This question comes up a lot, in many forms:
- How much should I charge?
- How do my prices look?
- Am I charging enough/too much?
It’s something handmade seller struggle with a lot. It’s understandable, there are tons of factors to consider.
Most handmade sellers, especially ones doing it for a hobby, are just worried about covering their material costs… but there is SO much more to it!
How much do you want to pay yourself? Most handmade sellers that I talk to are trying to earn an income that lets them pay some (or all) of their bills while either staying home with their kids or while working a second job. The key here is “to earn income,” and yet they opt to pay themselves very little (or nothing!)
No one wants to work for free or to do incredibly difficult work for little pay. Running a business is about as mentally and emotionally draining as it gets, so you should make sure you are paying yourself enough that it’s worth it.
You are probably spending a LOT of time taking photos, research keywords, writing descriptions, and answering customer questions… if you were at work doing that or had an employee doing that task, there’s an expectation of payment for that time. Why should you do it for free then?
Your business has ongoing costs, like software subscriptions, website hosting, and probably higher utility bills from running all the tools it takes for your business. You need to make sure all that is included in your price.
By now, you’re probably thinking “WOW, that’s a lot to figure out.”
And it is. That’s why I’m offering an online workshop to help you pick the best pricing strategy for your business.
Introducing, the WaltzWorks Pricing Workshop! I have just released my first premium course and it will help you understand the issues around your pricing and calculate how much you need to charge so you can be profitable!
Many handmade sellers don’t have a business background, so the first few lessons help lay the foundation of business finance so you can understand the context in which you will build your pricing strategy.
The real meat of the course walks you through the calculations that go into pricing. There will be a minimum price you must set that is the lowest you can charge and still pay for your costs, pay yourself, and make any profit at all. Once you know that number, only then can you make informed decisions about your overall strategy.
The workshop ends with a lesson on what to do if you just can’t charge enough because the market won’t pay it.