I’m also looking at the fact that they will be making a higher profit ($6) than I would be making selling to them. Wouldn’t it be better to lower your price to be closer to the higher end? My husband and I are starting our “retirement business’ a bit early. Therefore, I’m strongly considering trying to get some of my simpler designs into shops & realizing they cut pricing in half, it doesn’t seem to make sense to put my time extensive pieces at wholesale – at least not using my current pricing formula). This depends on your skill and experience, the uniqueness of your product and the details in the product. Learn how your comment data is processed. It is just me- one man company, who creates all of the clipart sets. that seems to take it to what other similar shops / items price theirs. Thank you for this thread! we need to create a craft culture that elevates it’s worth. I enjoyed reading your article. Thanks so much for your helpful formula. By clicking Sign Up, you agree to our Terms of Service. So what do you suggest when a store wants your items not at retail but on 20% – 30% consignment commission? Offering a shipping upgrade or a quicker processing time would be much better than under-pricing. This is a great pricing structure to follow. I would suggest finding a way to lower the cost of materials without sacrificing quality. I’m very new to online business. Hello! It does not mean similar in quality. However, you are now losing money on the gift with purchase item or the cost of upgrading shipping. After reading this, let’s say that if I purchase an item for $3, add my label (.10) then the cost of having the item shipped to me, let’s say .25 per item (depending on the quantity of items ordered) then it cost me a total of $3.35 wholesale. The more product variability you have, the more complex this process will be, which is why it’s usually smarter to use tools like our free wholesale price calculator to do the hard work for you. You have given much to think about and amazing inspiration. And as ridiculous as it may sounds, sometimes sales increase when the price is increased! Deciding how to price a product can mean the difference between success and failure for your small business. This formula works better assuming that the purchased materials for said project were bought at wholesale pricing, not retail. If we take the cost and add 2.00 an hour for labor (which barely seems like enough) that gives the price at 110.00. yarns. Do you want to get paid $20 per hour or $200 per hour? If I put my labor cost into the formula $10 per hr x 2 /50 = the cost is well out of what someone would pay. Also I am not trying to live off of my shop, it is just a side business to make a little bit of extra money. Interesting thought. But i am using eco friendly materials and manufacturing in the US, i believe that consumers will pay a price that not only gives them a quality item but the positive experience owning an item that has eco and ethical standards. Using your formula we should charge (lets take £10 a hour) £61 for wholesale and £122 for retail. What would you consider a reasonable amount per hour to be? Using this pricing strategy can help attract large numbers of customers who would otherwise shop elsewhere, and some of them will buy items with a higher profit margin. I was thinking instead of offering a typical wholesale price, that I give a percentage off, Let’s say 20% off the total order since it is a larger then normal order and inform them that I can only take 50% (wholesale pricing) if they buy at least 10 units of each item? Each product costs me $1.50 to make but I have to make it in batches of 6. PS: Artists, please do not give up. I might have missed this info posted somewhere, but what I am wondering is if my cost of supplies fluctuates ( based on the odd sale,etc) do I pass that deal on or just use the price that the supplies are normally sold for?