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  • Pricing

    does anybody have a formula for pricing of products or a good book on how to price your items

  • #2
    What are you trying to price?
    Betty

    "Congress needs to realize it is a government of the people, by the people and for the people. Not of the people, by the people and for Congress." - Dr. Benjamin Carson, Pediatric Neurosurgeon, Johns Hopkins Hospital

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    • #3
      Figure out what you want to make per hour and keep track of your time when making things.

      Example -- you stack cut and finish 4 ornaments in 1-1/2 hours. You decide you want to make $15 per hour. Time spent works out to $22.50. Divide that by four ornaments and sell them for $5.75 each.

      Sorry - you shouldn't include time waiting for oil, glue or finish to dry.

      Tony

      My Son-in-law said "Darnit, I cut this board twice, now. And it's still too short."

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      • #4
        Don't forget to add in raw material costs, consumable costs, and if you are doing this as more than a hobby, costs to run the shop.


        "Time to give back."
        "Time to Give Back"

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        • #5
          To me, what really adds to the difficulty is you need to think of where you are going to sell and what the market will bear ("bear" or "bare" after reading the difference,,, I am still confused). Especially if doing craft shows. Crafts sell well in some area, not so well in others.
          AKA Paul from Washington State

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          • #6
            Area makes a big difference. In our rural area, prices need to be lower than a large city.
            Denny
            ArtCrafters in Dayton, TN

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            • #7
              No matter what you charge there will be some who claim it is to high or to low.
              Brian in the Four Corners

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              • #8
                "But I can get that at the Dollar/Walmart/Thrift store for a buck". Laughter is the best cure to deal with them!
                On the serious side everyone here makes valid points and market conditions are as much a determining factor as everything else combined. It's nice to make a little money at it, but it's within our passion that we find our biggest reward.
                Linda at www.ArtIngrained.com

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                • #9
                  Originally posted by Sandy Oaks View Post
                  Area makes a big difference. In our rural area, prices need to be lower than a large city.
                  Denny,
                  Do you think you can get some of our pen turners on IAP to understand this concept? We recently had this discussion on that pen forum and after three or four pages of responses, there were still those that think there are not poor sales areas, just poor salesmanship. Actually, their repeated response was - If you have the attitude you can't sell pens for $200 or more then you can't . . . attributing it to "attitude" ONLY. These guys were from metro areas, or sold only in large sales events with larger crowds.

                  Hank Lee
                  Experience is what you get when you don't get what you wanted.

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                  • #10
                    Some of the posts remind me of an event I was selling at a few years ago. There was another scroll sawyer there and when we talked he frowned on the fact that I stack cut most of my things. His were all individually cut from nice woods. One examples was a nativity cross he cut from oak and priced at around $30.00 or so. I must say it was a nice piece. I had the same cross pattern I stack cut from 1/8” Baltic birch 5 at a time priced at $25.00ea.

                    In the end he still had the one cross while I sold out. He was complaining that this was one of his worst shows and he was thinking of giving up doing shows. For me, it was one of the best shows I’d had.

                    The real problem was he brought his scroll saw to do ‘demos’ on. He told me it was the only way to attract people and drive sales. I walking past his booth a few times and he was usually concentrating on running his saw or he was sitting in the back with his arms crossed and a ‘resting frown’ on his face just waiting for someone to approach him. I ‘drive sales’ by trying to greet everyone who comes near my booth and do what I can to be friendly and keep a smile.

                    I guess the point is to get sales at an event, pricing is important, but so is being friendly and approachable. People generally won’t want to ‘interrupt’ you if they think you are in the middle of something – even resting.

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                    • #11
                      Mark, you must have been typing at the same time I was. You are absolutely correct about how you present your wares. My wife does the selling and I am outside of the booth (table) talking to the people and explaining the process. We both enjoy the interaction with our customers.

                      I do feel that where you sell your work has a significant bearing on what you can charge. For many years I have sold my work at our local church at our annual Christmas bazaar and for the past few years at a consignment event the tree days after Thanksgiving. I do live in a relatively financially comfortable area but my customers are looking for something unique, visually appealing and well made. I am blessed to have many repeat customers.
                      Regarding price. My ornaments are my bread and butter , Material cost 1.5mm thinfin sheet 50x50 inches $44.70, cut into 4 x 4 " sguares .29 cents /square, stack cut six at a time and finish ~hour. We box the ornaments in a clear top box .50 cents each. So with and added few cents here and there I say may cost is $5 for six ornaments. I sell the most complex for $12 each and the lesser $10 each. so my return is $55 to $67 for an hour of my time. On other items like individual nativities and intarsia pieces my return is not as substantial but some of these items are what visually pull new customers to our table.
                      With our boxed ornaments people can take them home wrap them and have an inexpensive unique gift.

                      Final comments, it takes time to develop a customer base, have a variety of work (no fuzzy edges) the work needs to look and feel good. Do not negotiate or discount, it is not fair to the other customers.
                      Last edited by Rolf; 08-18-2018, 08:30 AM.
                      Rolf
                      RBI G4 Hawk, Delta SS350, Nova 1624 DVR XP
                      Philosophy "I don't know that I can't, therefore I can"
                      Proud Member of the Long Island Woodworkers Club
                      And the Long Island Scrollsaw Association

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                      • #12
                        Originally posted by leehljp View Post

                        Denny,
                        Do you think you can get some of our pen turners on IAP to understand this concept? We recently had this discussion on that pen forum and after three or four pages of responses, there were still those that think there are not poor sales areas, just poor salesmanship. Actually, their repeated response was - If you have the attitude you can't sell pens for $200 or more then you can't . . . attributing it to "attitude" ONLY. These guys were from metro areas, or sold only in large sales events with larger crowds.
                        Lee, we have a pen turner displayed at ArtCrafters. Many of the pens are $25 and we sell maybe 4 - 5 each month. I am sure at a place like Knoxville he could more than double the price.
                        Denny
                        ArtCrafters in Dayton, TN

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                        • #13
                          Pens are tricky. They are hard to sell at craft shows but go to the pen show in DC and they sell for the thousands. Upper class shows and they sell for hundreds. Go figure. Never ever change prices during a show. No glue showing. Smooth finish. When a customer tells me the wood feels soft I know I nailed it. Some items I make $10 some $200 with most $25-$95. Look nice and smile smile smile.
                          Betty

                          "Congress needs to realize it is a government of the people, by the people and for the people. Not of the people, by the people and for Congress." - Dr. Benjamin Carson, Pediatric Neurosurgeon, Johns Hopkins Hospital

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                          • #14
                            Originally posted by markdavd View Post
                            ...

                            "The real problem was he brought his scroll saw to do ‘demos’ on. ..."
                            I agree. I tried this and found that even those that were interested in my work at the saw only watch for 30 seconds or so and then move on to look at my display. I then need to stop sawing and go to selling. I no longer take my saw to shows.
                            Hegner Polymax- 3,Hegner Multimax-3,
                            No PHD, but I have my GED and my DD 214"
                            Website https://craftingcouple.com/

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                            • #15
                              I never took mine. Too much of a hassle. I have seen where people are demonstrating something, a few people gather to watch and block the area and sales are lost as people move on. Bruce is a talker and when he starts talking, usually in the middle of the table, I just “bump” him and point my finger to the end of the table. My polite way of telling him to get the heck out of the way of customers. With a smile on my face. You think he would know by now.👉
                              Betty

                              "Congress needs to realize it is a government of the people, by the people and for the people. Not of the people, by the people and for Congress." - Dr. Benjamin Carson, Pediatric Neurosurgeon, Johns Hopkins Hospital

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