Tuesday, May 24, 2011
A comment by Carole last week prompted me to look at the issue of pricing our handmade goodies.
Her comment was about underpricing.
I'm sure we've all seen them - the sellers who underprice their goods.
They say "it's just a hobby" or "I dont want to make much money" or "it might affect my pension" or "I add 50cents on - that's enough" or "I'd rather sell them for x than have them sitting here unsold".
But maybe it's something we all do sometimes.
Maybe because we don't value what we do enough.
Perhaps we don't really know how to price our goods.
There are many formulae around and I'm sure we all have our own favorite.
Meylah has got a great download - 10 tips for pricing your products.
I really like this because it has a few options.
I'd be interested to know what you think.
I have a different equations for different things that I make.
I make a huge variety of things. Some use expensive components but don't take much time whereas others use relatively inexpensive materials but take forever to make!
(eg knitting and beadweaving)
Some I price "up" because people are prepared to pay more for those.
So the quicker higher profit items subsidise my more labour intensive products.
Do you have a method that works for you?
Feel free to share - I'd love to hear your opinion.