With a home based business it could be frustrating to figure out a way to pricing your own work. When selling your product, price is determined by what you put into making it such as material, supply cost, time and labor. This means keeping records of everything and how much time it took to make each product.
I find pricing according to your location is a good way to start. For example: The cost of living is higher in New York, therefore your work is priced with that of others in your field. Let us say you are a photographer and charge $375 for a photo package. Yet, your competition prices are at $500. The customer chooses you because your price was lower but are you getting what you put into your materials. With a home based business you don’t want to break even and not have enough money to recoup your inventory or your time.
Another way to determine price would be to follow a formula. An example of a formula was found in James Dillehay's book The Basic Guide to Pricing your Craftwork. This formula showed a basic way to determine a fair price for your customers that consisted of Figuring a percentage of your Fixed Costs +Cost of Materials + Your Labor = wholesale price x 2 = Retail Price. Fixed costs are your tools, equipment, rent, utilities, travel expenses, etc. Material is what you use to create your product and labor is wages you pay yourself.
In a regular nine to five job you are paid wages for a service you've completed and the same should hold true with your home based business. When using James Dillehay's formula you may not agree with the outcome of the price. Yet, it's one of the easiest ways to determine what your quality of work is worth. A rule of thumb to remember is that pricing is an art form which takes time and patience. The price must attract the customer and in the end give you a profit.
4/16/10
4/15/10
Oh Joy!!
When running your business you never know what paths the lord will lead you to. Today I'm up at the usual time, checking emails and I get a GREAT SURPRISE. I had applied to be the editor of the Norfolk Examiner about 3 days ago and never thought I would get in...Well I'm in!!! I have to send in my photo and bio to get started but will keep you posted.
4/13/10
Sales during Slow Times
Today I want to talk briefly on home boutiques. These are a great way to get your business noticed. The best places to find boutiques is on eventlister.com. Of course the membership fee's are higher but it's worth paying the price.
I've come across 4 that I've been a member of for three years now. One boutique does 3 shows a year. They take an average of 20% commission which is the lowest I've found. It's a great way to sell your work during the slow times.
If you would like a listing of the one's I'm familiar with, please don't hesitate to email me at tbacon09@gmail.com
I've come across 4 that I've been a member of for three years now. One boutique does 3 shows a year. They take an average of 20% commission which is the lowest I've found. It's a great way to sell your work during the slow times.
If you would like a listing of the one's I'm familiar with, please don't hesitate to email me at tbacon09@gmail.com
4/12/10
Early Mornings
My early mornings start at 5am. Nope, I don't set my clock for this crazy time but hubby is up getting ready for work. Although he is quiet has a mouse I can never go back to sleep after he leaves. So each morning I go through the routine of watching him get up, close the door has not to disturb me, turn on the hall light (which I still see through the cracked door) which wasn't closed all the way. lol
Before proceeding downstairs, he comes into the room, sprays on his morning cologne and kisses me good-bye. And you know what...I wouldn't trade it in for the world....you can tell we are still living like honey-mooners. Married now for almost 7 months. :-)
After getting fresh and needing some coffee bad, I head towards the computer. Check emails, blog alittle and then start in my craft room. Today I plan on re-vamping my inventory and adding something different. First let's get rid of the old inventory that hasn't sold in 2 years. I'm a firm believer that if you tried selling an item and changed it around a few times and it still doesn't sell, then it won't. You have two choices: give it away has a freebie on your web-site or dismantle and try something else. I'm in a revamping stage so I grabbed my sissors and started cutting. I kept the doll bodies but everything else had to go. It took me a while to clean out that (30 gal) tote but I did it! I had one scarecrow and a snowman hat left. Once my decapitaion was completed, I now have 2 large bags of cotton, a handful of rusty bells and some buttons. Next step is to create some new dolls but first I need some coffee. Gotta run to duncan donuts! Can't have coffee without the sugar. lol
Tip for today: Waste Not Want Not--You can always reuse cotton. :-)
Here is a peek. lol
Before proceeding downstairs, he comes into the room, sprays on his morning cologne and kisses me good-bye. And you know what...I wouldn't trade it in for the world....you can tell we are still living like honey-mooners. Married now for almost 7 months. :-)
After getting fresh and needing some coffee bad, I head towards the computer. Check emails, blog alittle and then start in my craft room. Today I plan on re-vamping my inventory and adding something different. First let's get rid of the old inventory that hasn't sold in 2 years. I'm a firm believer that if you tried selling an item and changed it around a few times and it still doesn't sell, then it won't. You have two choices: give it away has a freebie on your web-site or dismantle and try something else. I'm in a revamping stage so I grabbed my sissors and started cutting. I kept the doll bodies but everything else had to go. It took me a while to clean out that (30 gal) tote but I did it! I had one scarecrow and a snowman hat left. Once my decapitaion was completed, I now have 2 large bags of cotton, a handful of rusty bells and some buttons. Next step is to create some new dolls but first I need some coffee. Gotta run to duncan donuts! Can't have coffee without the sugar. lol
Tip for today: Waste Not Want Not--You can always reuse cotton. :-)
Here is a peek. lol
4/11/10
Let's Begin
Let me start by saying, I'm no craft guru. Yet, being in the craft business for over 20 years, I have obtained enough bumps and bruises where I want to share what I know with everyone. :-) lol
While obtaining these scares, I've learned a few tips, shortcuts and tricks that only a crafter or business owner would know. Yet most won't tell you their secrets but I'm not one of those people. I want to tell it all! And why would I want to do that?
In one short sentence......hey, why not!
I can recall when I first started that no one helped me with a thing. I was a scared mouse in a cage full of cats! If that isn't scary enough what is. lol
So I'm going to let you know it all, from beginning to end. By doing this I hope I helped you in some form or fashion. So....Let's Begin
While obtaining these scares, I've learned a few tips, shortcuts and tricks that only a crafter or business owner would know. Yet most won't tell you their secrets but I'm not one of those people. I want to tell it all! And why would I want to do that?
In one short sentence......hey, why not!
I can recall when I first started that no one helped me with a thing. I was a scared mouse in a cage full of cats! If that isn't scary enough what is. lol
So I'm going to let you know it all, from beginning to end. By doing this I hope I helped you in some form or fashion. So....Let's Begin
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