Anyway, as I have introduced new fabrics and some new designs I am needing to reassess my prices. Now I must say I find this the hardest part of my business.
So often people enquire about my products with much enthusiasm and then the dreaded question....how much will this be? I announce my price and all goes quiet!
I completely understand the pressure of budgeting and costs of living and raising a family these days, so I understand if something is beyond your budget. But from a business perspective it can be very hard to meet that happy price level.
So how do I go about setting my prices.
1. Firstly I make a product, and take note of how long it takes to make, the difficulty level, and the final appearance of the product. I do NOT take short cuts, I make sure everything is made and finished in the best possible way for the appearance, use and longevity of the product. For example a bucket hat could be made much more quickly if I did not topstitch all of the seams.....but would the hat be finished as nicely, would it last as long, how would it be if it was washed, would the seams all curl up on the inside???
2. Secondly I work out the costs of my materials - fabrics, interfacing, buttons, brooches, finishings, threads, labels etc. Because I like to offer a large range of fabrics I do not seek out sales of materials to be able to reduce my prices or make a greater profit...from a business perspective I offer what I know is really available and that I can obtain at a regular price on a regular basis.
3. Finally I do my market research. Now if I was to compare oranges to apples (for example a commercially produced bucket hat to my handmade bucket hat) then I simply could not compete. My materials could not even compete with a commercially produced hat let alone adding in my time. So I compare apples to apples. I do compare my products with other handmade hats. How are they priced, what is the point of difference? quality of workmanship, quality of materials, finishing etc. I then set my prices based on the general market. If my prices are set higher it is because I believe my quality is superior. Again the bucket hat example, I see many bucket hats for around the $25- $28 mark. However they are not topstitched on each seam, they are not even around the brim, and the hats may not even be sewn or cut straight. So after having made and sold over 300 bucket hats I am confident that my price of $32 is a reasonable and a fair market price.
But from a business perspective, and I am sure many handmade business owners will agree....is it that simple. Is it as back and white as materials and time?
This is such a struggle for me, as I not only make all the products myself, I also design them, draft my patterns, photograph my products, edit my photos, do my invoicing, accounting, emails, marketing etc......and so should this "work" be factored into my prices, as it is for commercially produced products that consumers buy every day?
So what is fair for me.....and what is fair for the customer? At the end of the day my business would be nothing without my customers.
So here I stand, still pondering....I would love your feedback, your opinions, advice, experiences and anything you can share on this topic.......please?
xx
1 comment:
I think your prices are completely justified. I own 7 W&C hats (and need to order more!) and my son's in particular looks as good as the day we bought it. And oh boy has he worn it! It has been through the wash, ironed and slapped back on his head. He has proudly shown people how it can be reversed to go both ways - and a 4yo (now 5) doing that isn't exactly gentle. Yet not a stitch out of place!
So stick to your guns beautiful girl and know that there will be some that can't afford it or don't see the value in it but many, like me will continue to come back for more.
xxx
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