As to the topic at hand, pricing is ALWAYS a tricky subject. When I started as a "craftperson," it was making bullropes for bull riders around the USA, Canada, and Australia. Nobody would show, or teach, anything, because it was (and still is) considered a "top secret cowboy art."
I spent a couple of years picking up what I could here and there...mainly a tidbit of information dropped by a braider that by its lonesome was of very little use. Over time, and many conversations, I pieced these bits of information together, and combined with what I was able to figure out through trial and error, I got to where I could actually make a rope. The first half-dozen were terrible. As a former bull rider, there was no way I'd use one, so I'd throw them away and start over.
When I got to the point that I could create something I'd actually USE, then I started riding with my own ropes. When it got to where other guys would actually ask--admiringly--where I got my ropes, then I figured I'd reached the point that I could let someone else use them. At that point, I GAVE A BUNCH TO A SELECT GROUP. The contingency for a freebie? If you have ANY problem with it, or don't like it for ANY reason, PLEEEEEZE come to me FIRST. That gave me the opportunity to fix the problem, and send a customer out with something that had been tweaked to their satisfaction. Ultimate goal? To have a bunch of guys on the road saying good things about my ropes...and about me.
What's it got to do with pricing? Well, not long after I had a dozen or so competitors actually using my stuff out in the big world, I did a little research on rope prices. At that time, you could get one that had been imported from Mexico for around $60 to $80. From a custom-maker for $140 to $180. What I did was take the "to" part of the price list and make that my starting price. In other words, if Maker A's ropes were $140 to $180, and he was the most expensive, then my starting price became $180.
My ropes were the most expensive in America at that time. Were they the "best?" I would never say that. Were they "as good" as the "best?" Absolutely.
I took over two years (actually closer to three years) to make darn sure that my rope would stand up to anyone else's. Long story short, I stayed booked an average of 6-months out for several years. Price was never an issue. I always stood firmly behind my work, fixed any problems IMMEDIATELY, and refunded, in full, if it was ever requested. Never, ever, get into an argument with one of your customers--the most you'll ever lose is the amount you refund when they return the product. If you argue, or refuse the refund, they'll badmouth you until they stop breathing.
The same applies to my leatherwork--whether it's a pair of chinks or chaps, or a roping saddle. With these items, I'm not the highest, but I never price anywhere near the lowest. I make saddles that start at $2500.00 and go up. My materials costs, before an ounce of labor, run close to $900.00 per saddle. Labor, goofs (and you'll make 'em) overhead...lights/phone/internet/website/glue/thread/stitcher maintenance/stamping tools/mallets/head knives/shipping/etc., etc., etc., figure into the $1600 gross profit. I might make a thousand dollars on a saddle I build if I get it done in a week, and there's no major disaster. But that never happens. Ever.
Real world example...a few weeks ago, I was cutting a saddle seat to fit a tree. I shouldn't admit this, but I did it, so I'll confess to it. I wasn't paying attention and I cut an ear (saddle part) off the piece I'd chosen for the seat. That's roughly a 9-square foot piece of premium Hermann Oak 13/15 ounce skirting. Around $65 worth of cowhide. I can make gun holsters from it, so there's a salvage factor there. Herein lies the problem...
You generally get ONE seat from a side of Hermann Oak. Or any other brand of veggie-tanned leather. Just ONE. No "do overs." My $65 boo-boo turned into a $175 boo-boo (plus shipping) because I had to buy another whole side to cut another seat.
The point of all this? Be good...be very good, at what you do. No matter what it is, just focus on being among the best at it. When you feel you've reached that point, then CHARGE ACCORDINGLY. Think about the multi-thousand dollar Hermes handbags...what's so dang special about them? Seriously. But they get their price, and create value in the minds of their owners. That's a win-win situation.
Compare the depth, and richness, of hand-carving or hand-tooling to what you'll find at a major catalog retailer...the difference between their embossing, and your hand-tooling. The difference between Hermann Oak and Tandy leather. Hold a piece of each...you'll immediately see and feel the difference.
The key is exposure. The folks that desire what you produce are out there--in abundance. They just haven't found you yet.
Figure your costs, and then accurately calculate the TIME it takes and the time you need to bill...and most importantly the amount you MUST charge for your time. And charge that.
If YOU don't believe that you're worth that amount, then keep working on it until you do. Then CHARGE THAT AMOUNT. Seriously...CHARGE WHAT YOU'RE WORTH. Visualize yourself as a product on a shelf. What is the dollar amount on the tag dangling from your arm, or neck? Figure that out, and charge it. Don't be shy--it's scary as heck at first, I promise. But once you've had a little practice, it becomes second nature.
There is NOTHING to be ashamed about when you're charging what you're worth. Just make damned sure ahead of time that you're worth that amount.
