tag:blogger.com,1999:blog-7738806450683516812.post6750913167873707163..comments2023-10-28T21:57:28.985+11:00Comments on ink and spindle: The Formula - or 'how to price your wares correctly'Ink and Spindlehttp://www.blogger.com/profile/06792337674240133318noreply@blogger.comBlogger90125tag:blogger.com,1999:blog-7738806450683516812.post-14461541993129484912014-04-16T01:14:40.233+10:002014-04-16T01:14:40.233+10:00I want to see if I can make your system work.
I am...I want to see if I can make your system work.<br />I am starting a mobile reflexology business as our carpentry business has overhead that no one seems to want to pay these days.<br />20min session = 1hour of total time X $11/min.wage in Ontario = $11 X 2 for overhead(tools/vehicle) = $22 wholesale cost X 2 for retail = $44.<br />That would then put a 30min session at $51 retail, 45min session at $62 retail, 60min session at $73 retail.<br />Those prices would be great but I only see them listed for practitioners with more experience, not for people starting out. It will be interesting to see what prices work in the end. Currently I am trying to follow the advice in the book Rich Dad, Poor Dad, by having income be divided into 3. 1/3 for living = min.$20,000/yr; 1/3 for overhead; 1/3 for the future = $60,000.00/yr/gross divided by the number of sessions I can do in a 44 hours work week and 48 weeks a year.CreatingWellness101https://www.blogger.com/profile/12459461064490652962noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-85548914551307550062014-04-10T08:06:43.681+10:002014-04-10T08:06:43.681+10:00Although your formula is well intentioned it is no...Although your formula is well intentioned it is not the right way to do it.<br />You have to start from the percieved value of the product and take it down to the same scale in other words: set the price at a level at which you would buy it in the store you would most likely find thsi kind of product. Let's say it is $100...so you wholesale price is $50. Your rep. or what will be your rep when you delegate the job to someone else wants at least 5% so you get $47,5... Your overhead at 50% is too high. You should be able to work at 35%...if that's not the case make sure you improuve on your efficiency. So you are left with roughly $31. But let's say that you can't and you need 50%...so you have $23,75 to spend on labor and materials. If you can not do it, Do not produce the product! Look for something with a higher added value! To start from materials+labor you might simply end up with the right price but with a product you can NOT sell. Good luck!Koennoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-9486069067489334622014-04-08T22:00:04.172+10:002014-04-08T22:00:04.172+10:00Thank you for this great post! I love the drawings...Thank you for this great post! I love the drawings.<br /><br />Something to add: Consignment <br /><br />Retail x 50% = cheque for wholesale amount in the mail and happy maker.<br />If this total is wrong, then you are pricing your work too low. <br />Once a retailer, I am now happy to pay someone to sell my work.<br /><br />Oh...and postage.<br /><br /> Marianne Brown - CanadaAnonymoushttps://www.blogger.com/profile/16545938601665100374noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-34900921544319549192014-04-08T16:30:28.633+10:002014-04-08T16:30:28.633+10:00thanks so much for getting this issue out there in...thanks so much for getting this issue out there in such an eloquent way lara.The disconnect in consumer's heads -when oohing & ahhing over the quality, workmanship & uniqueness of handmade and the associated cost really does my head in-some people get it, but the for the majority I don't think there's a whole lot of thinking going on at the point of sale...we need to talk more about this, if we are to see handmade thrive in a country that has high cost of living and labour costs.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-5420869659028978292014-04-03T13:01:08.673+11:002014-04-03T13:01:08.673+11:00Pricing is always a difficult subject when it come...Pricing is always a difficult subject when it comes to handmade goods as the time involved in creating them can be way more than the cost of the actual materials.<br />We created a formula that will allow people to accurately work out their hourly rate by including overheads and tools as well since a lot of these things get left out when calculating cost.