how much to charge for craft type things

[overthemill]

after a casual chat in ashop which sells lovely little things (like nothing you need but stuff you'd like, like posh doormats, posh coat hooks etc) I seem to have come away with a commission to make some stuff for them as I was telling the owner about some stuff I've made for myself and friends!

This is great but now I need to a) make some stuff to take in and b) have an idea about how to price stuff. It'll be crafty type things, handmade, and handstitched.

Costs for fabrics etc minimal but how do I work out how to charge something so I get paid for my time? eg if i produce 4 handknit angora egg cosies (!) how do I price them: by time to knit, by cost of wool, by 'what i think someone might pay minus their mark up'??? help, any ideas?

i've made stuff like this but usually for the stall at school or charity stands at craft fairs - so have never charged before

but this is great boost for me, who knows maybe it could become a business!

and i mean, how much to charge the shop not retail price

A lot of people who sell their crafts tend to price by 2 x cost of materials plus time at an hourly rate.

That works fine for stuff I make like jewellery because I can make it quickly so the time cost doesn't make it unrealistically priced iyswim. Some other stuff I make I have to look at and say "What would someone pay for this?" and adjust my prices (but making sure I cover all costs and have a little extra).

You do need to be careful o cover all your costs as there are some you don't really notice when you're just doing it for a hobby - things like electric, water, etc if you use them to make your products.

thanks, the kinds of things i make are kind of recycled things - old tea towels made into cushions, tea cosies etc. maybe i should label them 'vintage' to get more money! I get odds and ends from charity shops, boot sales etc and then buy new things to top up. does this make a difference - i'm selling to a shop not myself directly. so i have no idea what their mark up is
thanks!!

I've always gone with 3 times the cost of materials for jewellery (this reflects the price of the materials and goes some way towards paying me for making them) but it might not work for knitted things, as the relative costs are lower (unless you're using Hand Maiden cashmere/silk or something! ) you'd probably do better to pay yourself an hourly wage.

Have a look at Etsy and Folky sites for products similar to yours and see what they go for. I know it's an online site so prices might be a little lower than in a shop (but that's what the shop are asking customers, not what they'll pay you!) but it'll give you an idea.

I sell my cards/gifts at a trade price to independent baby/card/gift shops (some very like the one you described ) and those sort of shops usually work on a x2.35 mark up from trade price to retail price (so they double their money and the .35 covers vat) so something selling for about £3.50, the shop would expect to buy at trade for c.£1.50

My products are hand finished but not handcrafted like yours are, so the shop may be willing to take a smaller profit margin to take that into account.

Also, have you thought about business insurance? As you're making the product you could need small business/public liability insurance- it doesn't have to be too expensive, but is worth thinking about when working out your costs.

thanks all, unfortunately i have been paralysed by fear this week - of being regected by the shop but will now get onto it so i can take some samples in at the end of next week! i reckon something that costs me, say, £3.50 in materials could fetch £10 - 15 in a shop so if i priced it at £7.50 they could price it at £15 couldn't they?

sounds good to me-good luck!