Pricing My Handmades

Pricing is always one of the most tricky things in any business. I used to be clueless about pricing and tended to price without including my man-hours which should cover design time and the actual crafting time. Then again, I asked myself how am I going to price myself. How much does my time worth?

In order to decide on that, I had to access the amount of effort I had to put into the creative process for each piece of work, the amount of detailed work, the level of skill involve in each design. With these in mind plus the material costs, that is how I am going to price my crafts. Then again, I had to also access my competitors. What is the average market price for similar crafts and designs? With that I can more accurately rate my crafts.

Eternal Covenant US$42.00 
This Italian corded lace ring pillow lined with baby pink satin was customized for a local customer. She was very pleased and she dropped a feedback on my Etsy store that says " I absolutely love my ring pillow and am sooo glad I found Karen's etsy store! She is extremely patient with all my questions and even delivered the pillow to my house (we both live in Singapore)! Pillow was beautifully packaged, simply worth every cent! Thanks Karen!! :) I will definitely send you pictures of the ring pillow in action next year...stay tuned! :) " It certainly made my day that my customer is so pleased especially when it is for a very special ceremony :)

The fact that is handmade, I had to bear in mind that I should never compare my crafts to similar factory products. The selling point is exclusivity, one of a kind or even limited edition. One more thing I always make sure is, never compromise on material quality and craftsmanship as well as service. With these, customers feel that it is more justifiable for them to pay a premium for handmades. However, from time to time, I do face tough competition from some who are willing to price down badly to gain market entry. It does worry me but when I think again rationally, in the long run, pricing low is not at all viable for the handmade business. After a short period, those who price very low may find it difficult to sustain. The amount of effort and energy put into making something is alot. As such, fellow crafters should value all our creations and take pride in our work. Why do designers charge a premium? That is because they do not mass produce from the factory. Their designs are limited and unique and most of all of high quality product. Thus I felt that as an artisan, who genuinely puts in dedicated hours and effort into my creations, I should value them and price them right!