I’ve been having a conversation this morning with my sister about how to price the things we make.We both differ in our opinions. I think this is something that most people deliberate on when they first start out selling their handmade items. We tend to believe that Joe Bloggs that shops on the high street isn’t going to pay what our item and our time is worth.
I’ll give an example, I recently made a cotton crown which probably cost me about £1 to make as the pattern was free. It took me 30 minutes to complete including weaving in the ends. There are listings on Etsy selling similar items for £2.50. However, if I sold mine for that price, which is what my sister considers is fair, then I’d be making a measly £3 an hour. My initial thoughts were the crown should be priced at about £5, this took into account that I could make 2 in an hour costing me £2, however my time would be £8/hr which I thought given that I have to sit there and make the item was much more reasonable and I’d be happy with that.
My sister didn’t see it that way. She’s of the viewpoint that if people can buy the same item for cheaper elsewhere then why would they buy my item at £5. I’ve read several blogs on this very topic, and what they all seem to resonate is that when they rose their prices the number of sales increased. This seemed to go against logic, but then should we not be aiming our target market at those that are happy to pay for our time and not slog our guts out trying to make cheap items in mass? Does that not detract away from the beauty of handmade in the first place? What do you think?