General Chat, Products & Comps <
24/01/2013 at 14:26
How do you calculate your prices?
I'm investigating making and selling a few things to bring in some extra pocket money. I'm just not sure how to go about pricing things so that I make a good profit, but that people are willing to pay.
Do you work out your materials and time and then add a profit margin, or do you see what similar items are selling for and then price accordingly, assuming your materials aren't more than that.
Hope that makes sense.
24/01/2013 at 15:26
I don't make or sell anything but if I was going to, I would look into it, see what the materials cost works put at, see what prices the finished items are selling for and then see if the difference is worth it. E.g. If I was going to do homemade cards to sell for 1.50 each and the materials worked out at .80 each, I would then see how long it takes to make one card for the .70 profit I would make. If it takes an hour, it's not worth it for .70 but if I can do ten in an hour, becomes more worthwhile. What are you thinking of making? I have lots of friends who do this - cards, cupcakes, cloth nappies.
24/01/2013 at 18:45
I do both things you suggest Giddy - check out the price others are charging for a similar product as I wouldn't want to give something away but nor would I want to wildly overcharge. Then I would see what materials would cost and how long it would take me to make them and see if the two prices matched. If the did - good, if not I would adjust so they did. Can I speed up making time, change materials etc to lower the price and so on.
25/01/2013 at 18:55
Thanks ladies! I'm glad you understood my brain dump! I'm thinking of doing personalised picture frames, name plaques, that sort of thing. I think I'll have a go at a few and see how it works out. Sure I'll be back with lots more questions.
27/01/2013 at 18:51
Well I've only just started selling the things I make (mainly greetings cards but some other bits) to family and friends, so generally look at what it would cost elsewhere and price it to be slightly cheaper than that if possible, so they get a bargain and I get a few extra pennies. If it's something that has taken you a while you need to account for the time it took you in your price.
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