– by Michelle Lancaster (Wink Design) www.wink-design.co.uk
As a Designer/Maker, finding the ‘right’ price to charge for your work can take time. You don’t want to price yourself out of the market, nor do you want to undercut your competitors, selling so low that you make little profit. Nobody wants to be a ‘busy fool’! And if your prices are too low, customers may perceive your items as cheap, poor quality or low value. As I always say, you’ve got to walk the walk, and talk the talk. You have to value yourself, and your work. If you do that, everyone else will too.
Be confident with the price you set. If you find that a price isn’t working, well, it’s not set in stone – change it! See how it goes. You’re in charge. You can always adjust your pricing (keeping your profit in mind!) depending on the time of year / cost of materials / demand.
Do some market research. See what similar items are being sold for. Try to price your items within this range unless your item differs in quality or uniqueness. You have to consider your market, and what your customers will expect to pay.
Keep a list of how much your supplies cost. I break my items down into components and attribute a cost to each thing – even down to the stickers that go on the packages! It all adds up. When you have the true costs of making your item you will find it easier to price it, and work out a profit you are happy with. I have a spreadsheet set up for this, then I can easily pick out components and work out prices quickly. Keep an eye on price changes though, as they will have an impact on your profit. Remember – profit is important! It’s what keeps your business going.
And most important of all, don’t forget to include your TIME when working out costs. If you were working in a 9-5 job, you’d expect to be paid, right? Don’t undervalue yourself. Your time has a value. Your skill has a value. Many of us have spent years honing our processes. This counts for something! The value of your items incorporates the quality, skill, and love that goes into each one. Every maker puts a little bit of themselves, their talent, their imagination into their products. They’re not mass-produced in a factory somewhere. They are made with love and thought and care.