Pricing homemade items can be very difficult for a beginner in sales. Pricing handmade items is one topic that has never been agreed upon by all artists. There are lots of different viewpoints and philosophies. An easy tip on how to calculate your prices is to follow the following formula (supplies X 2.5 (to cover overhead for the cost of running your business) + labor = total list price). Labor is on average $10-$18 an hour. For example if you worked on an item for 1/2 hour and paid $3.25 for supplies you would figure out your list/sale price for that item as $3.25 X 2.5 + $5 (half or $10/hr used for this example) = $11.50. People love homemade items because they are unique and one of a kind. It is recommended that you charge $10 an hour for all labor. It is not advised to charge less than $10 an hour. Price your work too high and you may limit sales, possibly putting you out of business. Price your work too low and you'll give your labor and profit away, which may also risk the life of your business. Please remember this is your job and your time you are using to make your homemade items. You want to treat this time as any other job. Stay focused, on task, and charge for your services. You can always start at a lower labor charge and move it up later as your business grows. You can also start at your chosen higher rate which will allow for sales and promotions on your items without you taking a loss on the item.
www.nadinesknacks.com