How-To: Setting the Price

After struggling with price setting for my scarf (see this post), I decided to do some research. It turns out, unsurprisingly, that pricing craft and art items proves to be difficult for many people out there. We worry that the price is too high while it is often too low. We disappoint ourselves by not charging the price, we feel is appropriate. And very often, we simply have no idea how to reach a reasonable price.

Below are some tips and useful tools collected from all over the craft sphere. I know they helped me and I hope they will help you too.

1. Arriving at reasonable price

Now, this may seem like a taunting exercise, but it is in fact a simple mathematical equation.

Item cost = cost of supplies + (hours x your hourly wage) + selling fees

cost of supplies – this is self explanatory, but you have to remember to consider all materials you used to create this piece.

hours – this not only includes the time you spent working on a piece, but also procuring supplies, taking and editing photos and posting items on the Internet.

hourly wage – this vary depending on your country of origin and how much you would like to earn. I think it is not a bad idea to start with 1,5 x minimum hourly wage of your country and then adjust according to the price your competitors use.

selling fees – this are costs of etsy or artfire postings + postage supplies

Item value/price = item cost + profit margin

profit margin – how much you would like to earn on this piece. How valuable you think it is. Some people suggest you should triple the item cost or charge as much as the market will bear (i.e. as much as people are willing to pay) but I think it is a much better practice to add the value you think is appropriate. I find it better to charge the lowest price I can bear. But don't undersell yourself. Charge what you think your creativity and skill is worth.

2. Reality check

To make sure that your price isn't completely unreasonable, compare it with your competitors' prices. To identify your competitors, check other crafters in your category. And remember, mainstream manufacturers are not your competition. You create one-of-a-kind pieces of art and they make uniform items. Their price will often be lower but it should not concern you, because you create in a different category.

3. Too high, too low

Now that you checked competition, consider revising your price. While doing so, remember that too high prices may discourage your shoppers (especially, if you cater to students and young people) but too low prices will almost certainly cause suspicion. Customers will often overlook low priced items assuming that the quality is also low.

It is a good idea to have a wide range of prices so that each of your prospective customers can choose something affordable. At the same time you will give them a chance to try your products out, before they are ready to spend the big bucks.

4. Useful resources

For more information on pricing check out this few exercises from Etsy. Use rolbe etsy calculator to calculate the price, using the cost indicators. And check out this website for postage costs.

And btw., the great photo on top of the page was taken by DCvision2006

How-To Tuesdays: Going in Crochet Circles pt. 1

One of the fundamental skills a crocheter should acquire is crocheting circles. This form provides basis for many crochet projects, is effective and, in fact, very simple to create.

Today I will show you the simplest method of starting crochet circle.

1. Crochet 6ch (in case you are using bulkier yarn, less ch may be in order)







2. Join the the last and the first chain loop by slip stitch. This is your foundation circle







3. Put the hook through the whole in the middle of your foundation circle. Pull yarn through so that you have two loops on your hook. Yarn over and pull it through the two loops. Repeat all around the foundation circle. You can make the stitches tighter or less tight depending on how many stitches you need.




4. When you have stitches all around the foundation circle, join loops with slip stitch and start next round. From the second round pull hook through back of first round stitches. You can use single, half-double or double stitches.

DO NOT forget to increase the number of stitches to keep your circle flat.

How-To Tuesdays: Getting the Most Out of Your Twitter Account

Once you follow more than 200 people it becomes difficult to really use Twitter for what it is - minibloging platform. The constant stream of tweets can become overwhelming, making many users discouraged with the tool. Below are my ideas of how to not only manage Twitter information flow but also get most advantage from your account.

1. Take time reading at least some of the tweets on your time line - after all this is what Twitter is all about. I am constantly amazed at what wonderful things I find by following tweets. Obviously it is impossible to read all the tweets, unless you want to do only this all day long. I find it is a good practice to take set aside a given amount of time every day to read a sample of tweets. Treat it like the daily newspaper. This solution has the added benefit of making you more careful about who you want to follow. You can't read all the tweets - so make sure that you only see the ones that count!

2. Read all tweets of a few chosen people. Among those that I follow, there are several fantastic bloggers. Each and every of their tweets carry great value and I don't want to miss them. I keep a their twitter pages bookmarked and at least once a week read all of thier tweets. It is always worth my time.

3. Take time to check who follows you. Every day I check the list of my new followers. I do not blindly follow back. I open every account, read their bio and follow the webpage link they provide. This not only allows me to weed out the spammers and "instant_money_makers", but I get the chance to discover interesting websites and find great craft shops. I only follow people who have the potential to add value to my stream of tweets.

My first crochet tutorial

Someone asked me today to help them with crocheting triangles. And this was exactly the push I needed. I was thinking about writing some tutorials up and when I started to write the directions for a crocheted triangle, I thought to myself: Hang on, you might as well do it right!

So here it is, my first tutorial. By all means do have a look and let me know if anything needs improvement.