Hi this is James from craftmarker.com with the video series, the ten most asked questions about selling your crafts, and the ten questions you should be asking. This is video seven of twenty
One of the most frequently asked questions is, how much should I charge for my crafts? Let us look at a basic formula to use for determining prices for your craftwork. The first step is calculating the cost of your materials. Cost of material should include every little thing that goes into a finished piece. Even if you have to estimate for things like paint, or glitter, or yarn. Let's say you make Christmas ornaments, and it costs you exactly $2.75 in materials to make one ornament.
The next step is figuring the cost of your labor. How much is your time worth? Ten dollars an hour? Fifteen dollars an hour? Twenty dollars an hour or more? Whatever you choose for the value of you labor, multiply that hourly rate by the hours it takes to make the item. For example, if takes a half an hour to make your Christmas ornament, and your hourly rate is $15.000 an hour, then your cost of labor is $7.50. For ornament example, the cost of material is $2.75, cost of labor is $7.50 just add that together and we are going to have a cost of goods of $10.25. So should the asking price of the ornament be $10.25? Maybe yes, maybe no. What is certain is that $10.25 ten is the minimal amount of money you must earn back.
The correct prize to charge is the answer found in the next video. The question you're now is how much should I charge for this piece? But the real question you should be asking is, how much you customer is willing to pay? Watch the next video and learn how to maximize your prices, and then you profits. This is James from craftmarker.com. See you in the next video.
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