A large number of people possess the talents and abilities that enable them to produce many handmade hand-made products,
to the extent that some of them may match the quality and beauty of
similar products manufactured in factories and workshops depending on
the equipment and modern technological methods. Unfortunately, however,
Many beginner mistakes when working on pricing their products which
makes them unable to sell and reap a lot of profits that encourage them
to continue production and work. Here are a few lines to show you the most important mistakes people make when pricing their handcrafts , and I'll show you how to do the pricing with an illustration for greater clarity. He continued with me.
How to correctly price handmade products
Manual Product Pricing Mistakes:
The most common and obvious mistake is pricing less than competitors,
meaning that the person making the product is looking for the prices of
this product in the market to make the product at a much lower price,
expecting that buyers will accept the purchase because the price is
cheaper than the prices of other competitors who provide the same
product . This is a big mistake because most buyers will think that the product is cheaper for the lower quality.
The second mistake that people have when pricing their products is to
consider themselves as the target customers. Unfortunately, they are
pricing their products based on their purchasing power, and often they
put prices lower than what they are supposed to sell, causing the same
problem that we talked about in the previous point Customers will
consider that the product is poor in terms of quality.
So you should not fall into this mistake and consider yourself a target
customer for your product and pricing according to your purchasing
power, so that you can not afford to buy there are many others can buy.
You are talented and deserve to win money:
Handmade products mean attention to detail, meaning quality and
accuracy, meaning excellence and talent, means a lot of learning and
skill.
All of these things must be materialized so that the return is feasible
and ensures the manufacturer to continue production and work, it is not
good for the manufacturer to calculate the costs and adds a small
amount of margin profit and put the price. But must put a lot of other things "unknown" for most people within the costs and in the end can determine the price produced. I will explain all that is necessary to reach the appropriate price at the next point.
How to price handmade products:
In order to reach the appropriate price for the product, it is
necessary to calculate all the costs in addition to the costs of labor
(the manufacturer's estimate of the time spent in the product industry
and the quality provided by the skill and highlighted it) and in fact
the point of appreciation of this work is the same manufacturer, 5
countries and there will be estimated by 10 dollars and there will be
estimated at $ 100 and others will appreciate more than that or less.
Here I would like to recommend not to over-estimate the work especially
for people who provide products available and have many manufacturers.
For people who offer unique products such as complex accessories or
innovative costumes or paintings that reflect the experience and
imagination and wide, it is good or They value their work hours in good
amounts because they deserve it.
A Realistic Story of Talent Talent Rating:
The famous Spanish artist Picasso was walking in one of the markets.
One of the ladies called him and asked Mena to draw a drawing for her,
so she took her and thanked him and then left.
I was amazed at the lady and said, It took 30 seconds to draw this
painting. I told you it was true but it took me 30 years to be able to
draw this painting in 30 seconds.
Go back to our theme, and hit an example of how to price handmade products,
Let's say you're going to make T-shirts that are worn by athletes and bodybuilders.
1- Raw materials:
- One yard of fabric used in manufacture at a cost of $ 8.
- 2 yards of tape that enters the detailing process at a cost of $ 4.
- One yard of rubber elastomer at $ 1.
The total cost of raw materials for the Tank Top T-shirt is $ 13.
2. Employment:
We will assume that you are a skilled person in the field of sewing and
you have the ability to produce Tank Top wonderful in terms of quality
and appearance, so you will get a reasonable price for every hour you
do, and suppose that the price of the hour is $ 10, and is expected to
take an industry that spread two hours of work, Labor costs are $ 20.
3 - Other expenses:
There are other expenses that many individuals do not have to price for the handmade products
they make. Examples of these costs are our example (the consumption of
the sewing machine, the energy consumed, the cost of filming the product
for the use of those images in promotions). We will assume it is $ 10 is the other.
The total projected costs for the manufacturing industry are $ 43.
Tank Top Price:
We add the desired profit margin and will assume that $ 10 to costs,
which amounted to $ 43 and this means that the selling price of the
product is supposed to be $ 53.
Important Note: Many manufacturers believe that if they put themselves a
good profit margin and a good price for the hours they work, the prices
of their products will be high and will not be able to sell them. This
is a common mistake. Many manufacturers who make manual products add to
themselves excellent profit margins and put themselves Good amounts of
hours spent in manufacturing their products but in return provide
customers with wonderful products and truly distinct.
A quick summary of the article:
- Pricing of handmade products
at prices lower than those of competitors is a big mistake and
customers will think that the product is defective or bad quality.
- Never consider yourself a target customer and price your products from this standpoint.
- Set a good profit margin for your products. You deserve a good profit to continue working and producing.
- If you are talented and have the ability to offer premium products
reward yourself with a good wage for each hour (plus production costs).
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