Pricing Question

[kimlove2]

There are several people I work with who want me to make/sell them some items. My question is how do I determine a fair price? I don't want to cheat anyone, but I also don't want to be taken advantage of either. Some of the items I have sold people gave me more than I asked for and said I was not charging enough. Some of the items have quite a bit of time involved. Please help!

 

[Wannabefree]

The only fair way to do it is calculate the exact cost of material involved if bought new regardless of whether it was "free" or not, then add $5 an hour for your time(it's tax free, so $5 is fair wage) and then add another couple of bucks for delievery/packaging/handling of the item in question to get a base price. I do that with EVERYTHING I sell, unless I just happen up on a DEEEEEP discounted item to resell for a great profit. I just pay myself to find the deals then For example, I got a couple Blu-Ray players on clearance at WalMart today for $50 each. Regular retail is 128 each! I went midway on the price and put them on Ebay for $89.99 with free shipping. I make a few bucks because I found the good deal, and someone else gets a great product at a discount, works great for both parties. The key is to find that sweet spot somewhere in the middle of what's good for you, and what's good for potential customers.

 

[moolie]

Check for similar items (of similar quality) on sites like etsy--then charge accordingly

If people are willing to pay more, don't argue. Often people who make things by hand discount the items' true value because it is something that they enjoy or find simple to do. Others don't have these skills or the time that it takes, so are willing to pay for something unique, hand-made, and made by a skilled crafts-person.

What do you make?

 

[moolie]

Wannabefree, that works well for commodity items that you would sell on eBay, but handcrafted items or works of art can be quite wide-ranging in price.

Whatever you do, don't sell yourself short--I would sure want to be paid more than $5/hour for some work, but not necessarily for other work, so think hard about what your time and effort is really worth

And don't discount what people are actually willing to pay for what you do, fair market value has everything to do with what the market will bear. I work in an artistic field, and it is actually amazing what people will and won't pay for.

 

[Wannabefree]

Moolie, that's why I said BASE price If the market will bear more, then so be it, just like with the Blu-Rays...it took very little effort to pay for those and relist them. My "skill" is finding the bargain Skill has a price tag too

 

[moolie]

Oh absolutely!

I just think that commodities and crafts require different pricing strategies

 

[chickenone]

I wouldn't work for $5 an hour. That is kind of insulting.

 

[Wannabefree]

Oh absolutely!

I just think that commodities and crafts require different pricing strategies

This is true, but not entirely different. There is the "skill" factor in all sales. I have done both, and my techniques just kind of mesh Pricing is pricing is pricing to me, depending on how badly I want to "move" the item or items. I'm not trying to make a living at it either, some artists are, so I FULLY see your point

OP, I hope ya make a good bit of cash! And...hope our insight helps you settle on the proper price

 

[kimlove2]

I make hade crocheted items mostly. Some are special order (want a certain pattern, yarn type, etc.) Also I make hand knitted items and sewn items. I have made candles, soap, sugar scrubs, and lip balms as well. For throws/afghans I have charged $50-$75. Baby things are usually $5 per item, and baby balanket are about $25. Most people say I under charge, and I've only ever had two complain (trying to get the item for less). I don't want folks to think I'm trying to cheat them, I guess.

 

[Wannabefree]

That's where you HAVE to know the cost of material. That way you can walk them through how much it costs just for material, then how much your time and skill is worth, then see if they can figure a way to get the same item/quality elsewhere. You have to know your stuff, it's a part of every sale. To be good at selling, KNOW the product, and all the fine details.