How to Price Crafts For Your Home-Based Business One of the most difficult aspects in a home-based business that sells crafts is setting the price. Many crafters sell themselves short and do not make the profit that they could make because they are afraid of how much they should be charging people. In this article we give you some practical advice on how you can price your crafts to maximize the profits for your home-based business. Work Out the Cost of Your Craft Materials Required for your Home-Based Business Think about what you are selling and what materials are required to make it. Write down each item and how much it costs and how many items it will make. You do not need to add materials that make hundreds of products, but if something will only make a few products then add this to the materials cost. Once you have worked this out you will be able to calculate the cost of materials for one finished product.
How Much Are You Worth per Hour? Another factor to take into consideration is how much you are worth per hour. Your home-based business is a business and this means that you deserve your pay, don't cut yourself short and charge less than you are really worth.
Stick to your Prices Once you have calculated a price based on the cost of materials and the hours it took you to make it stick to this price. You may decide that you are willing to offer discounts at certain times or barter these items but then have a set idea of how much you are willing to offer as a discount, under what circumstances and what the value of the item is when bartering. Don't lower your prices just because someone didn't buy it, if they didn't then someone else will. Keep the standard of your home-based business high. Setting prices on crafts is often considered a difficult aspect of having a home-based business that sells crafts. In order to set your price however you should look at the cost of the materials and your hourly rate and stick to this. If you are going to offer discounts or bartering then decide on your terms beforehand and do not just back down because someone will not buy it at the price you are requesting.
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Published on Sep 26, 2012