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I follow this formula:
(time x hourly rate) + materials = price
I don't stray from it even if it seems that my final price is too high.
Things tend to take more time than average for me because I'm super picky about quality and details.
Once people know what sort of work you do, your reputation will carry you far.
So, if I make something that seems to be priced too high, I give it a chance. I might not make a ton of that item just in case I end up stuck with them lol.
Usually, I find my perception is off as far as what I think the item is worth. After all, *I* wouldn't pay that since I can just make it myself LOL! That tends to warp my perspective.
But, bottom line, if I price something cheaper than it works out to be with the formula, and it becomes a popular item, I've got a problem.
BTDT. It sucks.
The error in that sort of thinking becomes apparent when you've got 20 orders for an item where you're making $2/hr. Say each item takes 2 hours to make. Is it worth taking 40 hours away from your family/home time for $80? How peeved would you be if your dh spent a 40 hr week at work for $80?
You could make 3 times that at McDonalds. Just sayin'.
By the same token, I follow the formula even in situations where there's the opposite problem: my price seems lower than the going rate for that item.
Last edited by Dannielle : 09-05-2007 at 05:20 PM.
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