In the past I have talked about this, however, in this article I am going to show you how I come up with prices for my crafts. Maybe this will help you figure out what the price of your craft should be.
I have three criteria that I use for deciding what my sale price is going to be:
1. ALL costs - I think this could be the number one mistake for crafters who are not making a steady profit - especially on a craft that is selling well. Your costs are far more than just the cost of the materials and a little bit of labor. You need to think of the costs associate with: legal and accounting fees, transportation to get materials, travel to shows, craft show registration, labor costs - everything! You need to keep an accurate account of the costs associated with running your craft show business, so you can adjust your price accordingly.
2. At least double - In most cases I would say people can get away with doubling their costs to come up with a sale price. For example, if a craft costs you $5 to produce, then you should be selling it for a minimum of $10 (or maybe $9.99). In many cases, less expensive crafts can be sold for more than double, because it is still a reasonable price for a craft. For more costly crafts to make, you might consider going just under double the cost - in order to stay in line with competitors.
3. What's the value? - I ask myself this question every time I put a new craft out on the market. How much would someone pay for this craft? In order to answer that question, I do a little bit of research. I walk around craft shows to see what other crafters might be charging for something that is similar to what I am providing. If people are purchasing a product in droves, there is a good chance the price is right - or maybe even a little low.
Finding the value of your crafts is an important element of pricing them properly. You don't want to be too high that you can't make a sale versus a competitor, but you don't want to be too low that you sell out after the first day, and your profit margin is low.
Pricing your crafts is one of the most critical aspects of being profitable at craft shows. If you do not have the right price, it affects everything from salability to profitability, and ultimately whether or not you can run a successful craft show business!
Natalie Goyette shows you how to make your craft show business profitable in her best selling ebook: Craft Show Success Secrets. Visit her site: [craftshowsuccess.com parked domain].
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