<br />We covered it in part of our A-Z series recently on our blog here:<br /><a href="http://www.craftmakerpro.com/a-z-handmade-business-guide/key-pricing-handmade-products/" rel="nofollow">http://www.craftmakerpro.com/a-z-handmade-business-guide/key-pricing-handmade-products/</a>Anonymoushttps://www.blogger.com/profile/03157856562856366336noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-59170073477473851972012-10-16T16:53:47.562+11:002012-10-16T16:53:47.562+11:00Thanks for this post! All make sense now. I've...Thanks for this post! All make sense now. I've been googling trying to find this information. So glad I have 'the formula' now. <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-57429670466206614942012-04-24T13:04:57.684+10:002012-04-24T13:04:57.684+10:00Your blog was recommended to me and I'm so gla...Your blog was recommended to me and I'm so glad I took the time to read your very useful information regarding pricing items you create. <br />I have just begun to sell my handmade silk creations and found it very difficult to put an actual price on my work. The 'formula' was very helpful, and from now on I shall work this in to my price structure. It is hard to know how much to charge for items that may have taken hours and involved many processes - people just don't understand the work that has gone in to its' creation. But I do think people will pay for something that is unique and know that they have a one off piece of wearable art. Thanks so much - I shall be a regular visitor. KKeshttps://www.blogger.com/profile/10003902325886265111noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-6391559449146713252012-03-18T02:28:26.160+11:002012-03-18T02:28:26.160+11:00Thanks for a very helpful post!
I think what I so...Thanks for a very helpful post!<br /><br />I think what I sometimes find most irritating is when people complain about the cost of handmade bespoke items, and compare them to cheap(er) items sold in chain stores, when I don't think that's always a fair comparison. And on the other hand, plenty of people are more than willing to spend a lot of money on established brands that charge as much as they do on brand recognition alone, not necessarily on quality.<br /><br />People will pay for more expensive things if they deem it's worth it. Now we just need the mindset about handmade goods to change, because it seems that too often that counts as being "lesser".<br /><br />One of the most important comments I read somewhere ages ago, regarding pricing your wares, also had to do with valuing your own work fairly, because if you didn't, nobody else would either.Mariekehttps://www.blogger.com/profile/16216728854039924510noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-57020591984075899602012-01-24T10:54:51.003+11:002012-01-24T10:54:51.003+11:00Brilliant stuff. Its good to know that while most ...Brilliant stuff. Its good to know that while most people say that 'pricing is an individual thing and there is no set formula' that for some instances there is and this formula is a heck of a lot easier than 'go with your gut' if nothing else it gives you a basic guide. Now to work out an hourly rate...Fluid Inkhttps://www.blogger.com/profile/14458482212399634184noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-65134224045824581642011-12-30T21:25:31.130+11:002011-12-30T21:25:31.130+11:00Amazing how simple it can be to communicate with p...Amazing how simple it can be to communicate with people and have them understand a certain topic, you made my day.<br /><br /><a href="http://www.printhead911.com/" rel="nofollow">Bulk Ink</a>printhttps://www.blogger.com/profile/10671669669985739614noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-67370105104041897602011-10-20T14:44:30.462+11:002011-10-20T14:44:30.462+11:00That's for your thought's H, I'm most ...That's for your thought's H, I'm most definitely not an inexperienced knitter and can certainly knit up a plain beret in a couple of hours. However, would you pay $50 for a plain beret when you could go an buy it from a department store for $10?<br />And going by the formula as set, $50 would cover the cost of time and materials only. To get a wholesale price you would need to double that figure making the plain beret cost $100. Your retail cost would then be $200.<br />I'm not saying the formula is flawed, in many cases it would certainly work very well, especially where you can have many things prepared and then do them in bulk (ie: screen printing shirts, or sewing purses) I was merely making a point that it doesn't apply to my craft of hand knitting which is slow and can not be done on a mass scale.The Restless Knitterhttps://www.blogger.com/profile/09232727882016547443noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-61975376710945176402011-10-20T13:35:05.237+11:002011-10-20T13:35:05.237+11:00Great topic that many of us struggle with. FWIW On...Great topic that many of us struggle with. FWIW One thing I would point out that I think about is how long would it take someone highly skilled and well setup to produce the same thing? For instance the beret example in the comments. A highly skilled and experienced knitter with good technique might be able to knit up a beret in a couple of hours, reducing the 10hour labour cost of $200, to only $40, making the cost price $50 rather than $210. Both might use the same materials and be of good workmanship. <br />I think you need to be realistic in your calculation and not charge people for your inexperience etc.