business, Ireland, marketing, mentoring, social media marketing, strategy

How to Price Your Product (Short Read)

Many business owners struggle to work out pricing for their products, particularly if the product is hand made. Here is my quick formula!

Cost of Supplies + €10 per Hour Time Spent = Price A.
Cost of Supplies x 3 = Price B.
Price A + Price B divided by 2 (to get the average between these two prices) = Price C.
Compare Price C to your Market Research and adjust accordingly.

E.g. It takes 2 hours to dye €20 worth of  fabric

€20 Fabric + €20 Time = €40 (Price A)
€20 fabric x 3 = €60 Price B (€40 + €60) = €100.
Divided by 2 = €50 (Price C)

€50 should be in the range of the fair market price for my item. If €50 is too high, you’re either spending too much on supplies or working slower than other crafters.

If €50 is too low, work faster than other crafters, or try to get a better deal on supplies and raise your price a bit to have a fair market price and support the other artisans in your field.
Theses figures are for example only and to illustrate the formula 👍

Advertisements