Product Pricing

This is the tough question, what is my handmade item worth? There are so many things to consider when pricing an item. You first have to know how much your materials cost to make each individual item. It doesn't matter whether it costs you 10 cents or $100 to make, you have to get this amount back. If you need any special tools to make your item you will have to add a fee to cover this tool and replacing it. The electric or other power source has to be accounted for. You can say I was using it anyway but in reality , it's still a cost of production. This is just like any other business out there, even though you are doing most of it at home, you still have business expenses. If you do shows, you have spot rental, tables, a tent, vehicle expense, insurance, and maybe a few other little expenses. All of these are cost of doing business expenses. Each item you sell is responsible for it's share of these expenses. The "Big One" is your time. What is your time worth? Most people aren't doing this full time and don't charge near enough to cover the expenses of doing business. It isn't important to them, it's just a fun way to sell the things that they like to make. For the full time or more serious vendor, it's a different story. Your selling price has to include all the expenses of production and marketing or your bottom line will not be a true reflection of your business. Choose your selling price wisely.