Once you’ve chosen the product or collection of products that you plan to sell, the next step is to figure out how much it will cost you to produce it and how you should price your product. There is often a fine line between pricing yourself out of the market and working for nothing! As a general rule of thumb, the more unique and one of a kind your item is, the more liberty you will be able to take in pricing it. If you are planning to sew an item that is more widely available at low cost, the less you will be able to play with the pricing.
Points to consider when pricing your craft:
- Figure the total cost of all components in your product
- Time yourself when making this item
- Can your product be made production style, thereby cutting down the time?
- How much would you like to be making per hour?
- Do you plan to sell wholesale or retail only?
After you have figured in your total cost and time per hour, you will want to try to add at least another 50% if not more to cover such costs as fair fees and commissions, your workspace overhead and other miscellaneous costs.
As I mentioned before, if you are making potholders or children’s clothing, you will have less leeway to adjust your pricing and will need to stay within certain price margin for customers to buy from you. If, however, you create a more one of a kind textile art, you will be able to add in that “art” factor when figuring your pricing and will be able to test the waters to see what price your work may bear.
Before deciding your final pricing structure for your products, go out to your local street fairs and check out your competiion. You may want to aim for somewhere in the ballpark of similar items that are available to the public.
Be sure that you will be able to make a decent profit on your crafts before settling on the product that you want to make. You don’t want to put in a lot of work and find you can’t make any money on it!