Finished Friday- Day 5

31 days to crafts show

Happy Friday!

Here’s an update on my progress so far for my inventory.

One completed pig! This is my first (well the first one I have the guts to show of a stuffie that I created. I think Pinkie T Pig came out all right.

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I finished off the hair clips.

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I loved this pattern, Sara had posted it on her 31 Days to a Craft show and it was exactly what I was looking for.

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On Molly’s day 5, she offered a tip. Well I don’t have a tip about doing the craft but I do have a tip about pricing. I am by no means an expert. I undersell myself a lot. But it’s a learning process. So here’s what I’ve learned.

The only way a business, any business can survive is to make money: a profit. And the only way I can make a profit is if what I sell an item for is greater than what it cost for me to make it.

Let’s take my hair clips for example. Those are my Unit. I used the following supplies to make the clips: floss ($0.70), clip ($0.16) and glue (maybe for the dab of hot glue- $0.02). To find out how much it cost to make the clip I’d add the cost of the supplies.

0.70+ 0.16 + 0.02= $0.88

So, to make both clips, it cost me 88 cents. But there was more to making those clips: my time. Labor costs need to be factored in and this is where I always have a problem. Insert issues of self-worth 🙂 How much is my time/labor worth? How much would I like to be paid for crocheting? I’m going to say $3.00 an hour. No, I’m not trying to run a sweat shop but I also don’t want to out price myself so my business doesn’t make a profit.

So we have $0.88 + $1.50 (it only took me 30 minutes to make both.) The total cost of one unit is $2.38. I would have to sell these clips for more than $2.38 in order to make a profit.

There are other things to factor in, like overhead and the cost of running a business, like: the cost of the booth rental, the space I use in my house, business cards, packaging supplies! But for now, I’m not going to factor those things in. At least I know what it costs to make my hair clips.

I hope this was sort of helpful. How do you factor your price points?

M

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