Pricing ?

[dfrensdorff]

Hello All .... Not sure this is the forum for this, but it gets the most activity so I will start here.......if this post belongs somewhere else please let me know......

I made this guitar strap for my son (premium veg tan from The Hide House lined with Horween Horsefront).........his guitar teacher saw it and wants to know what I would sell one for.....? I have seen some prices on line.....big range from made in China to made in a one man shop in the USA ....prices range big time as well.......I want to be fair....I appreciate any and all advise on this....thanks and Merry Christmas to all.......

[Troy I]

I just do leather work as a hobby...the price that I charge is the cost of all materials, plus shipping...times 2. This keeps me in leather with a little extra for my time and adult beverages...lol

[NVLeatherWorx]

Your pricing would depend on how many more of those you would wish to sell. Bottom line: if you get enough people asking for them because they saw one you did for someone else then you would be considered as "in business" and that changes the whole pricing concept. You also have to keep in mind OUR market (I am also in Nevada, Fernley to be more specific) and I can tell you as an official business man that the customer base in our area doesn't quite understand what goes into making things and really don't understand why we don't price more like Walmart. It is a hard thing to set what you think is fair while also trying to keep yourself in business, if that is what you are doing, but if it is just a hobby then try going with a formula of materials x 40% (or whatever number you choose) for profit then multiply by 2 and there you go. My pricing formula is a bit more detailed as I have overhead and many other things to take into consideration.

Good luck with your pricing and may this Holiday Season be a good one.

[Halitech]

I'm with Troy as I do this more as a hobby then a business so I usually double the cost of the leather and then 10% more of the actual shipping cost if I'm shipping it. Ultimately it will come down to what the market in your area will support. If your cost is 50.00 but others are selling for 75.00, then unless you have a much superior product (both in quality of materials and workmanship) then you will have to adjust accordingly. On the other hand if your cost is 25.00 and others are selling for 75.00 but lesser quality, then sell for 75.00 and you'll probably sell more.

[dfrensdorff]

Thank you all. Very good information. I will figure out material cost and see what that comes to on this. Merry Christmas!

[Troy I]

Merry Christmas to you too...what ever price you put on is fine as long as you are happy and your customer is happy...don't beat yourself up over pricing...every area is different and what their willing to pay...I'm on the eastern side of the United States and I sell and send almost everything to the Midwest or West Coast.

Good luck.

[Dwight]

Years ago (actually several decades ago) I worked for a construction electrician. I kinda took a look at how he seemed to price his work / product.

It was basically a "material x 3" for the final price. 1/3 went for material, . . . 1/3 went for tools, minor consumables, permits, and other "costs" of running the business, . . . and 1/3 went for profit.

When I opened my sign shop later, . . . used the same formula, . . . worked there.

Now using it in my leather business, . . . again, . . . works for me.

May God bless,

Dwight