what am I worth?

This Blog http://dreamweaverkalla.blogspot.com/ from Geri stuck with me today. I have been struggling to put a price on my work too, as so many other artists have. There are several formulas to price your work.

some sound like this:

  • Add up the cost of all materials you used in creating a painting.
  • Then add up the number of hours you worked on the piece.
  • Then come to a determination of how much your time is worth (something like $10-$50/hr or some other reasonable number).
  • Then add the percentage of cost for your studio, electric, water, etc., that was used during the making of the artwork.
  • Then add 10% for good measure (there are things which I am overlooking here, you’ll have to decide what your costs are).
on a different blog I read this :

 before you address how to price your crafts, you have to be able to answer the question, “How much is the customer willing to pay?”

Your first step in determining a pricing policy should be to do a survey of what craftwork similar to yours is selling for in each market like the one you are selling in.

For example, what does jewelry like yours sell for at craft fairs? in stores? in galleries? in mail order catalogs?

Once you know what prices the market will bear, look at all your expenses and see whether you can profitably produce and sell the piece. 

For example, what does an item like yours sell for at craft fairs? in stores? in galleries? in mail order catalogs?

Once you know what prices the market will bear, look at all your expenses and see whether you can profitably produce and sell the piece.

The following formula tells you how many dollars you have to get back for a given piece.

COST OF MATERIALS
(Add up all the little and large materials that go into each piece. Estimate costs for paint, fabric and other items you only use small amounts of.)
+
COST OF LABOR
(Pay yourself a decent hourly wage. Example: $10 hour. Determine how much time goes into producing each piece and include the dollar value in your pricing.)
+
INDIRECT COSTS
(Overhead expenses like rent, utilities,  insurance, phone, etc.. Since most of us work from home, you may have no overhead costs.)
+
PROFIT (optional)
(Amount you expect to earn
beyond the cost of your labor.)
=
MINIMUM PRICE
(Amount you must recover from
your time and expenses)

Once you learn the minimum price / dollar amount you must recover from each piece and what the market will bear for work similar to yours, you know how to price your craft products.

Setting a price for crafts is important because otherwise, you may lose money. You can always increase the perceived value of a craft item through packaging and promotional material, which allows you to confidently ask and receive higher prices.

so yeah, there is that formula out there. But still I struggle with my pricing, every time I make a new different item.  Plus how do you make clear to a costumer that you used a different material that is more expensive than the other one you used on a similar item, but now is more pricey and the costumer doesn’t know the different values between the material you worked with?

I liked what I read in this blog                      http://yourcraftbusiness.com/Your-Craft-Business/pricing-handcrafted-work.html

 Some caveats:
You will never get paid for all of your labor
There will always be someone who will sell cheaper than you
Every venue has its own price points
Every shop, store, show and gallery will have a clientele that will pay well for at least one of your items and feel another is too high.
If you mark your craft item too low, people will think there’s something wrong with it.

Right now I am comfortable with my prices in my shop. When the prices of shipping and handling go up again that will be  a new issue.

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4 thoughts on “what am I worth?

  1. Thank you so much for the link love for my Blog!

    It’s very difficult to find the right price for your work, especially when you hear someone tell you “I can get this at the mall for half this! Why bother with YOU?”

    So few people understand just what it takes to create – and think they’re getting a great bargain when they buy a cheaply manufactured, mass manufactured junk mockery of the item you put your heart and soul into creating with your own two hands.

    I hope my blog opens eyes and lets buyers see what it is they’re really doing, and how much it’s hurting those who are HONEST about their work!

    Thank you again for spreading the word, sharing the love and supporting the cause!

    ~Geri
    http://dreamweaverkalla.blogspot.com – Dream Weaving Blog
    http://www.zibbet.com/dreamweaverjewelry – Dream Weaver Jewelry (and more!) Zibbet Shop
    http://www.facebook.com/DreamWeaverJewelry – Dreamweaver Jewelry (and more!) on Facebook

    Like

  2. you are so right when you say we struggle with our pricing. I think we all do, especially these days. And there are so many ways to figure pricing as well. Nice post!

    Like

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