<br />FWIWHhttps://www.blogger.com/profile/10302797519422420838noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-41489050570628293992011-10-13T17:06:30.775+11:002011-10-13T17:06:30.775+11:00I loved reading this post and all the comments tha...I loved reading this post and all the comments that went with it. A very interesting discussion.<br /><br />And I really appreciate having the formula spelled out for me as I'm just about to re-open my Etsy shop and start putting some renewed energy into my creative business. So thank you for helping me think about pricing in a sensible way.<br /><br />And you did make it look very pretty too!Cathy {tinniegirl}https://www.blogger.com/profile/08186441308733450681noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-16518257454553775132011-10-11T23:42:37.951+11:002011-10-11T23:42:37.951+11:00Great post who explain why handmade or small serie...Great post who explain why handmade or small series things are "so expensive" !! But in France, where I work and live, the retail price is wholesale x 2.5, because of the taxes (about 20% of the final price). It's really difficult to explain and justify the price to customers...Mademoiselle Dimanchehttp://www.mademoiselledimanche.comnoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-3032331032295261742011-10-11T08:07:48.854+11:002011-10-11T08:07:48.854+11:00Finally an interesting and educating topic... and ...Finally an interesting and educating topic... and oh so relevant. I'm so glad that we have been running our business as per 'the formula' with the exception of adding in our time (something to consider!). But it really does amaze me how people scorn at handmade prices but are happy to support larger retail stores who have offshore 'companies' (I say that loosely) who pay their staff less than what we would pay for a cup of coffee. Yeah how cool we can buy a t.shirt for under $10 elsewhere but where's the love and the ethical treatment of workers!.<br />Great work ladies!!! I commend you for your honesty. Not many businesses would disclose these facts (formulas) to customers... well done.Natalie Ynoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-77259515159095720252011-10-10T13:42:08.454+11:002011-10-10T13:42:08.454+11:00It is a great book! I bought it just before I sta...It is a great book! I bought it just before I started and it helped put Handmade into perspective! I also spend a bit of time trying to gently educate other Mums who just want a bargain - I mean don't we all... but it's different with handmade!!Rosalindhttps://www.blogger.com/profile/02728311414040686800noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-6816720687319364602011-10-04T15:58:56.557+11:002011-10-04T15:58:56.557+11:00GREAT POST!
Thank you...I really needed this!
Hav...GREAT POST!<br />Thank you...I really needed this!<br /><br />Have a great day<br />Char.xWe Blog Artistshttps://www.blogger.com/profile/11541903578606283179noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-88675263511021252652011-10-04T09:54:15.506+11:002011-10-04T09:54:15.506+11:00Hmm, really interesting. And great timing for me a...Hmm, really interesting. And great timing for me as I'm just starting to get into all this and wondering how much to charge for my wares. So thanks for the advice and good on you for being able to make a living out of what you do...Joannahttps://www.blogger.com/profile/14661467145292736426noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-62224444234719573672011-09-30T15:57:23.880+10:002011-09-30T15:57:23.880+10:00not sure if i will have anything original to add t...not sure if i will have anything original to add to this but - the right price = the right price for *you*. if your goal is to make a profit, use some kind of formula and price it as such. if your goal is to make money to buy more supplies and maybe have some leftover to get a nice dinner out every month, that's great; price it accordingly. <br /><br />makers who sell triangulate their work based on love of making and being creative, earning income, and the satisfaction of having other people enjoy your work by owning it. if you price for higher income/financial growth, this indicates to me that you are running a business and not a hobby. this is not to demean hobbyists, even ones who sell, but no matter your motives, money is at least part of the picture.Renahttp://www.renatom.netnoreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-22041847835898161852011-09-28T03:29:01.672+10:002011-09-28T03:29:01.672+10:00I enjoyed reading your post and the subsequent dis...I enjoyed reading your post and the subsequent discussions it has sparked.