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Selling your stuff in shops - what to charge?

(6 Posts)
hambo Tue 30-Aug-11 20:09:48

Hi there, can anyone help out? I make things and sell them on my web site (www.blockart.co.uk). I keep the prices low, but as I sell them online, I still get a high enough return to make it worth my while. I have just been stocked by a shop and I have worked out that I am getting a rubbish amount if you work it out per hour. I make personalised art so there is a bit of time involved...Is there a formula I should use when working out prices?
The main problem is, if I charge more to the shop s then they will be stuck with a much higher price than I sell on my web site.

hambo Tue 30-Aug-11 20:37:43

bump

Smallbrownbird Tue 30-Aug-11 21:22:15

Depends a bit if you're selling to them or if they are having your work on sale-or-return. The rule of thumb I've been taught is that if you sell your work to the shop then you would expect to charge 50% of the retail price. Bear in mind, though, that the shop will add 50% to the price they bought it off you, and then add 20% VAT - that will be the eventual retail price in the shop. If sale-or-return you would expect the shop to take 40% of the retail price and give you 60%, but if you're lucky you might get a deal nearer to 30/70%. This will probably mean that you'll have to up your prices on your website. It came as a bit of a shock to me that when I price my work, to be realistic, I have to take the price of the materials, then add my time including thinking or design time, then add 50%, then add VAT, and then see if anyone in their right mind is going to buy the thing at that price! Good luck, your work's lovely.

hambo Wed 31-Aug-11 20:34:31

Thank you!
You are right, when you add in design time and thinking and breaks (hmm) and VAT (never even thought of that) then the current prices are way too low...but that is why people buy them. I think I am scared to hike the prices up too much! Thanks for your reply. :0)

Smallbrownbird Wed 31-Aug-11 20:45:25

I think pricing your work is the hardest thing of all, much harder than making it! Your pricing doesn't have to be written in stone right from the start, you can try things out and change them back again if you feel they're not working. At the end of the day, it's what you're comfortable with that matters, not what people say you 'should' do.

hambo Wed 31-Aug-11 21:40:12

Thank you Small brownbird
I am on the case...
Cheers for your reply - am off to cogitate!

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