Putting a price to...

Necrorose · 08-05-2010, 10:49 PM

So I am horrible at putting prices on items...I almost always undersell myself. Anyone help on this topic? How do you decide what an item will go for and what you are willing to let it go for? I don't want to sell my self short!

tdiprincess · 08-05-2010, 11:03 PM

i'm interested in knowing as well. I know there's a few different ways people figure it out. I typically shop around and see what that type of product is selling for, just to get an idea and then figure it out from there.

DoilyMania · 08-05-2010, 11:21 PM

I am sooo bad at it...that is hardest thing for me.

pinokeeo · 08-06-2010, 12:18 AM

I think the usual formula is three times the cost of materials.

kenbo · 08-06-2010, 01:33 AM

My pieces are a little different for pricing. Depending on the amount of material used, within reason, I don't charge for it. I do, however, charge an hourly rate. I wont get into what I charge per hour, only you can decide that. If a piece takes 2 hours, I charge my hourly rate times 2. If there is a great deal of material involved, I usually add the price of material plus a small mark up to cover the cost of fuel etc. It doesn't matter how cheap you price them, it seems that everyone wants a better deal.

rusty baker · 08-06-2010, 09:12 AM

The only thing I see wrong with hourly pricing is, the longer you make something the faster you get. I started out making a child's rocking chair in 4 hours. Then after I had made a bunch, it was 1 1/2 hours. I obviously wasn't going to lower my prices.

kenbo · 08-06-2010, 09:34 AM

Quote:

Originally Posted by rusty baker

The only thing I see wrong with hourly pricing is, the longer you make something the faster you get. I started out making a child's rocking chair in 4 hours. Then after I had made a bunch, it was 1 1/2 hours. I obviously wasn't going to lower my prices.

I would have to agree with you. You do get faster, especially if templates or jigs are used. I kind of feel that it balances out in the end because there are going to be products that you either break even on or possibly lose money until you get faster at it. Sometimes, unforseen problems can even cause you to lose an entire batch of work equal to several sales. I guess as long as you and the customer are both happy with the agreed price, that is all that matters, whether it be calculated by hourly rates, or by material plus mark up.

rusty baker · 08-06-2010, 11:47 AM

Whatever you charge, it doesn't seem like it's ever enough.

pinokeeo · 08-06-2010, 01:34 PM

There will always be somebody who wants a better deal. I had a lady once ask me if I would give her two for the price of one because she had twins. I told her I wasn't there and didn't have anything to do with her having twins.

As for charging by the hourly rate, I always go with what it costs me to make the first one. No matter how fast you get or what kind of jigs you use, you are still putting forth the same work. You just get paid a little more for every piece after the first one.

I use a formula that is materials plus hourly rate plus a percentage for overhead. It has always worked for me, and I get few complaints. And I don't work for cheap.

Necrorose · 08-06-2010, 06:11 PM

Thanks everyone!! This helps a little..I just sometimes think that I would never pay that price and that is why I end up putting a lower price on them. I have never been very good at putting a hourly rate on things because it only takes me a little while to make things...Pretty quick once I have the idea..

This does help a bit though...Thanks again!