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Craft Show Items Priced To Sell!
Pricing your craft show items correctly, and so that you make adecent profit is paramount if you are going to be successful inthis industry. So how do you make the most money from yourcraft show items, and still have them fly off the shelvesbecause they are a great price. Read on to find out!
In order to at least decide on your initial price structure youmay want to follow a mathematical formula for arriving at themost favorable retail price:
production costs + overhead costs + selling costs + profit =best price
Production costs include cost of materials and labor; overheadcosts are rent, utilities, insurance, professional fees; sellingcosts may be show fees, traveling costs and marketing expenses;and profit is why you went into this as a business in the firstplace!
If you're not comfortable with numbers, get help from a savvyfriend or your bookkeeper or accountant if you have one. Ormaybe ask another crafter how they arrive at their best price.Since you need to keep track of your expenses anyway, you willhave the figures needed to fit into this equation, so after youdo it once, you'll get the hang of it. Figuring the productioncosts for one item may be difficult, so if you need to figure itfor 10 or 12 items, you can then divide at the end to arrive atthe price per item.
This formula is a good place to begin if you're just startingout. Whether you're selling handmade sewing or quilted items,pottery or paintings, you have all the elements of the equationto factor in. If this is just too complicated for you, thenprice your items as close as possible to comparable ones untilyou become more comfortable with determining your pricesprofessionally.
After you determine a starting price, compare it to similaritems on the market and test it at your next show. If you findyou have to reduce your price, that also means you need toreduce 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 membersinstead of paid employees, or apprentices as previouslymentioned. Again, there are always several variables involved insetting your retail price.
Pricing should be a strategic marketing move and not hit ormiss, since it's so crucial for success. Your primary goalsfactor into how your price your products. Although profit seemslike the obvious goal in selling your crafts, initially you maywant to price them lower just to get some reaction. Or you maybe moving out a discontinued item and are pricing it at a saleprice. You might choose a higher price because you want toimpart the image of higher perceived value and limited supply,while attracting a higher-end customer. Prices may vary based onsupply and demand, at different times of year, when costs riseor for the release of new products. Keep an accurate record ofall 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 whoare selling less expensive products, you may want to consider adifferent quality show. If customers are willing to pay a fewdollars for cheap jewelry rather than several dollars more foryour higher quality costume as well as gemstone jewelry, youprobably don't have the right customers for your product. Peoplewho know quality will pay for it. If you believe in the qualityof your product, don't sell yourself short by pricing it toolow. You'll just have to keep experimenting to find shows thatattract the kind of customer you're looking for.
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