elinor
                  x

                  My Misi page
                  Follow me on Twitter

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                  • #10
                    Originally posted by waitingformagic
                    Hmm so you have 1x cost of material covering the obvious... So do you assume the other 2x costs cover overheads etc plus adding more stock?

                    That theory makes my earrings £11 (which already incl postage.)

                    Can I charge £11 for SP/tibetan plus precious stones?? For what they are, it seems a lot.
                    No you couldn't charge that - I sell sterling/gemstone earrings for half that much but you have to bear in mind that I work quicker than you and I do sell my jewellery for a living so I buy my beads in bulk at wholesale prices. Like someone else says, what works for one doesn't necessarily work for another. I also sell my stuff on a regular market and I can't charge the same prices that customers would see at a craft fair.

                    Thats my pricing formula and it works for me. If I used my formula to make a similar pair of earrings to yours, I guesstimate that it would cost me about 50p for componets and less than 5 mins to make. Therefore I'd cost them up at around £2.50 - £3.00 to sell on the market stall but if I was selling at a craft fair then I'd probably put a £5 price tag on them.

                    As for my other overheads, how much electricity and gas would I be using in the 5 mins it takes me to make a pair of earrings? I do think that you can only go so far with "taking things into account" when you're working out your costings and IMO 3x costs is quite fair - there are times when I have felt guilty about mulitplying my costs by 3 and have thought I was being greedy.

                    PS - I don't understand what you mean by covering the cost of adding more stock? Surely the first 1 x cost is just that?
                    Last edited by auntynet; 15-02-2009, 10:52 PM.
                    Auntynet

                    Step-daughter's website selling hand dyed sock yarns www.knotanotherknitter.com




                    ~ * ~ * ~ Of all the things I've ever lost, I miss my mind the most! ~ * ~ * ~

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                    • #11
                      Originally posted by waitingformagic



                      Can I charge £11 for SP/tibetan plus precious stones?? For what they are, it seems a lot.
                      I wouldn't think so but for sterling findings you could get away with it. I have just googled a bit and just buying sterling findings in small amounts I got the cost to under £2 a pair using semiprecious gem beads.

                      I got very similar Tibetan charms in bulk buys of 50 items each very cheaply.

                      for sp I don't sell any of my earrings for over £5. I only use sterling with semiprecious beads and I find people will pay the extra for it.

                      sorry it's late and my head in a fuss does that make seance?
                      "You've Got to Keep Your Mind Wide Open" - AnnaSophia Robb
                      my Folksy shop Goldy'sclearoutblog debaynewebdesign


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                      • #12
                        I have been thinking some more about this, and I tend to make earrings as a 'rent maker' I have currently been running with only certain ones in stock.

                        My Sterling charms with Swaro beads have been selling for £8 (they are blingy)
                        Swaro on SP have been selling for £6
                        I made a load of glass, gemstone, bone earrings, pretty simple and was selling them at £3 a pair or 4 pairs for £10, (at one fair it was the other way, £4 a pair or 3 for £10)
                        My angels with glass skirts were sold the same as above, and my shell earrings also the same.

                        My woven earrings were £6 (takes just under an hour to make a pair)
                        My wirework was about £7 a pair

                        And I have loads of acrylic earrings at £1 a pair,

                        This is cos I mainly use left overs to knock some earrings together, the only ones that are not leftovers are the wirework, woven and the Sterling charms.

                        I have only ever been asked for a pair of earrings once, and that was to match a Tigereye woven bracelet, I just put some 8mm beads on earstuds and charged her a fiver.... but that did also include postage to the USA.
                        www.jos-beaded-designs.com

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                        • #13
                          This is how I did it .

                          Looked at my competitors prices, undercut them, got a customer base and a reputation for being cheap then crept the prices up. Wicked, eh?

                          Actually I did spend hours doing tables of maths and the bit people forget to factor in is the time you take to sell your stuff - so either hours chatting on line or the day you take off to run your stall. You should pay yourself as if you we a shop assistant.

                          Then there's your customers. No one gives their kid a fiver to spend to keep then quiet. My kids' stuff has a ceiling of £2 with lots for £1 or 50p.

                          And yesterday the family had a big discussion about selling something that is actually a work of art. I was saying that no one would pay £100 to buy it off me at a fair or market but they would if it was displayed in an boutique or art shop......no how to break into that market?

                          AnnieAnna

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                          • #14
                            Round it up to £7, give yourself a 5p bonus.
                            https://folksy.com/shops/GrimmExhibition


                            http://poisonedapplecraftuk.blogspot.co.uk/

                            Poisoned Apple Theatre - Handmade Crafts on Facebook

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                            • #15
                              Oh no! The argument about whether £6.99 sells better than £7.

                              AnnieAnna,
                              it's bad enough hording fivers to give as change. The thought of hoarding pennies.......

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