the lost art of pricing
by kim on 11 July 2011
Back in the day we were given an assignment on production work. We were set loose with the project of designing and fabricating work that could be made quickly, further reproduced into matching sets and sold cheaply. Most of us were working with silver, not a cheap material, and this was the first time we were making these pieces so our fabrication time was, well, timely. With a mere two years under our belts there were many things to master and everything we made took time. We weren’t really given much to go with but new techniques to learn to make reproduction “faster”. Looking back I think it would have been beneficial to look deep into the consumer culture and take examples from artists who were succeeding at making a living in this realm of work. (Please note, I said artists, not big box stores. An example is shown below.)
The only thing I took away from this project was the pricing equation. We were told that most artists make three times materials plus their hourly wage (this hourly wage was left undefined). Now that I am doing this full time I realize that when one breaks down the materials we often leave out many key items for instance, packaging, shipping materials, advertising materials, electricity, rent and other overhead are often not part of this equation. And when calculating our hourly wage we often leave out the time we spend packaging, shipping, selling and promoting our work. If you are like me and try to tally your time up and when it comes to paying yourself you think ‘well, I could work faster’ and you calculate how long it would take you to make the piece after ten shots of espresso. All this just to make your piece a cost comparison to something from Target.
But we do this because we love it right?
But would we work this hard punching a time card for someone else?
All of these thoughts surfaced upon reading this post by up up creative. Why is it that artists and crafters need to fit into this market of being more affordable than chain stores? It’s true, we may not have the same overhead but we don’t have as many hands helping and we certainly don’t have the machines to make things for us. I would like to remind you that there are stores out there that have a name for themselves and no one would squawk at the prices set my them. You can either afford their product or you can’t. Customers don’t try and negotiate by asking “how much for the earrings and the necklace to match” at the register. There are certain stores that have folks clipping coupons and scanning discount cards but these aren’t the stores we should be competing with. We should be just as valued if not more so than the high end stores. Stores where quality is supposed to matter. Isn’t that what you are looking for after all when you buy handmade? If not, quality should be on your list. In fact, let’s have it replace barter.
To put this in perspective, we are working for likely less than when we were punching a clock and without benefits. No paid vacation or sick time and no aid with health insurance and certainly no overtime. But we do this because we love what we do, we need to do what we do. Because of this passion we don’t need to do without. We need to educate our consumers, we need to not settle for a deal to make a sale.
I find it ironic that in a time when Fair Trade is hugely popular I am constantly being asked why my prices are so high. I would venture to guess that most shoppers who attend farmer’s markets or craft fairs proudly purchase Fair Trade items when they can. I bet they also don’t like to purchase items made in sweat shops. And I can surely bet they are against child labor. But these same folks can walk into my tent and ask why my jewelry isn’t cheaper because handmade is suppose to be cheaper. I guess I can starve but the harvester of their coffee beans needs a better living. (This is not at all to say I am not for Fair Trade, I am. It is just to give a comparison. Getting people to support Fair Trade took time and education, just like the handmade movement needs to do for their customers.)
 |
| my craft fair setup |
And who is to blame for this? I say it’s the hobbyist. The person who sits at home in no need of another job and makes things in their spare time. The person who doesn’t have any need to be compensated for their time, just their materials. The person who offers discounts on their handmade items. They may be making stuff because they love what they are doing but they don’t need to make stuff. They don’t have training other than craft circles or a few classes. They show up on online marketplaces making the same thing as you and I and cut the price down to nearly giving the item away just to make a sale. Adding salt to the wound they give us another place to look at to see how our prices compare. I hope to educate the consumer to go right past these shops, providing no fuel for the fire. In my world when a customer asks a price on a craft and the maker says “well the sale is almost over so instead of $40 I can do $20” the customer walks out of their tent in search for a real crafter.
what are your thoughts on the art of pricing? have we lost our focus and are just trying to make a sale?
I make shiny objects with dashes of color. I love nature and the city I live in. I take photos that inspire me. I buy handmade.
