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Pricing your crafts - what do you charge for time?

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  • Pricing your crafts - what do you charge for time?

    Hi

    I know pricing is an age old debate. It's something I find really difficult. Working out the material cost is easy. I was just wondering in calculating your prices, what do you 'charge' for your time per hour?

    Thanks

  • #2
    The absolute minimum should be the minimum wage. To be fully compensated for your time, you should also include your overheads.

    Overheads covers the portion of electricity, heating, telephone, broadband, promotional materials like leaflets, stand costs for fairs, insurance, petrol and running expenses on a car or public transport, etc. If you purchase any equipment then it's cost should be depreciated at 25% per year on a reducing balance.

    To work out your overhead per hour you must add up all your overheads for a year (estimate if necessary) and then divide by the number of hours you work per year. This time covers everything from making items, talking on the phone, obtaining supplies, attending fairs, etc. You will be shocked at how the hours add up.

    That is the basis you should be working with. Unfortunately many crafters undervalue their skills or feel they cannot charge enough or worry about mass produced crafts arriving from low labour cost areas. You need to decide how important the earning money side it for you and then cost on that basis.

    Roger

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    • #3
      To be honest, I haven't really thought much about my time or costs involved in pricing my items - more it's about pricing in relation to similar things out there, and what I think others would see as a reasonable price. I hope that's not a bad thing...!
      Coryographies on Etsy (bookshelf, tea, and sushi jewellery)
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      • #4
        Originally posted by Coryographies View Post
        To be honest, I haven't really thought much about my time or costs involved in pricing my items - more it's about pricing in relation to similar things out there, and what I think others would see as a reasonable price. I hope that's not a bad thing...!
        You do need to ensure that you are not losing money and raw materials and electricity can add up. I now no longer worry too much what others are charging but go with what I know I am worth. If your product is of a high standard hopefully the right customer will appreciate that, there is no way as a crafter you can compete with mass produced tat so we have to elevate ourselves above that and price correctly both for ourselves and out of respect for our fellow creators.

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        • #5
          Totally agree with Caroleecrafts and keystamp.
          So many projects, so little time

          http://folksy.com/shops/eileenscraftstudio

          http://www.facebook.com/#!/pages/Fol...92535377497013

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          • #6
            I have a base cost of £10 an hour. As far as how much equivalent thin gs cost in the market as so many imports can be had for silly money I see little point in doing it. As a semi professional crafter I want to earn money not just practice my craft as a hobby. I am afraid that I, like many others, get a bit irritated when I see other people selling their work for a price that hardly reflects cost of materials at shows and feel that we all should reflect our time, expertise and skills in the prices we charge.

            Pete
            "Where the spirit does not work with the hand, there is no art" ... Leonardo Da Vinci
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            • #7
              I try to work on pricing by adding a rate of £10 per hour making time to the cost of materials.
              I would love to earn £10 / hour but this rate is to include all the other business costs too.

              I do "fiddle" this figure if I feel the price is way out - often if I am experimenting with a new idea I take a big chunk off the time as the theory is that I will do it a lot faster next time!

              I'm another who finds it difficult when others are so clearly not charging anything like a realistic price - I often sell at the same event as someone who uses the left over fabrics from curtain commissions she has (fabric for free) and reckons that "no-one wants to pay for time" so only charges a nominal few quid. My only comfort is that she doesn't actually seem to sell much more than me - so cheap prices can't be everything.

              Catherine
              CatkinJane - Handmade Material Things
              http://www.catkinjane.co.uk/
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              Blog http://catkinjane.blogspot.co.uk/

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              • #8
                There's also a great deal to be said for the psychology of pricing - if it's very cheap, people don't think they're getting quality. It's weird, but that's apparently how we work, so something extremely cheap, no matter how well made, might be seen as just tat, whereas something that's just a bit pricier might have more added value in someone's mind.
                www.darkflightsart.co.uk

                https://www.facebook.com/pages/Dark-...63232150439256

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                • #9
                  Originally posted by DarkFlights View Post
                  There's also a great deal to be said for the psychology of pricing - if it's very cheap, people don't think they're getting quality.
                  In normal circumstances the higher the price, the less is sold. The example of sales numbers being equal at lower prices shows price is not a factor in the decision, so curtain fabric off cut items might not appeal, hence the lower sales.

                  There is also what is described as the reverse demand curve. When the price rises, so does the demand. This is when a premium product becomes fashionable to purchase, e.g. designer labels or handbags. It is very difficult to create this situation, but price does not come into the equation. If a celebrity is seen with an item, then the demand can rise expontially. Unfortunately for most crafters, we will never experience the sales side of a product like this.

                  Roger

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