How do you guys calculate your prices?
I researched a bit and came up with the following formula:
- Material costs +
- hourly rate+
- 30% markup on the above costs for the time and shipping to buy the materials, wear and tear, maintenance of the machines and tools used, packaging, etc. and last but not least the yield or winnings +
This would mean that the price for the bracelet below would calculate as follows:
- Material costs - 4
- hourly rate of lets say 15 dollars- 4 hours of work is 60 dollars
- 30% markup - 19.20
So the final price would be 83.20
And I really think that if someone likes it and understands how much work goes into such a creation, they will pay for it. So if you like it, hurry and go to Waterrose and buy one or two! I am not selling mine - it is mine!:)
On the inside I made a little wallet to hide emergency money.
Another thing is that I think sometimes we have to realize that a specific product cannot be sold for economical reasons. Someone asked me recently if I would sell / make to sell the door frame theatre. I told her that I would charge 120 euros for it and also sent her some links to commercially made ones that cost about 30. I think that she must have fallen off her chair as she read my mail:) And honestly, I do not blame her, because if you can get a theater for 30 that fulfills its purpose - if that were your intention, then why would you pay 120? OK, I could argue that no one has it, that is probably of a better quality, that the applique is more intricate and personal etc. And if I think about it and calculate the price according to the formula, 120 would have not even cut it. Conclusion: This product is not sell-able because of economical reasons.
Calculation for the theatre: Material - 50, hourly rate - 9 hours is 135, Markup - 55.50, final price - 240,50
I am shocked! But it is true. Please note that I used designer fabrics and that imported fabric is about 3 times as expensive here in Germany in comparison to the US.
Made a few more of the cute cuffs...
This one would be one of those not sell- able ones:) 11 hours of work!
this is a variation made with the embroidery machine
and this one made with heat transfer