How Much Can I Charge for my Handmade Crafts?

You have worked so hard designing and creating your unique handmade crafts and then it comes time to price them and a clear thought process goes out the window. Emotions can get in the way and confuse our logical mind.  It is not always as simple as the cost of materials plus your time spent creating equals your break even price, now just add a fair percentage for profit and your done.  As Artists we put much more than our time and money into our creations.  They are each a small part of us and to some degree like children that we let out into the world.  How do I possibly put a price on that?

Well, here are a few strategies you may want to consider for how to price your handmade crafts:

1-Logical Method (boring,but safe).
Figure out the cost of materials (don't forget shipping fees if your supplies were shipped to you). plus your time spent creating (pay yourself well, you are an Artist and a gift to this world).  I recommend at least double the current minium wage.  If you are a specialist like a precious metals worker then find out the correct wage for your skill. This number is your  break even number.  Now add what you believe to be a fair profit percentage and you have your price.  Here is an example:
Supplies $8.50 + $16.00 an hour = $24.50
$24.50 break even price + 50% profit = $36.75
Price for your craft is $36.75 (for a craft that you spent 1 hour of time on).
Remember that your profit margin and hourly rate are for you to decide, the above is just an example.  Keep in mind that a company may mass produce greeting cards at a cost of .35cents and if they charge $3.50 it is a 1000% profit margin for them, yet the customer feels they are paying a fair price.


2- Intuitive method for pricing.
As an Artist I rely a lot on my intuition as I believe many of us do.  Why not use that same wonderful gift to help you in pricing?  Here is what I sometimes do:
Take some time away from your creation, just a few minutes even, have a cup of tea or do some other activity.  Return to the area where your handmade craft is, give it a quick look and say out loud "I will sell this item for...(say the first dollar value that comes to mind, do not engage your logical mind by thinking about it). This is your price.  Remeber that many people buy based on emotional reasons like beauty, inspiration and love.

3-Research method for pricing your handmade crafts.
Go to Amazon.com and search for similar items, be sure to be as specific as possible.  You want to compare items that are the best match.  Make sure you are writing down prices of new products, amazon often lists items that are used.  Go to eBay and do the same thing.  Google the type of craft you made and see what others are pricing similar ones at.  Make a list of several prices and then calculate the average and and that is your price.

4- Ask someone else what they would be willing to pay.  Try to find someone who is not too close to you.  A store owner where you frequently go is an ideal person.

5- Averages method for pricing.
Complete all 4 of the above methods, add them together and then divide that number by 4 to get your price.  For example:
1=$36.75
2=$45.00
3=$42.50
4=$47.00
Total=$171.25 divided by 4 = $42.80

Now matter how you choose to determine the price for your handmade crafts, remember that you as an artist are delivering value to this world in everything that you create.  It is the artist that helps us all to see the world in a new way.  Please take a moment and give this post a +1 on Google if you feel it deserves one.

Best Wishes,
Bette

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PEP Your Business Up

Whenever you are asked if you can do a job, tell 'em, "Certainly, I can!" Then get busy and find out how to do it.

-- Theodore Roosevelt

I remember when I  was asked by a few of my very fist clients about when I would have my Christmas collection ready.  I was so new in my business that I had not even thought about it yet.  I was just making cards with  romantic themes and was still so happy that they were getting a good response.

I then did what I now refer to as PEP. I promised my clients that my Christmas cards would be ready by mid-September.  It was already August, I had no supplies or set thoughts for making Christmas cards and time was ticking.    Some may call this stress, but I feel it as Positive External Pressure or as I now like to call it, PEP.  PEP worked wonders for my motivation, persistence and productivity.

I went on to design what was to become my businesses second best selling category :
Handmade Christmas Cards and I enjoyed a huge boost to my business in so many ways.  I gained more knowledge, new suppliers, more customers and had lots of fun too.  This has been a great method for expanding my business and I use it whenever I feel like I have hit a plateau or just want to stir the creative energy up.  For me it happened naturally, but there is no reason you can't use this method intentionally.


