What is it and why do you need it?
I recently attended a craft show for Etsy shop owners. There were some beautiful items made by super talented men and women. My budget for the day was far short of what it need to be to purchase all the items I wanted.
As I shopped and admired the craftmanship, I often wondered if the shop owners were actually making any money. You know, was there a profit at the end the of day or were these people working hard just to cover their expenses?
You don't often here hand-made shop owners talking about profit - it's almost like the P-word is a dirty word. If the goal of a hand-made business isn't to make a profit, to make some money, you don't have a business, you have a hobby (and you still have to report all the income to the IRS).
When I mentioned this to the friends shopping with me, they remarked that people may not understand
- how to calculate the prices
- what to include in the price
- the difference between retail and wholesale
Pricing your hand-made items to make a profit isn't rocket science, but you do have to have a basic understanding of the pricing components. My Plan, Prep & Profit guide has an in-depth section on pricing. The following is an excerpt from that section:
To learn more, pick up your copy of Plan, Prep, and Profit here. It's available for a limited time.