Calculating A Sale Price
The lighter evenings are here now and making me stay up longer to knit! I am having fun making knitted shawls of all shapes and sizes. I do, of course, have a stash of yarns from which to choose. My goal is to use as many as I can BEFORE I buy any more! We will see how that goes!
Yarns are so addictive; they come in so-o-o many different colours and textures. I like to support my local weavers and spinners by buying their hand-spun and hand-dyed yarns. Hearabouts they usually have a sale twice a year but I really should use up my stash first!
The colours of these hand-crafted yarns are much more subtle and muted and I prefer these to the commercial dyes. I would like to learn how to dye yarns but for the moment, I shall support the local artisans.
Markets and craft venues abound and people are looking for that unique, reasonably-priced item. Oh, how I wish I found it easy to price my work. I so enjoy making things but pricing them is always a challenge. Some shoppers believe that if an item is hand made then it should be cheaper than a mass-produced one however, those who know a bit about making unique and beautiful hand-crafted items understand the amount of time involved in their creation.
I have been given a formula for pricing hand-crafted items:
Hours spent on a piece x Hourly wage = Labour
Cost of materials plus labour = At Cost
At cost x 2 = Wholesale price
Wholesale x 2 = Retail Price
One of my small knitted and felted pouches takes me about four hours to knit, felt, sew in the lining and zip plus embroider so using the formula above, it would cost $32 if I calculated my time at $8 per hour. Even though I receive positive feedback, unfortunately shoppers are willing to pay $16-20. I wonder sometimes if it is worth my while making these specialised items.
Another suggestion for calculating a price is:
Cost of materials x 3 = Selling Price
I am pleased to say that I have been accepted to sell my work at a local craft venue in the Fall and it has been suggested that I make shawls and bigger bags to add to my repertoire. My latest shawl, the Purple Petunia, took over six hours to make so the labour alone would be $48!!
In the meantime, I shall be very happy knitting and knitting and knitting then think about pricing later!! Maybe I will have a brainwave and reach a happy medium before the Fall!