Check these signs that prices for your handmade goods are too low. Is it time you got a raise?
You have the wrong mindset. Sometimes artists get started selling with the idea, “I’ll just cover my expenses and maybe make a little bit for myself.” They may be in denial about the cost of doing business, and just make a wild guess. But selling handmade shouldn’t be a race to see who can be the cheapest. Are your products really well-made and wonderful? Then honor your hard work by charging what they are truly worth instead of what you hope will make them sell.
Your pricing formula isn’t working for you. Calculate your pricing by using the formula materials+overhead+labor+profit = wholesale price. If you aren’t covering your bases, you are either losing money or have no room to grow. Wholesale price is not determined by cutting your retail price in half; it is built from the ground up.
You can’t keep up with production. Usually, when your work is selling like hotcakes, it can take a price hike with no noticeable difference in sales. If you don’t want to increase prices too quickly, make a moderate change, and gauge your results. Then, increase again. This will help balance your time and your income.
You aren’t charging more for commissions and extras. Special projects, commissions and personalized items take more time, and you should be charging for this. Are you offering framing, gift wrapping or other services at cost without charging for materials? You should be. Each extra service adds value to your work. Charge accordingly.
Have you increased prices on your handmade goods? What was your experience?