Pricing handmade has been a discussion among artisans for the longest time.
It's also what makes or breaks your business. Here's what I mean:
When your prices are too low…
You won't make enough money to stay in business.
You risk running a loss because you don't have enough money to pay for your marketing.
Not to mention the perception you allow your customers to have about your products and brand: cheap, poor quality, low value, bargain buy, unmemorable.
When your pricing is in the middle…
You won't make enough money to grow.
You'll forever be in that cycle of creating, selling, creating, selling, but never breaking out of it to create more and sell more because you don't have enough money for more.
Yes, you do need to have more money to make more of it.
When you price too high…
You risk alienating customers.
You might get a sale every now and then and make big bucks, but the thought of when you'll get your next sale scares you because your handmade items are not priced accessibly in your market.
Did I scare you enough yet?
Pricing is serious stuff, and deserves your attention if you want to build a sustainable business for the long haul.
Fortunately, there's an easy way to figure out all of this math (and it's not terribly hard either!)
Here's a formula many artisans use: