Materials + Labour + Expenses + Profit = Wholesale x 2 = Retail
The above seller’s formula is what most craft business owners are told to use when working out how to price their items. It’s what isfair. I mean, let’s face it, as much as we crafters, artists and other creatives do what we do because we love it, if we’ve taken the leap into selling our makes, it’s because we want to see a return for the time, money and passion we’ve invested.
And rightly so.
But, see, there is a fundamental flaw in using the above formula which most if not all crafters have to also take into consideration; what consumers will actually pay. Most of the time the two figures don’t even come close to each other.
Don’t believe me? Let’s take a popular item and work it through: The featured image on this…
View original post 442 more words
Tiny & Toad 