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Craft Show Items Priced To Sell!
by: Natalie Goyette
Pricing your craft show items correctly, and so that you make a
decent profit is paramount if you are going to be successful in this
industry. So how do you make the most money from your craft show
items, and still have them fly off the shelves because they are a
great price. Read on to find out!
In order to at least decide on your initial price structure you
may want to follow a mathematical formula for arriving at the most
favorable retail price:
production costs + overhead costs + selling costs + profit = best
price
Production costs include cost of materials and labor; overhead
costs are rent, utilities, insurance, professional fees; selling
costs may be show fees, traveling costs and marketing expenses; and
profit is why you went into this as a business in the first place!
If you're not comfortable with numbers, get help from a savvy
friend or your bookkeeper or accountant if you have one. Or maybe
ask another crafter how they arrive at their best price. Since you
need to keep track of your expenses anyway, you will have the
figures needed to fit into this equation, so after you do it once,
you'll get the hang of it. Figuring the production costs for one
item may be difficult, so if you need to figure it for 10 or 12
items, you can then divide at the end to arrive at the price per
item.
This formula is a good place to begin if you're just starting
out. Whether you're selling handmade sewing or quilted items,
pottery or paintings, you have all the elements of the equation to
factor in. If this is just too complicated for you, then price your
items as close as possible to comparable ones until you become more
comfortable with determining your prices professionally.
After you determine a starting price, compare it to similar items
on the market and test it at your next show. If you find you have to
reduce your price, that also means you need to reduce some of your
costs if you want to keep the same profit! You may be able to cut
down your overhead by sharing a studio, or you may cut your
production costs by using family members instead of paid employees,
or apprentices as previously mentioned. Again, there are always
several variables involved in setting your retail price.
Pricing should be a strategic marketing move and not hit or miss,
since it's so crucial for success. Your primary goals factor into
how your price your products. Although profit seems like the obvious
goal in selling your crafts, initially you may want to price them
lower just to get some reaction. Or you may be moving out a
discontinued item and are pricing it at a sale price. You might
choose a higher price because you want to impart the image of higher
perceived value and limited supply, while attracting a higher-end
customer. Prices may vary based on supply and demand, at different
times of year, when costs rise or for the release of new products.
Keep an accurate record of all your price changes so you can monitor
results.
If you still find your items are not selling at the
"right" price for you perhaps because you're competing
with vendors who are selling less expensive products, you may want
to consider a different quality show. If customers are willing to
pay a few dollars for cheap jewelry rather than several dollars more
for your higher quality costume as well as gemstone jewelry, you
probably don't have the right customers for your product. People who
know quality will pay for it. If you believe in the quality of your
product, don't sell yourself short by pricing it too low. You'll
just have to keep experimenting to find shows that attract the kind
of customer you're looking for.
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About The Author
Natalie Goyette is the best selling author of Craft Show
Success. Her e-book shows you how you can finally make money
at craft shows.
craftshowsuccess.com
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