I’ve just had a small(ish) rant on a Facebook page regarding how prices should be set for handmade items. I think quite a lot of us go from making things as a hobby to suddenly deciding we’ll try to sell our wares to try to earn a bit of cash without really thinking about the business behind. When deciding to setup a business, whether as a hobbyist or to take the leap into self-employment, it’s a good idea to try to work out who your target market are going to be. To do so you need to take into account a few pointers:
- What type of product are you going to be selling? Budget/high street/premium
- Will your products be unique, batch runs, or mass produced?
- What quality will your items be? How long will they be expected to last?
- Will your products include embellishments that can increase the pricing to make them stand out from the crowd?
From here you can start to build a brand that is recognisable against the sea of Joe Bloggs items that are similar to yours.
You also need to take into account who your target market are going to be:
- What disposable income will they have for spending on your items?
- What occasion are they going to be buying for?
- Their age range
- Who are these people and what do they do?
- What do they expect from vendors?
Once you’ve got an idea of your target market, your brand and the type of products your going to be selling you’ll get a good idea of your price point and if you’re happy to make 10 lower cost items for a high turnover than fewer higher cost items but fewer sales.