💰Consider both material costs and labor costs when pricing your products.
⏰Determine the value of your time and set a fair price for your labor.
📊Research industry standards and market trends to understand the value of your product.
💲Multiply your material costs and labor costs by four to determine the retail price.
💡Experiment with pricing and don't be afraid to adjust prices based on customer feedback and market conditions.
How do I calculate material costs?
—Determine the cost of the materials used in your products, including fabric, zippers, and appliques. Create an Excel document to track these costs.
How do I determine the value of my labor?
—Decide how much your time is worth monetarily. Consider factors such as the time it takes to make a product and how much you would pay someone else to do the labor.
Should I consider selling my products wholesale?
—Selling wholesale can increase your profit margins, but make sure your retail prices still allow for profitability. Consider the demand for your product in both wholesale and retail markets.
How do I account for platform fees?
—Take into account the fees associated with selling on your chosen e-commerce platform, such as listing fees and transaction fees. Add these costs to your pricing formula.
What if there are industry standards for pricing?
—Research the market value of similar products and understand what price points consumers are willing to pay. Use this information to set competitive prices.
00:00Pricing your products can be intimidating, but there are ways to do it effectively.
02:46Consider the cost of materials and the value of your time when determining pricing.
04:11Account for platform fees, such as listing fees and transaction fees.
06:19Research industry standards and market trends to understand the value of your product.
08:35Multiply your material costs and labor costs by four to determine the retail price.
10:23Experiment with pricing and adjust based on customer feedback and market conditions.
10:54Don't be afraid to raise prices if your product value justifies it.
