Handmade items For sale
Pricing handmade has been a discussion among artisans for the longest time.
It’s also what makes or breaks your business. Here’s what I mean:
You won’t make enough money to stay in business.
You risk running a loss because you don’t have enough money to pay for your marketing.
Not to mention the perception you allow your customers to have about your products and brand: cheap, poor quality, low value, bargain buy, unmemorable.
You won’t make enough money to grow.
You’ll forever be in that cycle of creating, selling, creating, selling, but never breaking out of it to create more and sell more because you don’t have enough money for more.
Yes, you do need to have more money to make more of it.
You risk alienating customers.
You might get a sale every now and then and make big bucks, but the thought of when you’ll get your next sale scares you because your handmade items are not priced accessibly in your market.
Did I scare you enough yet?
Pricing is serious stuff, and deserves your attention if you want to build a sustainable business for the long haul.
Fortunately, there’s an easy way to figure out all of this math (and it’s not terribly hard either!)
Here’s a formula many artisans use:
Supplies + Your Time = Item Cost
Item Cost x 2.2 (up to 2.5, depending on how much you want to markup) = Wholesale Price
Wholesale Price x 2.2 = Retail Price
Here’s an example. Say it takes 15 minutes for you to make a pair of earrings and you your hourly wage is $20. Your time spent to make these earrings cost $5 ($20 divide by 4). The beads and findings for the earrings cost $0.85.
$0.85 + $5 = $5.85 (Item Cost)
$5.85 x 2.2 = $12.90 (rounded up Wholesale Price)
$12.90 x 2.2 = $28.40 (Retail Price)
Most pricing formulas would advise on a 2x markup from wholesale to retail pricing, but I’m suggesting a 2.2 up to 2.5x markup because this will appear more attractive to your wholesale prospects.
It’s almost expected in seasoned retailers and brick and mortar shops.
You never know what might change your mind a few years down the road, so you want to be set right off the bat.
Mr. Coffee BVMC-SJX33GT 12-Cup Programmable Coffeemaker, Chrome
Kitchen (Mr. Coffee)
Hamilton Beach 64650 6-Speed Classic Stand Mixer, Stainless Steel
Kitchen (Hamilton Beach)
New Year Gifts - Sandstone Drink Coasters Set of 2 - Natural Moonlight-White Hexagonal Absorbent Stone Coasters - 4 Inch - Sale on Coasters - Handmade Holiday Decorations from SouvNear
EMIRACLEZE Christmas Gift Holiday Shopping Letter Stars Starry Night Moon Removable Mural Wall Stickers Decal for Children Bedroom Home Wall
EMIRACLEZE Christmas Gift Holiday Shopping We are Family Quote English Letter Removable Mural Wall Stickers Wall Decal for Living Room Home Decor
How do I list one of a kind, handmade items for sale on Amazon?
Kate, the only way you can sell books on Amazon that are not in the ISBN system is as a unique item in the auction section. You won't be able to list these as ordinary book sales, because Amazon's database is based on the ISBN/UPC coding scheme. That's how they pull up a description of the book for your listing.
But if you read the blog posted as a link in that article, you will see that Amazon will work out special situations like yours if you are a large enough vendor that they feel its worth their time...
You need to contact them directly.