How do I Price My Handmade Design?
There is one question that I am asked all of the time.
This is one that everyone needs to understand and know the answer to when beginning to sell online or offline. On the surface, this would seem to be an easy question to answer.
But this question, and particularly answering it correctly, is critical to making it worthwhile to set up and sustain an internet business so that you can enjoy a steady income stream.
Sale, discount and promotion shopping…
I’ll be honest…I have struggled with this question and its answer for many, many years! There is one thing that I have learned in all my years of experience – you have to be able and willing to not only calculate your costs accurately, but also be willing to change your pricing strategies at a moment’s notice.
Many factors that affect the pricing of your goods; some you can name immediately – but many that you have never thought about.
- Costs of your florals, container and shipping change constantly, but can be much harder to determine accurately.
- You have to be on your toes to keep up with the changes in your costs or you will be selling your wares at a loss.
- If not priced properly, your business will become a non-profit business…when you didn’t intend for that to happen!
Other factors to consider when you price your goods are harder to calculate.
Things like the economy in your area, your customers’ buying habits, the exclusivity of your products, the quality of your products, whether you have competition near you or not. We’re just scraping the surface of things that can affect your pricing strategies.
I began many years ago writing down the cost of everything used in my wreaths.
This can apply to any craft or handmade item that you make for sale.
I have many small notebooks where I have calculated costs of my wreath and floral desings. Here is a basket of some that I have saved.
Each is filled with 400 pages . This basket is not nearly all of them – I have many more!
Your questions about pricing your goods, as well as a host of other factors you have probably never thought of, are explored, discussed and answered in “Best of Nancy” Facebook Community site.
With these answers, you can confidently price your goods and be watchful for the factors that can change your pricing, keeping you and your business profitable!
Just remember… there will NEVER be one set answer to this issue. It changes continually – you have to be ready to move with the times as the economy changes, prices of good change and seasons of the year! Yes… seasons of the year DO affect pricing and sales too.
It is a never ending battle – one of which you are well equipped.
If things are not selling at any particular time, it’s time to go over your busines plan and be ready to adapt!