HOW much?

Ah, yes. This always seems to be a difficult issue to tackle. Why? Because most crafters undervalue their work. More specifically, the time and energy they put into their work. And then there is always the hobbyists vs. the artist debate (but I'll save that for another day).


There are a few formulas commonly used to figure out how much you should price an item. It looks a little like this: CoGS + overhead + labor + profit x 2 = Retail Price. There are other formulas too, and most are a variation of the one I just presented. For example, other industries may use a 2.3 multiplier rather than 2, etc.

CoGS is the cost of your materials. Simple.

Labor is the wage you pay yourself. Usually this is an hourly rate, but I suppose you could pay yourself a flat rate or by the piece. The important thing to note here is to be confident in your skills and workmanship and to pay yourself accordingly. All too often crafters and artists have the "my work isn't good enough to command $XX/hour" mentality. Humbug! YOU would gladly pay someone else $XX/hour to create a custom piece for you, so why should it be any different when you are the one doing the creating??

Profit is the money you make above your costs. This money is usually reinvested in the company for things like new equipment or new technology.

Overhead is one of those words many people use as a catch-all for every thing else that costs money in the business. Most overhead are expenses you incur on a monthly basis. Some of these items include: insurance, rent, office supplies, show fees, tools, software, display materials, packaging, travel expenses, promotional materials, etc.

A word of caution: when you first start making pieces, your labor time will be slightly higher because you may not be as efficient as you can be. This will change with time. Secondly, if you are not buying your supplies at true wholesale, rock-bottom prices, you will be priced out of the market by other sellers who do buy supplies for less. Shop around for low prices (but don't sacrifice quality). Some wholesalers will only sell to bona fide businesses. So, if you do not have a business license or a tax ID...get one!

Next: A little more on pricing.

A few words about QUALITY.

Quality, especially for a new crafter or artist, is one of those things many feel they can cut corners on. The mentality goes something like this: Silver-plated earring hooks look just as nice as sterling silver hooks, and I can purchase the silver-plate for less and pass the savings on to my customers. No! Don't do it! Even though your mental justification sounds right to you, today, at this moment...please reconsider.

Today and even tomorrow the silver-plated earrings will look nice. But as your customer handles the earrings and wears them the silver-plate wears through. Now what does the customer do? Maybe she just throws them away. Maybe she returns them to you and asks for a new pair. Maybe she tells her friends that she is disappointed in the earrings she bought from you. Maybe she decides never to purchase anything from you in the future. Maybe...??

Spending a few extra cents on solid sterling silver, gold or gold-filled earring hooks will certainly ensure your customers will not be disappointed in the performance of the earrings. In fact, using quality materials tells your customers that you have pride in your products and care about your reputation and the longevity of your product.

The next aspect of quality has to do with your workmanship and skills. Using gold earring hooks aren't enough if the wire ends are sharp, rough or otherwise poorly made. I highly recommend making a few pieces of jewelry for yourself and "road testing" them for a week or two. Is it comfortable? Sturdy? Does the necklace lay nicely across your chest? Do the earrings get tangled in your hair? Is the bracelet easy to clasp? Again, these are just a few things to consider when thinking about quality.

Use good materials and use excellent workmanship. Always!

Next: Pricing!

More defining STYLE

Being able to define your work will allow your to determine the best outlets for your work. In other words, if your work is a little kitschy and you use a lot of upcycled goods and ephemera in your pieces, an upscale art gallery probably isn't the first place your should approach in showcasing your work. Perhaps a hip and trendy gallery near a college is better suited for your type of work. This necessary step will also help you define your customer base. (And remember, your can't sell to someone if your don't know who that someone IS!)

This next step is, or can be, a long process. Developing your unique style. Just about every fashion design and known artist has a distinct style. No, you don't have to reinvent the wheel, but you do have to make it your own wheel. Take good 'ol Norman Rockwell for example. Just about everyone can recognize a Norman Rockwell painting. Why? His painting have a distinct style. Is the subject matter unique? No. Is applying paint to a canvas unique? No.

I say this can be a long process because in the beginning of your career, more than likely you will create pieces based on work that someone else has already created. Take bead jewelry for example. There are tons of bead magazines out there, and most of them all have "projects" for you to try to replicate at home. There is nothing wrong with this, but who's style is it? Certainly not yours. As you become more comfortable with your skills, a style will develop. I promise!

Next: Quality.