{ 16 comments… read them below or add one }
Very interesting article, I have been making stained glass art for 26 years.I like to think my work is unique and made to the highest standard possible.To achieve these two things takes time , which is my biggest cost even though I use the best materials I can source.I wouldn’t even consider trying to make it quicker, which is about the only way I have of making it cheaper.Cheap is mass produced you cannot compete with that, I think as a maker/artist/craftsperson your role is to provide the top end products, to outshine the mediocre, to deliver the absolute ultimate to the marketplace.
I LOVE this article! Everything you say is SOOO true! I’m a member of a local Etsy team and we were discussing pricing a few months back. I made a list of all the costs that should be included when considering pricing and I was AMAZED! When you consider EVERYTHING involved, it makes you realize why we should NOT underestimate the hard work and talent it takes to create our works of art! Don’t underestimate your worth!!!
Excellent article! So true. Thanks.
Beth, I hear it all of the time and customers walk away to buy something cheaper. I have come to realize that stores are where I do my best business. Folks walk in there expecting to spend.
I so agree with your article! I think education is key,and we are the educators,the artists who teach as we sell. I love to have customers in front of me in person,I think answering their questions about how long a piece takes to create is important. They can better respect our art.
I left the main stream selling venues because it was confusing for the customers and not beneficial for me. I have started my own website, and I spend time in my description giving an overview of why the piece was created and how I did it, my way of educating and captivating my audience.
Thanks for sharing this!
I could really identify with this article! Pricing is the bane of my existence! And it really requires strength and perseverance to keep our prices where they belong and not go into “well, I just want to SELL them” mode! Education is truly the key. And selling to the correct buyer. It is so frustrating to sit at a show and watch lawn ornaments sell like hotcakes, while all you get are compliments on how beautiful and unique your work is!
thanks for all of the amazing feedback and support on this issue. there will be more to come, I love the discussion.
Amen!
Jbebert on Etsy
This article was very eloquently put.
I struggle with this question all the time…I am a one artist operation and until now (before the crisis hit Greece) I did not calculate the extra drains (packaging, shipping materials, advertising materials, electricity) on my time and money. Now that I have to, I find that I was underpricing my work on the whole…no more. What you say about the client that can afford an item at a certain price and the one that cannot is so very true. As a person I hate bargaining: I have never asked any of the artists whose work I collect to give me a better price (if they offer on their own when they find out I am a jeweler too, it is another thing)…It is a matter of finding your niche in the market…as Lorena says, correct pricing stems from the respect you have for your art..
Sophia
So glad you posted this article. It is a constant battle when I do shows as well. We hope that the consumers can tell the quality difference, the customer service (non-existent if they are imported Fair Trade goods), and the innovative designs (which is lacking in the mass produced goods that require less skills).
completely agree with you! I also often have people ask me why my product is so expensive when its so small in size…even compared to some of the other mass produced handmade/cast jewellery..smtimes i just tire of standing my one-of-a-kind ground…bt have to keep at it! thankyou for your post : )
cheers!
Pallavi
I could not agree more. I have to weigh in on a regular basis with my best-friend and her mom in how they price their work. Her mom practically gives away much of what she makes, drives me and my friend nuts. We’ve upped the prices and successfully sold at higher prices.
I’m sorry for all my hobbyist fellas, but as one of them I can tell – it is hard to come to real price even for us.
I love stuff what I do and because I don’t have to work fast. I can spend time to try different variants of design or technic. But I don’t want to throw away result of my work. I want customer who will appreciate my work and effort. That is why I’m looking for items of same quality and try to price my work accordingly. Forgive guys who are dumping in price, as they despair to make a sell. They can’t compete with you in long run. They are not stealing your customer. They are like a weak gazelle in the herd – easy prey for lazy predator
I have had a studio for 18 years. It was located in a commercial area and considered a job. I have people come to me from time to time and ask me to teach them how to do what I do because they want to do it. Thanks for shedding some light on the life of a maker.
Lorena,
I felt the same and thought I should share this so others like me wouldn’t be alone. We will find our audience. And we will educate them! Happy Selling, Kim
Thanks for writing about this !
I totally agree with you and always fight about pricing our work correctly.
I have been in a lot of great craft and art shows and I can see some good artists having their work lower priced than me. At the beginning I felt I was to expensive but then I though , NO I am not. I am pricing my work with respect of what I do and I will find my client sooner or later.
~ Lorena