<br />Pricing handcrafted works is a hot topic and I was interested in hearing the comments from others.<br />I have personal experience sewing for production for a small business (which translated into getting paid 75cents for my labor for an item that retailed for $13); and I have had the experience of selling my own "one of a kind" items using the FORMULA(as I want a living from my work - not a monetary "pat on the head"). I found it tricky to balance out what the marketplace was willing to pay with what I needed to make it profitable to do. It was frustrating, but I decided that I had just not found my niche. Although I'm continuing to pursue my place in the market, my personal view is that I refuse to give my talents and time away for something less than a living - a business cannot survive without a profit and my creative spirit cannot thrive if I undervalue it. That's why I appreciate what you've shared in your post and I applaud your success.Katherinehttps://www.blogger.com/profile/01576487047505755889noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-89479866798551166142011-09-26T07:26:44.770+10:002011-09-26T07:26:44.770+10:00To all those who say they can't afford "h...To all those who say they can't afford "handmade" artists like Ink and Spindle have to make a living. Over the years as I built my business my ceramics have become more and more expensive which makes me feel bad that poorer people may not be able to afford them. However when you are trying to make a living you can't please everyone. I have had to accept that fact that in the main I make work for affluent people. It has always been the way. Fine crafters throughout history have been commissioned by the wealthy to create beautiful things. The way I subvert this process and make the work more democratic is to keep my eyes open for opportunities to simply give my work to deserving people and causes as many times a year as I can afford to. To give it to someone I feel would really love it a few times a year is part of what I see as one of the small ways to compensate for the fact that I cater to the well-heeled.Shannon Garsonhttps://www.blogger.com/profile/11064168403096353543noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-63452669053983163742011-09-25T21:16:33.787+10:002011-09-25T21:16:33.787+10:00Great post! My work sells at retail price regardle...Great post! My work sells at retail price regardless of whether I am selling it, or someone else. If I didn't, I'd be undercutting the wholesale accounts which have chosen to take a risk on me, and buy the work in quantity outright. <br /><br />Also, people will pay more than you think. After doing some math of my own, I had to increase prices on many items - some by as much as 50%. And guess what? I sell MORE of them.Lori Wattshttps://www.blogger.com/profile/08636118097692465116noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-32211466740989125822011-09-24T10:39:20.510+10:002011-09-24T10:39:20.510+10:00@Mariquilts: if you sell your stuff at wholesale t...@Mariquilts: if you sell your stuff at wholesale then you can't expect your customers to pay retail prices to purchase your work elsewhere. So you can't have your quilts stocked in a shop as you would be undercutting them.<br />If you don't sell anywhere, then it doesn't matter.The Restless Knitterhttps://www.blogger.com/profile/09232727882016547443noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-84584469487821581562011-09-24T04:32:10.442+10:002011-09-24T04:32:10.442+10:00Wonderful post and great formula.......I just disa...Wonderful post and great formula.......I just disagree with one aspect. I feel quilts sold online and at markets should be sold at wholesale price because you don't have to pay that forty or fifty percent, that you would have to give the owner of a retail space. I'm just curious on your reasoning.MariQuiltshttps://www.blogger.com/profile/07024634370648175612noreply@blogger.comtag:blogger.com,1999:blog-7738806450683516812.post-79698349731766233542011-09-23T22:59:38.305+10:002011-09-23T22:59:38.305+10:00@poppyprint, I guess my question for you is why do...@poppyprint, I guess my question for you is why do you think anyone *should* be able to make a living in handmade? I don't think anyone is obliged to pay handmade prices these days. If there's enough demand for your product at the prices you have to charge to make a living, great. The reality is, in my opinion, that for most crafters there won't be.Roshttps://www.blogger.com/profile/02669423378438380019noreply@blogger.com