Pricing craft items?

[myxpykalix]

I know it may vary from region to region in the country but one of my daughters wants me to make items for her to sell but i have no idea what certain items should be priced at or what would be the best things to make. So those of you who make stuff like this if you could advise me I would appreciate it.
For example I bought this dollar store box and carved the design. With finishing is it worth $10.00, more/less? Picture frames, plaques, what are the best items with the most profit margin?

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[jseiler]

This is where market research pays off. Venues vary quite a lot too. I did some market research a while back about some toys I was interested in selling. I talked with a friend who was connected to the craft fair circuit. In some craft fairs, you have to submit an application and they bin you by type of product and if you had presented there in the past. These craft fairs command higher prices because they limit your competition. At flea markets, you get to compete with walmart.

[jhicks]

Jack, pricing your work is a funny thing and in the end a personal decision based on how you value your time vs how you and the customer value the product. Example, at $60.00/ hour or $1.00/minute, how long did it take to purchase, design, fabricate,and finish this? Then how much will literature, overhead, and selling costs add up to?
Well the numbers certainly change when you buy 500 at once, design it once,cut in volume, and finish 50 in a group but in the end the base starts with time and material. Then add equipment cost, overhead, cutting bits, packaging and sales cost/expenses.
Now if you add that all up and ask yourself, how many would I need to make to justify my time (paying yourself for time is not profit, its labor expense) and expenses plus make a PROFIT on top of costs, you'll have a pretty good idea if this is a pursuit worth following.
If it takes $14.00/ minutes per box (unlikely unless its repetitive volume) and you think you can sell them for $15.00, then you recover $1,400.00/ hundred sold for your labor but no profit per se.
A 50% mark up would generate a sell price of $15.00 cost, plus $7.50 profit = sell price of $22.50/ ea.
Just think about how much you would be charged for monogramed towels or shirts to have your initials embroidered on them. Custom always is a premium. Leave the name off and maybe someone will buy 50 at once. Nothing wrong with testing the market to learn more and maybe a client will say, not interested in that BUT can you do this?

If this makes sense, go for it, otherwise look for products that have a higher sell prices based on the "percieved value" and uniqueness that command a higher unit price or generate higher volumes.
Of course it's sometimes better to make $100.00 rather than you and your capacity investment sitting idle making $0.00
That's the personal decision on how to spend and value your time to advance your goals and skills.

Have fun and keep thinking until, testing, and sampling and you'll eventually find the product, niche, or customer base you are looking for that satisfies your thirst.

[myxpykalix]

Jerry,
Some good advice there, even some discouraging info, if you start adding up all the design time, ect.

In the end, i'm not looking to do this as a profit business for me but just make a bunch of stuff for the daughter to sell and profit on.
My time and effort isn't important in the equation.
I was more interested in what is the "hot item" most are selling. My example of the "keepsake box" I buy for a dollar takes 10 minutes to cut, maybe another 5 or ten to finish and if i sell it for $10.00 thats a 9.00 (gross profit).
So what are the hot items, plaques, pictre frames, ect?

[jhicks]

Guess it depends on location, audience, price points and seasonality.
There have been many nice pieces posted like cribbage boards, 3D cabin style plaques, cute sayings, birdhouses, and timeless phrases/quotes,cutting boards, etc.
Suggest you go see what's at your markets, ask your daughter or wife what they would spend on and how much, then try a sampling of 2 to 10 ideas and see what works.

Good luck and post your findings. I'd be interested in hearing how it goes.

[drodda]

Jack,

I had a long post typed to reply to this question, however while reading the post I decided that it is not my place to give someone a reality check.

So instead I will say that there are products out there that are worth building and selling. I am not sure that the expense of this one is small enough to profit off this. We tend to greatly exagerate our time that it actually takes to cut, sand, finish a product. Everyone is looking for that one product that loads itself on the bot, cuts with a perfect flawless finish, requiring no sanding or dry time and goes out the door by the truckloads.

We all do this as we are trying to convince ourselves that the numbers look profitable. Reality is if it was that easy to make a profit we would all be rolling in the dough as most that have taken the plunge to spend a large amount of cash on a shopbot are a creative bunch of people.

I am not trying to be a dream killer here, there are products and ideas yet to be discovered that will make this dream come true, we just have to learn not to spend too much time on any one item until it looks like the real deal.

I applaud you Jack for trying. this post was not meant to be negative.

I have one of these type of ideas at least once a day. My wife usually brings me back down to earth once I have filled her in on "The Next Big Thing" so I go back out to the shop and start dreaming of the next idea.

-D

[myxpykalix]

Dear Dave (Chicken Little) Rodda,

Yes I know "The sky is falling"...lol (just kiding!) and under normal circumstances selling items is more of a hit or miss based on many different things like location (a moose plaque might be more popular in hunting country than new york city).
Now on top of all that you throw in the current economic "mood" of consumers and it is a crapshoot. I was looking more for a consensus of what the hot items were and pricing but that also i find is relative to where you live also.

You might look at this as a "loss leader", i'm not concerned about turning a profit for me but letting the daughter make some money and if like Jerry says maybe someone will come along for other more lucritive business. Thanks Dave, I appreciate your advice.

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