The ugly subject of money has to enter into this metalwork bliss at some point I suppose. When you first start you have to learn enough to make sure what you make stays together and is worthy of selling. Took me a while to get there i can tell you.
Everyone tells you there is an equation for working out what your products ‘owe’ you. I’ve taken it from Etsy themselves so I know its right:
This works really well if you are very fast at what you make! Do I follow this way of pricing well er no! But i do try to get close. My wheel stoves would need to have been £100 at least when i first started and that is too much.
So what I did is looked at what it cost me in actuality. So the wheels cost me £5 a piece and the welding wire, gas and the sanding disks to finish it we will allow £10 per stove. Then there is paint which is £9 a can and you use a full can per stove. So before you know it we are at £29 then add an hour of my time even though when i started it took me way longer than that. £39 is what it costs me and i assumed people would pay a little more so i settled at £55 per stove. This gives me £10 for my time and £6 profit to keep the lights on. This keeps the price affordable and also i knew i was going to speed up over time and that would mean in the end id fall in line with my hour allowed for fabrication.
Why make something for £16 its a lot of bother for just that!!? I wanted to learn and it wasnt about the money but i did need to buy tools. My products really just pay the rent on my unit and buy the tools and materials i need. If i can do this now, while covering all my costs then that’s good for me. Remember this is a hobby not my income.
There are times also, like the spider’s web where i will make the item for cost. I wanted to make it and my friends wanted one for their door but didn’t have the time to make one themselves. I got to learn the process and all i have to give for that is a little time!
As i have said in most of these blogs i have a full-time job so this is what keeps me busy instead of getting into trouble!
It’s not about the money at the beginning it can’t be but you may be able to buy some tools to help you progress with what you earn. Even when you get a bit better and faster, you will only be able to charge what people will pay for things.
Have a look on the internet for what people are charging for things and take note of who actually sells their items and be guided by the prices they have. Etsy tells you what shops have sold and how many items so if you can find a similar product online to what you do then you have a guide as to what people will pay.
Once you have a fair price you are happy with, stick to it. Discounting may seem like a good way to raise sales but once you start that there is only one way to go and that is down. I’ll explain more about marketing tomorrow.
See how I price my products Here