I loved this article about handmade pricing issues. I make handmade jewelry and know that I have underpriced many items. I began making jewelry for some party favors that quickly turned into a new hobby, which then developed into a full-time job and is now a part-time beading obsession after I get off my actual job.
10 Things You Shouldn’t Say When Pricing Handmade Items
- I don’t think people will pay that.
- I worked out how much I should charge and it was a ridiculous price, so I made it lower.
- I made it ages ago so I just want it out of the house.
- My friend says this is the price they would pay.
- I feel like I’m ripping people off if I charge more.
- It didn’t take me that long to make.
- I just enjoy making it, I don’t care how much I get for it.
- *person A* sells it for $X.
- It’s OK for you, people will pay more for one of your items.
- The materials were just hanging around.
Because I had mainly sold on Etsy , my low pricing was a necessity because there is too much competition and dilution regarding jewelry items. Unless you can be extremely specific or niched down in your description and title without violating any trademark issues, your items may get lost in the sea of sparkly searches.
Back when I transitioned from a hobby to a full-time business and put eCommerce directly onto my website, I adjusted the pricing at my site. My new price formula more accurately reflected a desirable hourly pay rate when factoring in my time.
I think those of us that make handmade items get suckered into the feeling of offering “friends and family” pricing. We keep a hobbyist mentality, instead of using our business sense the same way that we do regarding regular hourly employment. This is either because of our own uncertainty due to inexperience and confidence or because customers complain about our items being too expensive. (This much chagrined statement comes to mind: “I can get this for $5 at Wal-Mart” – admit it…you’ve heard this one before). Well, yes you MIGHT be able to get something similarly themed, but you won’t have the exact beads, charms, findings and unique elements that I incorporate in my designs. Also, you won’t have all the tools, hours of training and beading skills that I have as a designer with my experience and jewelry making supplies.
If you work for a business for more than a year, you generally expect some sort of raise in salary. In the handmade realm, however, you are responsible for pricing to include increases for cost of living, supplies, shipping, packaging, breakage, liability, overhead (if you sell at craft fairs or have a store front), etc. Too often we try to be the nice guy or maybe we’re just assuming a value (you know what they say about that)…and we undercut ourselves to the point of not making a genuine income.
Research your industry, be vigilant about your SEO keywords, join handmade groups and communities to see what your peers are doing, read trade magazines and invest in training to increase your skills. By making yourself more skillful and knowledgeable, you can build your confidence to more accurately price your products, which in turn validates your authority to create a respectable income for yourself.
Have a sparkle-riffic day, everyone!
Source: Ten things you shouldn’t say when pricing handmade items | Life’s Big Canvas
