Pricing and selling homemade crafts
Pricing and Selling Homemade Crafts is a free class that teaches the financial side of starting your own craft business.
Published on: Mar 4, 2016
Transcripts - Pricing and selling homemade crafts
Pricing & SellingYour Candles
Before you decide on a price that you will charge for your merchandise, you
must first figure out your total costs for making your candles or crafts. In this
cost analysis, make sure you include: cost of materials to make the candles or
crafts, cost of utilities to make the candles or crafts, cost of office supplies such
as labels, ink, ect., cost of labor paid out, cost of packaging, cost of advertising,
and an estimate of what your time is worth per candle or craft made.
Once you have your total cost per unit figured out, you will want to sell your
candles or crafts at (cost X 2) for wholesale, and (cost X 3 ) for retail. Make
sure you do a market analysis before you decide on your prices. Pricing your
products too high will lower your demand unless the quality and packaging is
exceptional, and pricing your candles or crafts too low will also lower your
market because customers will think your products are lower quality (that is
unless you sell them at an outlet store or a similar type setting).
Here are some ideas that candle makers and crafters have used in the past in
order to market their candles and crafts.
(1) Selling candles or crafts to country stores or gift shops on a consignment
basis. This means that when the candles sell, the owner of the shop gets an
average of 25%, and you keep the rest.
(2) Selling candles or crafts to local country stores or gift shops at wholesale
prices. In this situation, the shop owner buys the candles from you at 40-50%
off and they resell the merchandise.
(3) Craft bazaars- setting up a booth at a local function such at a flea market,
church sale, craft show and sitting there while customers purchase your
candles or crafts at retail.
(4) Home parties- In this situation, you would have sales consultants who are
actually independent contractors or you can do this yourself. They would go to
homes and present the candle or craft products to guests that the hostess has
invited over for the "Home party". They would take orders from the guests,
send the orders into the candle company or craft company, and the company
would fill the orders.
(5) Fundraisers- Offering to allow local non-profit organizations and schools to
sell your candles or crafts for a fundraiser. The organization would receive 35-
50% of the sale.
(6) Craft Malls- In this situation, you would be responsible for seeing that a
booth in the craft mall is filled at all times. The owner of the craft mall receives
an average of $25-$100 month to maintain your booth for you and to handle
sales. The craft mall owner also receives a small commission per sale...7%
average. You will in return receive a rundown each month of your total
merchandise that was sold; with an accompanying check for your sales minus
42109 State Route 18 Wellington, OH