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Five Top Tips for Pricing Your Work
Five Top Tips for Pricing Your Work - A Guide for Designer/Makers
As a Designer/Maker, finding the ‘right’ price to charge for your work can be a tricky thing. Where do you start? How do you work out a price? How do you know it’s right? Here are some top tips to help you decide the right price for your products.
1. Do some Market Research
See what similar items are being sold for. Try to price your items within this range unless your item differs in quality or uniqueness. You have to consider your market, and what your customers will expect to pay.
2. Don’t set your price too low
If your prices are too low, customers could perceive your items as cheap, poor quality or low value. I always say ‘you’ve got to walk the walk, and talk the talk’. If you value yourself and your work, then everyone else will too. However do be careful when setting your prices. You don’t want to price yourself out of the market, nor do you want to undercut your competitors. If you sell too low you won’t make a profit - and nobody wants to be a ‘busy fool’!
3. Keep a list of how much your supplies cost
I break my items down into components and attribute a cost to each thing – even down to the stickers that go on the packages. Remember, it all adds up! The thing is, when you have the true costs of making your item you will definitely find it easier to price - and work out a profit you are happy with. I have a spreadsheet set up for this, with all the components and prices listed, then I can easily pick out components and work out prices quickly. Do keep an eye on price changes though, as they will have an impact on your profit. Remember - profit is important! It’s what keeps your business going. Profit allows you to keep making what you’re making, and run a successful business. Remember to revisit your costings every six months or so to check you’re still on track and your profit margins are working out ok.
4. Be confident with the price you set
If you find that a price isn’t really working… well, it’s not set in stone! Just change it. See how it goes – after all, you’re the boss! You can always adjust your pricing (keeping your profit in mind!) depending on the time of year / cost of materials / demand.
And most important of all...
5. Don’t forget to include your TIME when working out costs
If you were working in a 9-5 job, you’d expect to be paid, right? Don’t undervalue yourself. Your time has a value. Your skill has a value. Many of us have spent years honing our processes. This counts for something! The value of your items incorporates the quality, skill, and love that goes into each one. Every maker puts a little bit of themselves, their talent, their imagination into their products. They’re not mass-produced in a factory somewhere. They are made with love and thought and care.
It would be great to hear if anyone else has any other good strategies to help with pricing. How do you work yours out?
This is the first in a series of blog posts in which I'm hoping to share some of the small business advice I've picked up over the past eight years that I've been running Wink Design. Hope it's been useful! Look out for my next blog post...