The May evening, The Art of Pricing was a fantastic night and as always, was filled with lots of great information. The discussion based format of the night allowed everyone to share their ideas and experiences and it was discovered that on the whole, people don't put enough self worth on their creations.
So to help you in deciding on pricing for your wares, we have put together the following top ten tips for you all.
Tip 1
Your brand is important - the better your brand image, the higher the perceived value of your products. Work on building this all the time and it will pay off in the long run.
Tip 2
Where you sell your products contributes to the perceived value of your products. If you want to sell high end products, only sell in high end places.
Tip 3
Friends and family are great people to ask for honest feedback on what you should/could be charging for your products. Ask them what they would be prepared to pay for your items and ask them to be honest. Often asking people that don't make things, can provide a surprising answer.
Tip 4
Don't forget to consider your target market - Consider tailoring your products to suit them while finding the artistic balance
Tip 5
If you intend on retailing, remember that most retailers will mark up your products 100%. Expect to sell your products for half what you are retailing them for.
Tip 6
Your wholesale price needs to cover ALL of your expenses. If it's cheaper to make more of your product at one time, then having a minimum order quantity for retailers is a good idea. Effectively they are buying in bulk, so they expect to have to buy a minimum quantity.
Tip 7
There are lots more costs involved in making your products than you may even think about. Here is a list of things to remember when working out your costings:
- Components used to make the products - not just the main materials, but things like thread, glue, buttons etc.
- Tools (Assets) - Scissors, Sewing Machine, Craft Knives, Computer
- Labour - your time is valuable
- Packaging - tags, labels, bags, postage supplies
- Selling Costs - market stall fees, travel costs, online success fees
- Overheads - rent, internet, phone, electricity
Tip 8
Your skill is your most valuable asset. Remember that not everyone can do what you do, and the ones that can will still do it differently - your style is unique. Think about all the time, money and effort you spent on trial and error perfecting your product. Others will experience these same costs!
Tip 9
Sometimes you will make products and then discover that it isn't viable - that is okay. You need to be able to recognise this and it's okay if you still want to make them, just so long as you aware.
Tip 10
There is always going to be products that customers aren't willing to pay big bucks for. Remember to have both high profit and low profit margin products.
Pricing is such a broad and difficult topic, that the above tips only just touch the tip of the iceberg! If you have any other useful tips or any helpful links please feel free to share them. Us crafters have to help each other out, so together we can raise the profile and perception of handmade in New Zealand :)
Kylie & Jess
xx
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