Pricing Crafts - How to Make Money With Crafts

  • Published on

  • View

  • Download

Embed Size (px)




<ul><li><p>Pricing Crafts - How to Make Money With Crafts </p><p>By Julia Derby </p><p>Find out about pricing crafts. Selling homemade crafts can be a rewarding home business opportunity. </p><p>You can achieve good profit margins when you create your own crafts and sell them. If you are creative </p><p>and enterprising and able to produce your homemade craft without large expenses there is virtually no </p><p>limit to the handcrafted products you can sell successfully. </p><p>What do I need to know about pricing crafts? </p><p>Selling crafts comes down to a simple philosophy - the price of the finished product has to cover all the </p><p>expenses that went into making it plus leave you with a healthy profit. Obviously you want to make a </p><p>profit but you also want to make your price attractive to buyers. No matter how wonderful your crafts </p><p>are setting the wrong price may leave you with piles of unsold stock. Your pricing objective is to make a </p><p>product at a price low enough to appeal to buyers and high enough to cover all your costs, including </p><p>your labor, and make a decent profit. </p><p>Most craftspeople err on the side of under pricing their work. This is because they undervalue their own </p><p>labor and expertise. In fact a unique handmade item is a real value item and should be priced </p><p>accordingly. Check what similar handmade goods are selling for and price your product competitively. </p><p>Under pricing may mean a quicker sale but it results in low profits and a perception that your product is </p><p>"cheap" and of inferior value. No crafts business is sustainable under these conditions </p><p>Another common pitfall is over spending on supplies before really establishing your market. Watch your </p><p>costs very closely and be disciplined about only buying the supplies you really need. It is easy to be </p><p>seduced into buying all sorts of attractive materials that are not necessary, especially when you first </p><p>start a home craft business. Closely monitor your overhead expenses such as utilities, internet fees, </p><p>travel expenses, marketing and packaging costs. Always include a percentage of these costs into the </p><p>price of your finished product in order to remain profitable. </p><p>Will I make money from home crafts? </p><p>Before you start making your crafts note down all the expenses, add the profit you expect to make and </p><p>ask yourself - will the price still be attractive for the buyers? The best way to find the answer to this </p><p>question is to research the prices for similar products. Visit online markets such as eBay and online </p><p>handmade craft stores or go to local craft stores and retail outlets to find out what these products are </p></li><li><p>actually selling for. You need to have some idea of your target market and how much they are ready to </p><p>spend on the items you want to make. This research will tell you whether the type of crafts you plan to </p><p>sell will make you money. </p><p>Do I need to keep proper records? </p><p>If you plan to turn your craft making hobby into a successful home business you will need to understand </p><p>the basics of bookkeeping and maintain proper records. Proper records and bookkeeping are important </p><p>for sustaining and expanding your home crafts business. It will tell you exactly how profitable your </p><p>business is and provide you with the information you need to make business decisions such as buying </p><p>additional equipment or starting a new product line. </p><p>The purpose of keeping records is to help you properly manage your crafts business and to enable you </p><p>to pay any taxes etc that are required. As long as it achieves this your bookkeeping should be very </p><p>simple. There are a number of affordable accounting software packages for small businesses or you </p><p>could purchase bookkeeping forms from your local stationery store and do it manually. </p><p>What will make my craft sell? </p><p>Give your craft a unique or special twist on a mass produced commodity to make it original and </p><p>desirable. Buyers search for products that are slightly different from those readily available in retail </p><p>stores. Also make sure you produce a quality product. Consumers expect value for money. You control </p><p>the quality of your handmade product so ensure your workmanship is up to scratch. </p><p>Do you want to more information or Find Ideas For creating and selling Crafts, there is great </p><p>information for you here: pricing crafts </p></li></ul>