I just finished reading one of the best books I have ever read on pricing your products: How to Price Crafts by James Dillehay.
I ‘met’ James through his website, CraftsU, and was fortunate to interview him about his website (watch for the interview on Friday, June 6).
So, what was so good about James book: How to Price Crafts & Things You Make to Sell? The book addresses the complete story from creating your pieces, to developing a pricing strategy (whether you make one-of-a-kind items or not) to increasing your profits to explaining tax advantages.
James covers it all! I have read some many books and articles on pricing …. but few do as good of a job as James has in his book. Many well meaning crafters and authors leave out important items such as marketing costs and tax fees. Figuring out cost of good (actually costs of all the items you use in your products) and labor is pretty simplistic, but if we forget your overhead, marketing costs or taxes, you have missed the mark with your pricing.
To give you an idea of what is covered in the book, here is the table of contents which includes the following pricing issues:
- What we value
- How to raise prices without raising eyebrows
- The pricing formula
- Competitive pricing strategies
- pricing one-of-a-kind pieces
- Are you making a profits?
- How to slash material costs
- More profit from your time and workspace
- Tax advantages from your craft business
Coming from a bookkeeping background myself, I particularly appreciated his sections on recordkeeping and taxes — all important components to pricing your products.
If you are just starting out selling your handmade creations, or have been selling products for awhile, this guide will help fine tune your pricing and remind you of costs you may never have thought about before.
Stay tuned for the second part of this series of articles about James Dillehay unique website: CraftsU — a social network for handmade artists.