How I can price my crafts? Is there any formula that I can use when pricing my work? These are questions we all have had at some point of our business.
A small fashion maker will have a very difficult time competing with market prices; You need to offer your customers something different and of a quality good enough to justify the prices you should set as a freelance designer.
The design process not only includes the themes and ideas that underlie its collection, but also obliges to maintain a tight control over the total cost of the final product. Be sure to cover the costs of your business, including materials, manufacturing costs, machinery and facilities, before you start taking sales and charging for your services.
This can be summarized in hours taken x desired hourly rate plus materials plus markup on materials. Include costs for the space in which you work and any costs required to sell (booth fees, commission). This is the basic formula, but that doesn’t always add up to a price that customers are willing to pay. Demographics are a major part of your pricing. The area where you are selling will have a huge factor in your price that the market will bare. There are lots of places that will be willing to pay you for your works of art… not just crafts. I find some events can tolerate higher prices than others.
You will have to make concessions as you evolve; It is important that you do not spend too much at the start, since your prices could be excessive for the market.
What are your ideas about pricing?