Pricing

[reuben cogburn]

I, like a lot of other people here are trying to do this for a living, and I, like many others here are having a hard time putting a value on my work. I tend to price to low I think.

Let me try this as an example and you can all chime in. I make a bic cigarette lighter, keychain.. I'll take a pic soon. It isn't complicted.. Just a small piece of leather, folded over and sewn along one seam with a tab on one end to hold the keyring. The lighter simply slips into it.

I figure it takes about 15 minutes to make (assembly line style) and I may have 60 cents into it, in material, using 4/5oz, the rivet, and ring, dye, etc. I sell them retail for $5.00 and think they should wholesale in quantity for $2.50

Does that sound about right?... There is no stamping for design other than a french border, but I can do something a bit fancier if requested...

Any input?.. am I way off?..... Honestly I have never been good at valuing my stuff.....

Thanks!

reuben...

[Cyberthrasher]

Well, the small items like that aren't something I would base my living on, but they are something to get the name out there and put some bread in the cupboard.

That being said, if the craftsmanship is there, I'd say a better price for something like that would be $10 w/lighter included. I know you were just using the lighter case as an example, but you also have to remember to take your non-project specific time into consideration too. What about the time it takes you to sort through suppliers and find the best deal on products to use? How about driving/gas time to the post office to ship the items out or drive to a booth? What about the time you spent asking this question on how to better run your custom lighter case business? It seems like nickel and diming things but they are all valid "costs" associated with getting those little lighter cases out the door (and any other item you happen to create). And really, a cool Bic lighter case for $10 is a good deal.

There are lots of other discussions on pricing and the various formulas people use, but in the end you gotta charge a price that suits the item while still giving credit to yourself as an artist and the overall amount of time you put in. I started using an Android app on my phone that tracks time and where it all goes (as well as p/project, expenses, tax, revenue, etc...). It's called FTS Timesheet and really opens your eyes to all the stuff mentioned once you get it setup right.

[reuben cogburn]

Well, the small items like that aren't something I would base my living on, but they are something to get the name out there and put some bread in the cupboard.

That being said, if the craftsmanship is there, I'd say a better price for something like that would be $10 w/lighter included. I know you were just using the lighter case as an example, but you also have to remember to take your non-project specific time into consideration too. What about the time it takes you to sort through suppliers and find the best deal on products to use? How about driving/gas time to the post office to ship the items out or drive to a booth? What about the time you spent asking this question on how to better run your custom lighter case business? It seems like nickel and diming things but they are all valid "costs" associated with getting those little lighter cases out the door (and any other item you happen to create). And really, a cool Bic lighter case for $10 is a good deal.

There are lots of other discussions on pricing and the various formulas people use, but in the end you gotta charge a price that suits the item while still giving credit to yourself as an artist and the overall amount of time you put in. I started using an Android app on my phone that tracks time and where it all goes (as well as p/project, expenses, tax, revenue, etc...). It's called FTS Timesheet and really opens your eyes to all the stuff mentioned once you get it setup right.

Thanks for the input. I gave that example priarily because I recently calculated the material cost etc, for the wholesale and fleamarket crowd. I'd figure on this being a handy item more than a craft etc. The whole reason I built one in the first place was because everybody would steal my lighter, the minute I set it down.. Now I live in Alaska, and I do carry at least one lighter even though I don't smoke!

I also figure the keychain functions as a business card of sorts.... an impulse buy at the counter, and a tourist bobble.... more of a useful novelty! These guys are plain, of course... one that is border stamped or tooled would obviously be more. However these are in no way art!.. these are just.. assembled...

Thanks again and I hope there are more contributions and opinions!

reuben....

[Cyberthrasher]

Got pictures of any of them?

[reuben cogburn]

Got pictures of any of them?

I'll be taking a bunch of pics today.. I need to list some things online to sell.. I'll post the keychain. very very simple. Very utilitarian... and NOBODY steals your lighter!

Regards!

[Glendon]

Personally, what you're charging there feels a tad low. Here's a formula I found awhile back from Etsy.

So using your example, here's what I get. Say $1,00 in materials to be conservative. $20 per hour labor.

$1 + $5 = $6 wholesale x 2 = $12 retail

That would be about $38,400 per year if you were doing this full time. That wouldn't be what you pull down though because it isn't taking into account design time, shipping time, sales and marketing time, and everything else. This is why leather bags can reach $400 plus so easily. Leather is actually relatively cheap. It's labor cost that pushes the price up. You can of course drop your retail price on smalls since you don't need a 100% mark up. $8.50 $9 might be a more reasonable price, but I wouldn't drop below wholesale. Give yourself a fair hourly wage. What I like to do is take the profit I'd make if i sold something at a price, and calculate it out to see what I'd make if I did that full time. If that number seems reasonable, go ahead.

Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail

Edited May 24, 2012 by Glendon

[reuben cogburn]

Hi,

I'm not disputing any of the advice here at all. In fact it has brought to mind things I certainly didn't consider.

well.. here is the keychain (lighter not included!).. mat'l is 2.5" x 3", 4/5 oz, with a tab .5" x 2" (folded).. one segma snap.... and just a dab of neatsfoot and some good old sunshine... finish is either atom wax or similar....

These things aren't artsy or even creative!.. I see them as a puely functional accessory. Basically something you would grab in the checkout line at the store. An idea that I think is worth merit! I think that wholesale, it would be worth exploring...at least for volumne...