Today on #MakersTV I’m talking the one thing that I think most makers forget when pricing their handmade goods, products or boutique services.
Pricing is a really big topic especially for those who are still working it all out. About 80% of people undercharge when they are still starting out, afraid that if they raise their prices then their customers won’t buy or would think that they are being ripped off.
Don’t be afraid! There are actually basic pricing formulas available online although in reality it may also take a few trial and errors. You have to remember that your product’s value should dictate its price. One thing you should never forget in pricing your handmade goods, products, and even services is the thinking time. Your expertise that actually goes into the making of the thing.
For example, doing graphic design tasks. Consider the time you created the design itself but also the intellectual property, the innovation, and the concept of the design. It’s not only your labor time but your skills and expertise. The cost of the item goes up because the value of the product goes up.
Handmade is valuable because it is your property. When you are innovating, creating, and inventing something new or unique to you, never downplay that and realize that your work is valuable. Most makers need to put their prices up because most, if not all of the time, skills and expertise are not included in the equation when pricing products.
So price your products accurately and never be afraid to put a price on your talents!