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  • Pricing your work

    How do I price Fascinators? I know the normal formula is Material + Overheads + Time + Profit = Wholesale Price but How would you price them?
    Website: www.i-m.co/gsdesignscrafts/gsdesignscrafts
    Facebook: www.facebook.com/g.sdesignscrafts Email: [email protected]
    "A world without hats would be a very boring world indeed" Gavin Spence (me)

  • #2
    I don't think there is any one 'normal' formula.

    There are lots of different formulae, that is certain, any of which might work for you, or for someone else ...


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    • #3
      Hello Price is what people are willing to pay for it. See what your competitors are selling them for. Consider what you what be willing to accept and remember your effort and time spent.
      My doll website: dollsfromaileen.com
      My origami blog: aileenedwinorigami.blogspot.com

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      • #4
        Originally posted by Aileen Edwin View Post
        Price is what people are willing to pay for it.
        Exactly that.

        And never forget that different people will be willing to pay different prices.


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        • #5
          Have you worked out your wholesale price based on the formula you've used in your post? Double it and then you've got a retail price, but like Eena says, there are a whole load of variations, some retailers expect to sell their goods at 2.5 times the wholesale price, others expect less particularly for handmade items from small businesses rather than huge orders from large companies.

          If you work out your price using your formula and you find people aren't willing to pay that price, you have to think about why that is and what you need to change. E.g. just changing the price is not the solution, you have to think about how you can reduce your costs, market your goods at the right income bracket, make sure the quality matches the price (both materials and craftsmanship), ensure you're communicating to the customer why it's worth the price you're asking.

          It's important to keep an eye on the competition but just be careful to scrutinise how their product compares with yours and find as many different competitors as you can to get a broad view of the market and see where you fit.
          Happywrap - Reusable Fabric Gift Wrap

          Website: www.happywrap.co.uk

          Facebook: http://www.facebook.com/happywrap

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          • #6
            I agree that it's important to find a buyer who will buy the product for the price they want rather than reducing the price. Someone may like it but would not pay that much but a higher end buyer would. Firstly decide who you are selling to, which will help you to decide the quality of materials and expenses.
            My doll website: dollsfromaileen.com
            My origami blog: aileenedwinorigami.blogspot.com

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            • #7
              Originally posted by G.SDesigns View Post
              How do I price Fascinators? I know the normal formula is Material + Overheads + Time + Profit = Wholesale Price but How would you price them?
              I consider 'Normal' formula (not that I use a formula) to be (supplies+overheads+labour at appropriate hourly rate) =cost price
              cost price x 2 = lowest possible wholesale price
              wholesale price x 2 or 2.5 or 3 or even more = retail price

              That assumes no selling fees; however selling retail will almost always incur some additional fees. You must not forget to factor those charges into your pricing, too.

              Other formulae also exist.

              You can use whatever formula you want, or none at all, and set your price wherever you like, no-one will come to arrest you, but bear in mind that your target market is your most important factor in getting your pricing right, and the better you know it, the better you will be able to judge what they want to buy.

              The other thing to remember is that for hand-made items, price is NOT king. People buy hand-made for a whole host of different reasons and if you can find out why they are looking to buy hand-made in preference to mass-produced, you will have a very valuable tool.


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              • #8
                "Price is not King"
                This is quite important, people will buy because they like it first and can afford it second.
                Perhaps you should look at what I call "perceived added value". That is do something that makes the whole item a little bit more valuable (think "wantable")at little or no added cost and for little or no added charge to customer. eg. A lot of turners make mini trees for Christmas decorations, I attach silk to mine for hanging as opposed to cotton. On other bits I attach ribbon so the whole thing just looks better quality, and I suppose in a way it is but the cost differential is minimal, it still takes the same amount of time to tie whatever I use.
                Twitter:johnbaitken
                website:The bowler hatted turner.co.uk
                Facebook:John Boyne-Aitken

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                • #9
                  Originally posted by Thebowlerhattedturner View Post
                  "
                  ..."perceived added value"... more valuable ... "wantable"... little or no added cost (to the maker) and for little or no added charge to customer ... silk ... as opposed to cotton ...the cost differential is minimal, it still takes the same amount of time... whatever I use.
                  Yes yes thrice yes!

                  Before fiddling around with pricing formulae, I think the OP needs to visit upmarket High Streets with independent shops to see what is available at what sorts of prices, go to Ladies Day at the races and attend Wedding Fairs.

                  She must also know precisely what it costs her to make her fascinators.

                  I sell a popular item which is currently giving me a generous profit. If I were to use the previously-mentioned pricing formulae, (effectively cost price x 4) retail would be around £15.

                  These items fly off my stall at £25 - £45, so why would I want to use formulaic pricing?

                  It's a no-brainer!


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                  • #10
                    After working out the prices using the system shown on one of the links seen (somewhere?)it became apparent that there can be no one system to use. I know that some turners price their bowls as 2x or 3x the diameter in inches x the thickness in inches. So a 6 inch bowl 2 inches deep comes out at £24 or £36. Worked out differently I can turn and finish a 6 inch bowl in an hour =£20 +material costs +overheads so it's not far out, but when I make a 6 inch segmented bowl it could take me 8 hours just to cut up and glue the wood and they sell for considerably more than £24!
                    Twitter:johnbaitken
                    website:The bowler hatted turner.co.uk
                    Facebook:John Boyne-Aitken

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                    • #11
                      The basic question is: do you want to compete on price? Then undercut everyone else.
                      Do you want to compete on quality? Then set your own price to reflect that quality.

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                      • #12
                        Originally posted by Pearlescence View Post
                        ...set your own price to reflect that quality.
                        Definitely agree with this. Undercutting others is a race to the bottom, the only way is down.
                        Happywrap - Reusable Fabric Gift Wrap

                        Website: www.happywrap.co.uk

                        Facebook: http://www.facebook.com/happywrap

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                        • #13
                          Thanks for all your help, this has certainly helped me, I am just starting up in business in Ayrshire and find it difficult to price things Thanks Gavin
                          Website: www.i-m.co/gsdesignscrafts/gsdesignscrafts
                          Facebook: www.facebook.com/g.sdesignscrafts Email: [email protected]
                          "A world without hats would be a very boring world indeed" Gavin Spence (me)

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                          • #14
                            Love this thread. Entrepreneurial questions are so interesting. Business decisions really fire up my imagination... LOVE the idea that being the cheapest is not the best strategy.
                            "Conventionality is not morality" Charlotte Brontë

                            https://www.facebook.com/tornupart

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                            • #15
                              You should have a look at my post in General, Hey Crafters, it has some pictures of my work
                              Website: www.i-m.co/gsdesignscrafts/gsdesignscrafts
                              Facebook: www.facebook.com/g.sdesignscrafts Email: [email protected]
                              "A world without hats would be a very boring world indeed" Gavin Spence (me)

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