This is a great article! Long read but still wonderful!
Found the article here
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PRICING YOUR HANDMADE GOODS
One Article About The Business of Art
by Mary Boyd
You are making beautiful things and you want to sell them. You have a dream of making a living selling your finery, but you are at a loss as to how to go about pricing your handcrafted works of art. You need some vital information about “the business of art”.
But First, The Hard to Swallow Truth – The Unfair Competition Factor
I have been making and selling handmade goods for very many years now, and have made every effort to be a profitable business person as well as an artisan. I have a strong interest in this subject of business mixed with art, and have read all the books and pamphlets on the subject — of which there are many (there’s money to be had writing how-to books) and among all the books, there are some very good ones. Unfortunately, none of these books give one particularly important simple warning. So, before I start, I will give you the warning – about your competition.
On my path as an artisan, I have found that other artisans who have a genuine understanding of business are very few and very far between, and that “we” are competing for sales with other “crafters” who have no concept of business. For every artisan trying to make a living at fine crafts, there are at least three dozen competent artisans that do not price their products as though their lives depend on their income. For instance, I have found that there are many art teachers out there who have use of their classroom equipment and materials to make really wonderful art pieces and sell them for a mere pittance of pin money. And I have seen many spouses of doctors and lawyers doing beautiful work for a little second income. And of course, I have been among an uncountable lot of amazingly talented retirees who supplement a fixed income with their finery. None of these artists, none of them have a clue as to what their products are really worth and seem happy to just recoup their material costs and make a little bit of extra money.
So, I want you to know that you can choose to be one of the “crafters” who go along their merry way, inadvertently undercutting their competition and never making a livable wage, or you can educate yourself and become a genuine artisan with respect for your competition and for yourself. You can learn how to price your goods fairly and for profit, like any other business person.
You Are a Business Person – In Fact, You Are a Miniature Factory
Just like the Widget Maker and Sons, Ltd. in your local industrial park, you run a business. You buy raw materials that you use to produce products. You sell your products. You take up building space, you use utilities, phone, Internet. You drive a vehicle for your business. You advertise. If you truly are in business to be successful, you are aware of all your expenses, and you keep track of your expenses by doing bookkeeping.