- Profit is not a dirty word. If you are selling something you expect to make a profit, right?
- Hand-made is not synonymous with cheap.
- My time is worth money.
- Buyers can smell a lack of seller confidence. It shows in descriptions, pricing and photography.
- The items I create are worth more than any mass-produced item, since no one else has one like it.
Now, how do you price correctly?
- Know the current market value of your supplies and mark them up at least 100%. Just because you got something on sale doesn't mean you lower your price. You may not find that item one sale again when you run out.
- Think about a labor cost. This is important. If you do not charge for labor you are cheating yourself. Do you think the stores and boutiques where you might shop don't have labor costs built into their prices? Don't sell yourself short.
- If you have to ship an item and decide to offer free shipping, make sure you have calculated the cost of shipping and shipping supplies into the price of your item, otherwise you are losing money.
- If you plan to sell at craft shows, it's wise to assess your market first. Go to local craft shows and watch who is selling and what types of items are selling and for what prices. Know your customer base. If you sign up for a craft show in an area where people are interested only in spending less than $20 for an item, then don't put your best, most expensive items out. They won't sell. Gear your inventory toward the show. Know the demographic that is expected to attend. Plan your inventory accordingly.
At craft shows, always have supplies on hand to custom-make pieces, and always have pieces to work on so customers can see how your lovely items are made - so they can see the work that goes into them. If you're just sitting there with all your pretties laid out, customers will treat it as they would the jewelry rack at a big box store and look for the bargains, and if they don't find any to suit, they will then attempt to haggle with you over price, because to them, it's just another jewelry booth. If they see you working that allows them to come watch and ask questions. You can show them that you are making a pair of earrings or a necklace similar (but not the same) as something you have displayed. They can see that there is labor, time, effort and sometimes back breaking labor, that goes into these creations. Let them see the callouses on your fingers!
If you have done your research and assessed your demographic appropriately, you should have no problem turning a profit at a craft or art show. People want to believe they are getting value for their money, HOWEVER, when they see a pair of earrings that are created from sterling silver and unique bead components and that pair of earrings is priced at $12, they may look at them, but odds are good they won't buy. Why not? You're cheaper than the stores! That's why not. When a pair of sterling silver earrings costs upwards of $50 for something basic and you're selling them for $12 your credibility is called into question. If you don't put a fair market value on your creations, customers won't believe your items are worth purchasing. They will smell your lack of confidence in your own creations and move on.
Is everyone going to buy? No. Some people will be outraged that you'd charge "that much" for something "hand made." So what. Smile and move to the next customer who is actually going to purchase your hand-made item for "that much."
Remember, if you are setting up at a craft show, you only profit once you've covered your supply and labor costs, booth rental, and travel and meal expenses. That means gas and mileage, too...
I'm always open to comments and suggestions, so anyone who has some good input on this subject, please post a comment. I've covered things in brief, and need to head to bed now. It's pumpkin time. :)
Happy creating, everyone!
