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How To Price Your Crafts
Friday, February 27, 2009
Posted on 6:27:24 PM | 11 Comments

From About.com

Deciding how much to charge for your crafts is an important decision. While ultimately you must decide what your products are worth, there are a few steps to follow that can help.

Difficulty: Average
Time Required: 30 minutes to several hours
Here's How:


  1. Decide how much you (or your employee) will be paid per hour to produce products.
  2. Multiply this hourly rate by the number of hours a week that will be spent producing crafts.
  3. Write down this figure, this is your weekly cost of labor. (If you need to make $10 per hour, working 40 hours per week the weekly cost of labor would be $400.)
  4. Calculate the total cost-of-supplies needed to make one finished product.
  5. Determine how many products one person can produce in a week.
  6. Multiply the cost of supplies-per-piece by the number of products produced in a week. (If your cost of materials per piece is $1 and you can produce 100 products a week, the figure would be $100.)
  7. Add this figure to your weekly labor costs. (In our example here that would be $400 + $100 = $500)
  8. Divide this figure by the number of products produced in a week. (So $500 labor/materials divided by 100 finished products a week would be $5.00 per piece.)
  9. If you will be wholesaling your products, multiply this number by two. (Which would give you a retail price of $10 per product.)
  10. Compare this cost to similar products on the market.
  11. If your price is more than similar products, you may need to reduce it by cutting hourly price, finding less expensive supplies or by increasing your production time.
  12. If your price is significantly less than similar products, you may want to consider raising your price.

Tips:


  1. Usually one piece will not use an entire supply unit. For instance an 8-ounce bottle of glue may make a hundred pieces. In this case, calculate how many pieces can be produced from a supply and divide by the cost of the supply.
  2. This equation does not take into account any expenses other than labor and materials. You can figure in weekly costs of any other business expenses that you may have and add it to the weekly labor and material cost.


Corat-Coret, Nota Penting Saya | 11 Comments
 

kak zaa says ...
  haii maya...
salam kenalan...
i dah add link web u ke my blogspot.
harap kita boleh tukar tukar link.
tq.

Reply | Posted on 3/4/2009 9:01:45 AM
 

BabyInc says ...
  Hai Maya,

I am totally agreed on the pricing of handmade craft. So sad when some people priced their product too low, and just because wanna compete with others. When you are selling too low, do you produce a high quality product?

But some buyers couldn't even evaluate on the quality and only goes for cheaper one. So sad..

Reply | Posted on 1/24/2010 2:14:16 AM
 
maya replies ...
  yes.. that's the point..

sometime they forgot about the cost of labor. forgot that it's a very time consuming.. and forgot about the value of creative work.. they just calculate on the cost of material.. sigh

Reply | Posted on 1/24/2010 7:05:21 AM
 

BabyInc replies ...
  I am expressing my frustration thro my blog, and I borrow ur article to emphasize on how important it is to VALUE your handmade..

I dah demotivated tgk ths cendawan after hujan blogs yg offer such ridiculous price..tak pe la, to others yg appreciate beauty of handmade they will come back..kan?

Reply | Posted on 1/25/2010 12:25:08 PM
 

MisFyd says ...
  This is what I was worrying for quite sometime. The pricing of my handmade. I scared that ppl won't buy my handmade as it is expensive. But then to think about it, it's my own design/idea & it takes my precious time to make them one by one. Yup labor cost + originality is a must in pricing your handmade.

I was scared to price my handmade as I don't want to kill the market out there just like what is happening to BabyInc. Sorry to hear it happens to you BabyInc.

Lepas byk2 fikir, research skit2,kira2, managed to decide my pricing & I hope that my pricing won't effect the the others who is also doing similar crafts + who are real & passionate crafter.

I also hope that more Malaysian will appreciate the value+originality of handmade stuff.

Reply | Posted on 2/17/2010 6:06:34 PM
 

Roslan says ...
  panduan yg berguna utk kami. tq maya..

Reply | Posted on 6/14/2010 8:40:56 PM
 

BlessingBlossoms says ...
  Hi Maya,

I am glad i found this blog, as a newbie in craft like me, this article really giving me very good advise on how to do the pricing of my product. Thank u once again Maya.

Reply | Posted on 10/13/2010 4:38:48 PM
 

aruz says ...
  hi maya...
saya baru dlm dunia selling my craft. Baru2 ni rezeki crafting baru bermula...alhamdulilah...
first time decide price memang pening kepala... sampai saya bergaduh with my hubby to decide price... after saya baca this azimat yang berguna... baru lega rasanya....
quality + price + services = tiptop

tq
kee-iigifts.blogspot.com

Reply | Posted on 12/19/2010 3:42:56 AM
 

zu_e9 says ...
  thanks for this tip akak..
baru la rs lega bila nk letak price untuk my craft..huhu..
mcm kt aruz kt atas tu :
quality+price+service+= best tip top

10 Q..

Reply | Posted on 2/2/2011 12:13:03 PM
 

idyll art says ...
  quality tu yg penting yg kita kena maintain....that is the beauty of art...esp those fully handmade...priceless beb!! kita wat ngan ikhlas...stick to what u think best...i'allah semua ok...

Reply | Posted on 3/31/2011 11:03:09 PM
 

imbeadable says ...
  I do agree with this. Some just under-charge their craft to stay on. Indeed, correct pricing with correct attitude keeps business running. :)

Reply | Posted on 7/25/2013 7:16:31 PM
 

 
 
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