How to: Pricing Your Handmade Goods & Products
One of the most frequent questions I hear from crafty sellers new AND old is “How much should I be charging for this?”
A lot of beginners make some common mistakes and misjudgments, so here are some things to consider when pricing your goods, as well as a formula to figure it all out.
Here’s a big beginning mistake I see all too often: Pricing your item way below “competitors” (which I prefer to think of less as competition and more as similar shops, but that’s for another time). The reality is that pricing too low can actually discourage sales because people assume it’s of poor quality.
Another mistake is thinking of yourself as the target customer. If you base your pricing on what YOU can afford, you’re probably under pricing. Guess what? I can’t afford my own stuff. I’m what you call a “starving artist”. I can’t afford to buy designer clothing. Other people can, they just aren’t me.
Handmade goods mean attention to detail, quality craftsmanship, and a significant amount of TIME and SKILL, all of which mean HIGHER PRICE. When you’re pricing your items, I want you to repeat to yourself that YOU ARE NOT WAL-MART.Read more…