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A few things to keep in mind when using PEP are:

-Make sure that whatever it is you promise, you truly believe that you can do it.
-If for some reason you see that you are not going to be able to get it done before the deadline, do not be afraid to tell the truth about why you are delayed or why it is no longer possible.

Here is another example of a way you can add PEP to your business:

Announce a competition for the best new product idea where the winner will receive the first one you create for free or have it named after them.  Set the submission deadline and winner announcement dates.  (Never arraigned a customer competition before? Perfect, get busy finding out how to do it.)

Click to Tweet - "PEP worked wonders for my home based business."

Be creative, have fun and PEP up your business today!

Best Wishes,

Bette

P.S. If you feel that you got some value from this blog please take a moment and give us a google + by clicking the G+ button. Thank you.

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A Truly Free Scrapbooking Event. Really.

I know, it sounds like one of those titles that over promises just to get you to read it, but this is the real deal. Remember my last post about Lain's scrapbooking business soon to break six figures? Well Lain just notified me that she is offering a free, live online event on October 2nd. It's called October's scrapinar and Lain says:

"We are welcoming Jennifer Woodbury, a creative team member for Becky Higgins' Project Life, as she shares "Project Life Step-by-Step." Whether you're a dedicated Project Life participant, a newcomer to the concept, or a complete "I have no idea what you're talking about" neophyte, this f-r-e-e event will whet your appetite for scrapbooking and help you figure out how to fit Project Life in your schedule.

The event is scheduled for October 2, 2012. If you can't join live, as always, they will be having a replay event -- but you MUST pre-register!

If you've been curious about how the True Scrap event works in October,(that's the one I spoke about in the previous blog), then this is a perfect time to check out the webroom risk-free! Join them on Oct. 2 2012 -- and invite a friend!"

Go there now, it really is free! Here is the link:

Click here to view more details


You can also go to my website at Creative Cards 4U and see more information on our scrapbooking page.

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This is an awesome opportunity to learn not only a lot about scrapbooking, but to also pay attention to good methods for developing and driving your own business. It is just another idea that someone is putting into practice to make extra income with their passion for handmade crafts. Go there and take some action of your own. If you missed the link, here it is again:

Click here to view more details



Best Wishes,

Bette

Six Figure Scrapbooking?

Scrap booking has been joked about by the "make money online" community for a long time. I am here to tell you about Lain, who's scrapbook "hobby" is about to break six figures for her. To me there is a lot of fun in turning your arts, crafts and any other creative abilities into a successful money making business, but I assure you it is no joke. I will include a link to Lain's business at the end of this article, I am proud to affiliate with such a wonderful, creative person.


Lain is a success story, smart and hard working. She was a freelance journalist focusing in the high tech marketing industry, but had a passion for scrap booking inspired by her kids. With the dot com bubble burst in 2000, that work started to become slow. She took her writing skills and coupled with her love of scrapbooking started writing for a scrapbooking magazine. She was doing well again and building a following when suddenly our next economic disaster occurred and the magazine she worked for folded.


Lain then decided to start doing what she did for the scrapbooking magazine, but for herself instead. She had a blog and built a community through sharing ideas and encouragement. She read and took business courses and developed strategies to build her hobby into a business. She came up with an idea that no one else is doing in the scrapbooking world that I know of. It's a live online 2 day interactive classroom with 15 experts sharing ideas,tips and inspiration. You experience a community atmosphere and the feeling of being part of something bigger. It' a wonderful event that gives so much.


Here is the link to her business:

Click here to view more details


With Halloween, Thanksgiving and Christmas on the way this scrapbooking resource will certainly elevate your creative application of all those great family photos you will be taking this season. I highly recommend participation in this event as it will flood your mind with creative ideas for your personal life and for your business development. It's October 19-20th 2012, with a special savings for those who register by September 30th. Hope to see you there!


I want to give a special thanks and credit to Pat Flynn of smartpassiveincome.com as the source for my discovery of Lain and her story. His podcast is well worth listening to if you want honest, transparent information on business development.
Thanks Pat!