How do you price time?

[Mjolnir]

I keep seeing this question. I've asked it myself. You've made art, how do you put a price on your heart, time and soul. Material cost I understand. Being told ask twice the price of the materials I do not. What I keep seeing is the question of time. I could ask myself how much am I worth hourly but is my worth being truly applied to all that time? I posted once that the time was relative, the first response was, ' well since the time is irrelevant...'. No. I said, ' Relative.' I love making things. the time fly's by. A lot of shops I've seen have TV's. At the very least I think a lot of us are listening to the radio. The point is it's multitasking. I can finish a piece of art during commercial breaks, i.e., wasted time utilized. Me. personally. I would give my time away to find out what it is worth. I do want to make money at this someday. but I want to build a shop this year, and if I can do it by wasting a little time so be it:)

[rodneywt1180b]

I think that's a question we all struggle with.  I don't have to make a living making canes.  It's additional income for my disability.  (I'm a cancer patient who's missing a leg.) That gives me the luxury of being more flexible for my pricing.  I sell on Etsy.  Right now it's about the best online market for what I do and the fees aren't bad.  What I did is look at other people's work that I felt was comparable in workmanship to mine.  I threw out the unreasonably high and low priced numbers (IMO anyway) and based my work on that rough average.  I also looked at their sales numbers to get a feel for how many they were selling in their price ranges. I try to offer a product that's a little better for roughly the same price point than what other people are doing.  I also try to offer a product that isn't the same as others.  Right now that works out to about $8 to $10 per hour for me per cane I sell.  Not a living wage and not all sell quickly.  Based on my sales the last year I think I'm in the right ballpark for my canes.

Don't try to compete with places like China and Eastern Europe and don't get caught up in a race to the bottom on your prices.  You're offering a hand made product made by one person, not something mass produced at slave labor prices in  a factory setting.  People either appreciate that and are willing to pay more or they're not.  Sell to those who value uniqueness.

[Mark842]

For myself, standard manufacturing, clicking and machine sewing and basketweave type stamping I pay myself $25 an hour. I've been doing it a while so i can get a lot done in an hour. Free hand type tooling for one off designs are done by one of my employees who is far more skilled that I and is very experienced. We either negotiate flat rate or we calculate an estimated time and figure it at $100 per hour.

[TacticallySharp]

In my case in a past life fresh out of college I was an Accountant. Worked based on time that we charged clients for, as time progressed I left accounting as a CPA, and went into commercial photography again charged base on time. As a photographer I had nackgound sound in all my shoots, and at both studios.

I keep a clock at each eand of my shop, and a paper planner with start, and finish times. I transfer the info to my cellphone program Microsoft One Note, store info on the cloud.  Access and update it on my shop computer, to keep track of time, and materials cost. 

Being abladesmith also iuse the same system so I can keep track of production, and custom work in each place. 

I have different hourly rates: leather at $50 ph, forged knives at $80 ph. Smaller items take a shorter time to do mainly, and less time means lower price.

I'v been in leather for 50+years, full time for 12 years. Knifemaking for 20 years, full time bladesmith for 8+. Most important I have a following that buys my knives, thus my sheaths for them, either production, or custom...

I charge total cost of materials plus 15% for handling. Also remember the cost of tools, expansion of tools, cost of space, and utilities. They all need to be covered in/by your hourly rate. Cost of website, and social media time to promote yourself.  . 

You need to determine your rate, and remember custom, and handmade cost more than store bought. It's unique, and an item that will be the only one like it in the world. No two no matter how good you are, are every the same...

 

If you sell your craft, and it all sells fast with no one saying how expensive it is. You are below the price of your work. I do both of my crafts as a full time craftsman. If they believe it is good enough to buy, so will the next prospect. I only discount price to military,  veterans, first responders, and clients buying very large volume of production items at the same time.

Hope this helps you.

Edit: I'm a one man shop full time craftsman opening a summer shop in NC at my vacation home in Haywood county this summer. That way we can spend the summer there with our grandkids for some added family time...

Edited December 23, 2017 by TacticallySharp

[Mjolnir]

37 minutes ago, TacticallySharp said:

 

I'v been in leather for 50+years, full time for 12 years.

please post this on my Show your Shop thread!

Three responses and a lifetime of advice. Thank you all!

Now it's bedtime and that is the most valuable time at the moment  I'm on vacation next week so I guess I'm getting paid to make some things.

[bikermutt07]

I have just decided to take my own advice to the next level. I have shared many times with newbies about batch work in the beginning.

I am about to start doing this method on my wallets.

One could do this in the custom world to a point, I imagine.

Make your custom pieces along with your stock ones to the point of having to do the customization. Then continue on with your stock pieces through the finish.

Display these online or at a show and take a custom order or three. Then finish your three customs out together.

I haven't tried this, but I don't see why it can't be applied.

I have done several little one offs in my hobby and they take me forever. But if I do five at once, I don't see it taking much longer than the one item.

I know it's a little off topic, but I hope it helps.

[rodneywt1180b]

Leather isn't my primary thing.  I can only do batch work on my canes to a limited extent.  It is much more efficient when you can make it work though.  I like to finish several canes at a time.  The time difference isn't that much different between 1 or 6 of them at once and the waste and cleanup is exactly the same for either amount.  The wood work on them is completed one at a time and mostly by hand.  I use machines for the roughing out stages but the final shaping and sanding is all hand work.

 

[bikermutt07]

5 minutes ago, rodneywt1180b said:

Leather isn't my primary thing.  I can only do batch work on my canes to a limited extent.  It is much more efficient when you can make it work though.  I like to finish several canes at a time.  The time difference isn't that much different between 1 or 6 of them at once and the waste and cleanup is exactly the same for either amount.  The wood work on them is completed one at a time and mostly by hand.  I use machines for the roughing out stages but the final shaping and sanding is all hand work.

 

I follow you. I am only an aspiring hobbyist. And I'm not really looking to make money at it to speak of.

After 2 failed business attempts I have no desire to be in business again. And only after this did I realize that you have to be serving more than one customer at a time. Look at any retail situation, be it food, clothing, hardware, anything really. To be making money, you have to serve more than one at a time.

Now custom work is a different beast, but i doubt anyone is "making it" doing one item for one customer at a time.

[rodneywt1180b]

Most of my canes are built on spec.  I make the cane then cut it to length and install the tip after it's bought.  I generally have a few in various stages of completion at all times.  I also do custom work and enjoy it.  I like the challenge and it helps keep it interesting for me.

I price my custom work the same as my other canes and add additional materials to the cost if I have to buy them.