15 Tips on Pricing
There’s a lot of chat on here and the facebook group about pricing. I put together these tips to help give some pointers when working out price.
-
Charge what the customer will pay - not what you would pay - you always undervalue your own work.
-
Pricing based on time plus materials is usually the wrong way to price.
-
When calculating costs, include your fixed overheads as well as per item costs.
-
Don’t forget packing and shipping which can be expensive.
-
If you are too busy, put your prices up, you are undercharging.
-
Adjust your pricing - if an item sells well put the price up, if it sells badly, drop the price (or the item)
-
Repeat work should be cheaper - your existing customers are the easiest ones to find and market to.
-
Or: give discounts or coupons to existing customers
-
Be absolutely clear how much you need to earn per hour for this to be worth it. The answer may be 0 - its for fun, or a proper wage
-
If this is your sole income - make sure you have enough pay for holidays, sick days, pensions, insurance, etc etc etc
-
If this is for fun, make sure you are still having fun doing work
-
When the difference between cost price and sell price is small, a small change price is a big change in profit
-
Value your time!
-
Your product is ONLY worth what a customer will pay
-
Your product IS worth what a customer will pay