I have recently posted on my Facebook on this topic so decided to put it up here as well.
How do you price a hand made item? How do you value it?Inevitably hand made items do cost more than machine manufactured ones and many people struggle with that.However hand made means a lot more than what you are looking at. It contains individual design, originality & uniqueness. It contains love & passion. That you cannot get from a machine manufactured item.When pricing there is a lot to consider:
Time; materials; profit; design; packaging ;marketing; on line listing costs; charges such as cards or on-line transaction fees ;craft fair fees; retail store space rental or commission. For those who purchase licenses to enable them to use copyright designs that is another cost (I don't make these sort of things!).
For many of us, as much as our making is driven by passion and ability, this is also a business. We have to make money to survive.I work out my time costs based on the current national minimum wage. I don't include the time I spend on admin or travelling for example.These are things you would expect to be paid for in a more traditional workplace. Why should being self-employed be different?
So the next time you look at a handmade item - don't just consider what is in front of your eyes. Consider all that has gone into making it too.