Hello Crafters !!! Here is the pricing formula for the newbies who feel difficult in pricing their handmade products. Before I start, let me tell you that handmade is something precious than machine made. Do respect them and dont go down with your pricing, because of your competitors. Many people are into handmade and rather giving stuffs for less price, you can give them for free of cost. Kindly respect your hardwork that you put in creating a beautiful piece with your precious time :) Nothing comes for free, especially the handmades....
There is always a difference between Wholesale and Retail.
WHOLESALE can be given for your regular clients and for bulk buyers.
RETAIL can be given for individual buyers.
Cost of Supplies : Make a note of the supplies that you buy and it might help you in future also to calculate the correct pricing.
Hourly Rate : Decide a labor charge for your work.
Here is an example for you to understand better...
I am assuming my cost of supplies to be Rs.200/-.
My labor charge for an hour would be Rs.100/- ( 100 for 60 mins, 75 for 45 mins, 50 for 30 mins, 25 for 15 mins and goes on...If your labor charge is Rs.50 per hour, then it would be 25 for 30 mins. So, before calculating the price make sure that you decide on your labor charge according to the work that you do).
Wholesale price = 200 + 100 = Rs.300.
Half of the wholesale Price = 300/2 = Rs.150.
Retail Price = 300 + 150 = Rs.450.
Gain your clients by speeding up your work, but not by giving less Price.
RESPECT Handmade. RESPECT Hardwork.
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