When you're just starting out, it can be tough to work out how much you can (and need to) sell your work for. Many people use a fomula based on the time involved, the materials used, the complexity or uniqueness of the item, and the market. A recognized professional, creating a unique product, can command higher prices. If you're selling something similar to someone else at a craft show, your prices will need to be competitive. Pricing takes time to get right. Be adaptable about it.
Difficulty: Hard
Time Required: On going
Here's How:
- Set an hourly rate for your labour. If you're doing decorative painting to earn a little extra income you can calculate this as a minimum, but this is not a long term strategy if you want to make your living from your decorative work. Then calculate how much time a project took you to complete and multiple this by your hourly labour rate to get the total labour cost for the project.
- Add up the total cost of all the materials used in the item. If you've used paints or materials you already had, or only a little bit, still add something because eventually you'll have to replace them. For very expensive or hard-to get materials, multiply the cost by two to allow for the price having gone up by the time you by some more.
- The labour cost plus the materials cost gives you the base cost for the item, but no profit yet. Now you have to decide what your market will accept and adjust the price accordingly. Look at the prices of what's being sold in the market to judge your own final prices. And how things are selling -- if you're having trouble keeping up with the demand, you can likely increase your prices, but if your work isn't selling, you should consider dropping the price a little (or having a sale).
- If someone commissions you for a large project, such as a mural, they'll want a quote for the entire job so they know the cost upfront. The hard part about doing this is ensuring you don't miss any step in your cost calculation, such as the initial preparation of the wall, doing multiple sketches of the design for approval, or underestimate how much time it'll take you. Fortunately experience does make this easier!
- For large commissions, draw up a simple contract setting out exactly what has been agreed to and a breakdown of your costs (the materials, your creative charges, the length of time you need to complete the project, subject matter etc.) for the client and you to sign. Make two copies so you've both got one. Include a sketch of the agreed design if you've already got one. This helps protect you from a client who changes their mind halfway through a project.
- The more demanding the client seems, the more detail you should put in the contract, perhaps even a colored sketch of the agreed design stipulating the exact colors to be used. Perhaps even a clause that covers changes above and beyond what you've already anticipated.
Tips:
- Market or location has a significant influence on price. Prosperous urban center generally charge higher prices for everything.
- Decorative artists with a professional reputation in the market will be able to charge a premium for their work. Don't neglect working on building up your name / brand / reputation.
- Check out About's Arts and Crafts Business section for loads of useful advice on starting a craft business.
