How Much Do You Charge $$$$$ For A Wallet ?

[ETW Grumpy]

Redmoon gets around $400-600 for theirs

They also sell a piece of brass dog leash with a couple of clips on the ends for $135. Really? That whole "fool and his money thing." I understand what LTC is saying and yeah, If you can get it, get it, just look at Pro athletes for example. (No hate mail please, it's just an example). I also agree with jmann in that I could not charge that for a wallet even if the quality was that good.

To ConradPark, That was an excellent explanation of micro economics for the craftsman, I learned several things myself. May have to start charging $350 for a wallet after all.

Finally, to the OP, Conrad's explanation is very good and you should consider the principles involved, and BadHides response was kind of a rubber-meets-the-road distillaton of Conrad's. Both good answers for sure.

My bit of advice is if you are going to compare the prices of other leather workers producing items similar to yours, you should really look at local craftsmen and try to find out how long they have been doing this and compare other variables like time, shop rate etc. Comparing your price to other craftsmen in other places is kind of apples and oranges because you don't have access to the data; labor rates, tax rates, cost of material, cost of living etc. Just my $.02.

I like badhide's suggestion of keeping a record of start/stop times and all that. That's the only real way to know the specifics. As my last employer stressed repeatedly, "It's all about the data. Without data it's just a rumor." (Always hated that statement.)

[LTC]

Your customers are not the same as my customers.

You have your market and I have mine.

[rawr66]

The first thing you should do is price out the wallet's raw cost. Find the cost per square inch, add for hardware, and add for waste material. Then put your cost on top of that. Not every wallet will cost the same. It depends on the type and amount of leather used.

[dragonworks]

I get $75 to $100 for the wallets I make. People actually see, feel and smell them when picked up. They instantly take their old wallet outand compare how hefty mine is , how solid, well made......they always snort the thing like its heaven or something. A few have told me they would pay $200 if I actually charged that.....but im not a theif. They work hard for their money as do we all. I make it worth my time....sometimes....sometimes I just get carried away as the one I just posted. Lol

[DavidL]

if Company A can turn out 4 wallets for $60 ea, Its the same as one wallet by company B for 200. Also provided that company A has 4 times the buyers and is machine sewing rather than hand stitching.

If A company can sell 400 wallets a month its the same as company B selling 100.

However if company C can sell at 300 a wallet, the process takes as much time as company A and they have as many buyers as company A then they have the best scenario. Which is what leatherworkers are more keen to look for since they don't have as much resources, time and employees as a big company like Roots for example who sell leather wallets and bags.

If your out to make the best of your company then its a war against every other company that sells to your audience. Where the consumers have a choice to buy from 3 or 4 different companies, you have to beat out the others by the things listed below.

The most important aspect is if people see your brand as better than the competition, are there any designs or products that you can't find anywhere else? Does the company feel like a professional company where you are assured the products are high quality? Is this brand popular? Is it worth my money? Does the product fit my lifestyle?

You should have the answers to all the questions yourself and try to create your brand through your vision, using your business strategy combined with marketing tactics.

To add to the pricing discussion there is a market for 5 dollar shirts, 20 dollar shirts, 100 dollars shirts, 1000 dollars shirts. All selling to different classes of people. Low class- middle class- upper class.The more reputable your brand the more likely you are able to sell the higher end. The higher end you sell the higher the profit margin. Wallet could cost 20 dollars to make and sell for 400.

At the end of the day a seller that sell 15 dollar shirts can make more revenue than the company selling 100 dollar shirts, so pricing is not indicative of a better company.

Edited July 12, 2014 by DavidL

[tassiespirit]

There is much to think about, but another thing is what does the customer want? Does he/she want a wallet that is heavy solid and strong or softer thinner and easy to place in the pocket( and which pocket - pants or jacket). i.e. who is your target market?

It is easy to say here is my item, but then to find out that is not what the buyer wants in your area.

It takes time and effort to get the message out there and get feed back. Also, maybe the way you present your wallet to them helps, like wrapped in tissue paper and placed in a correct sized box ( yes it adds to the cost) but will show the customer that you respect what you make - it's one of a kind, hand made heirloom.

Well , it could be but I think you get my drift there. I am only doing stuff as my health will let me and it is low end stuff and limited runs. In other words sold little but I have gotten some great feedback.

Edited July 23, 2014 by tassiespirit

[Bullfinch]

Hello everyone! I'm new to your forums, but after reading couple of different threads here I know this is a great place to learn.

Thank you ConradPark for taking your time to post such a detailed answer. I was wondering for a while now, about a prospect of pricing what is still just a hobby for me. It helped me a lot to get a persective on my ideas of pricing :}.

[Jimmy McLaughlin]

I only make belts and small cases for friends. I find it hard to see how anybody can make a profit doing leather goods. I give all you folks who do this for a living credit. Especially the real artist among you folks, I have seen things on this site that are truly beautiful. I love this site, keep up the great work that you all do.

Jim

[ConradPark]

This is not an reply to anyone in particular, even if it might bring up things that have been mentioned above. Just an (several years later) add on to my earlier post.

Business is business, and with that I mean that it's a skill and learning experience that sometimes takes years - regardless if you have an education or not - to succeed with. But running a company, even if you're just self employed, is such a far step from having a secure day job and then just meddling with something as a hobby. Just in the part of East London where I have my work studio (there are around a dozen professional leather workers that all have their own companies, either self employed, or with one or to employees, that I share work space with) there are at least a few hundred businesses that revolves completely around leather, everything from suppliers of material, to bag and accessories manufacturing, to design studios and craft studios, like the one I'm in, to clobbers, bespoke shoe makers, saddlers, upholstery shops, and the list goes on and on. And I'm talking about the local neighborhood now. So here must be a few thousand people that make a living of working with leather in one way or another. I have had my business since 2013 as a full time occupation, but of course it took many years before that to be able to completely support myself. Hard work and finding a niche that you love and learning about business, basic accounting, marketing etc. especially the boring stuff, because they are often the most important.

One thing is for sure, and this is about anything in life - if one think something is NOT going to work out, you're probably correct. It is only if you really want something, that there is a chance for it to happen. And most likely you will fail and have to try again, and adjust and try again several times to succeed. Sounds like it is nothing you want to do? Well, then just enjoy doing it as an hobby! Simple.

Edited February 20, 2017 by ConradPark

[bikermutt07]

I never want to be a business owner again. I like playing with my leather. I like making what I want as slow as I want. It will stay fun at this pace for decades. I sell a few things now, but I will never try to live off of my hobby again.

I once had a motorcycle magazine. I rode my bike all over covering events. Sometimes three a day on weekends. Sure sounds like fun, right? Wrong. Watching everyone else having fun while you are staying sober trying to promote yourself to hundreds of people one at a time over and over just to speed off to the next place and do it again and again. And it didn't matter what the weather was like, you "had" to ride. I put a lot of miles on my bike doing that. It totally ruined riding for me. I haven't put 2000 miles on my bike in the last 5 years. As a matter of fact, I am so over it I have my bike up for sale.

Turning what you love into a business is not a good idea, unless you also love business. If you just want to love what you do, keep doing it for someone who loves business.

.02