I guess this is a question about pricing, not of a particular piece, but of work in general. I'm determined to make some kind of living off my work, but it's difficult when those who do not partake in the goodness that is handmade have no inkling of the labor that goes into producing high-quality items. (I get really offended when I hear people comment on how "expensive" something is when they clearly have no idea what kind of effort went into the work. It's not like we should be competing with Target and Wal-mart, after all) It seems like this lack of understanding makes a lot of crafters fearful of charging a fair price. Plus, there's a real chance that higher prices means not selling work, which means not eating.

I don't mean to stir up trouble or offend anyone (and hopefully I'm doing neither of the two!), but I'd like to know how you deal with this issue, and how it's reflected in your pricing.

No offence here! Certainly not.

But then, it's probably that I see exactly what you mean. I had a customer recently who must have been trying to get a discount (when I was already giving her one, over a custom order that was part of a multiple purchase...).

I was this close to telling her to go do her shopping at the neighbourhood supermarket and buy mass-produced Chinese stuff...

I tend to calculate the price according to supplies and time spent (and I don't charge lawyer or doctor time!).
In the case of that sale, ther was also the fact that I had been some time firguring out the pattern, so I felt the originality of it deserved a fair price too.

To be quite honest, I sell very little and I am not professional yet, but I also feel if I make my prices as rock bottom as I could, it's just not fair on those who do have professional status, with all the expenses, and therefore the higher prices, that their status entails...

I agree with both comments above. Finding the balance is extremely difficult and tricky. You do not want to sell yourself short but at the same time you do not want to price yourself out of the market. How I've tackled the issue is to create more 'value'. Each bag comes wrapped in a unique and special way. See: http://thewrendesign.com/2008/03/26/wren-wrapping/
I have also added extra's to the bag such a a scented lavender pouch to the Big Town Bag. I have tried to justify the hand-made price tag. I like to think that these little extra's make my customers feel they are getting more than just a product. They get a story, an experience and a superbly made bag that has a heart.

Tricky topic this.
You need also to consider what market segment you are aiming at.
ie are you looking to sell to the sort of people who buy Chanel or the sort of people who buy WalMart. (extreme examples I know, but hopefully you get my drift)
Chanel-types won't buy items that are too cheap - because they want to buy quality - and WalMart types like a bargain. And there are a whole load of other types in between.
I have been hassled at craft fairs by the bargain-types who want to get something cheap - and I have had to let them walk away - because I knew that I could sell the item later to someone who appreciated the quality. (It was hard to say no to a sale though! :-)
Once you decide the segment you are after - and the prices you can set - you then need to market accordingly to reach the potential buyers.
Hope this helps.
Tee

This is a good topic. Especially for those of us who have trouble, always, at the moment of pricing an item. I usually calculate supplies+time spent. A friend of mine who is a ceramist, told me once that she solved that problem by calculating (honestly) how much she would like- or thinks should- get paid a year, and then dividing by hours..,sort of like with a "normal" job. She makes a living as a ceramist.
But again, the problem, as it was noted is that too cheap so people buy might actually give the idea that it is not good quality. Too expensive, people wont even look. The problem is, as StudioFour25 says, that what's cheap or expensive also is matter of subjective opinions.
I haven' t solved this yet. What Wendren suggests is a good idea. And great wrapping idea! I already do soemthig like that... handmade wrapping bags... but then, Im adding more handmade to the equation.

Either way, i think people who dont appreacite the extra value of handmade, should directly look away, or be told to look somewhere else.

I underpriced my work for years. I just didn't have enough self-confidence and I didn't believe that my items are worth more than I asked.

Now my hats cost about 2 times more than last year and I feel much better. Yes, some people complain about the price, but not as much as I expected.
If someone says that my hats are too expensive and wouldn't buy, then I'm not sad about it, because I don't want people to wear my things if they can't appreciate the time I have put into my work for making the clients happy.

Good topic and as everyone has said a tricky one to get right. The way I see it is that I have to pay for the supplies to make my papercrafts and then add an amount on top for the time it takes to design and make each item.

If some people would rather buy a mass produced card for £1 then that's up to them, it won't make me change my pricing, I feel that I charge fairly considering my costs and time involved. Some people will appreciate this, others will never understand and then there are people that once you draw attention to the detail and quality of handmade crafts, will start to think more when they go out to buy something new.

That's why I feel it's important to support each other and bring attention to Dawanda off line as well as online. Together we have a louder voice than we do alone and hopefully this will bring us more attention, and people will understand quality has to be paid for!

The first couple of items I sold we're actually sold for prices the customer came up with. I just asked them what they'd be willing to pay and if it sounded reasonable to me I'd say yes. The prices I have right now are pretty much based on that, I just try to estimate the price of the supplies and add a certain amount for the time I spent on it, the last one is the part based on those first few items :)

So far I haven't been told I'm too expensive or too cheap, so I guess it worked

I think the bottom line is that infortunately you have to achieve some kind of compromise when it comes to pricing. When you consider the time and effort that's gone into a handmade product, we really should be pricing a lot higher than we do, but in that case they would be far too expensive for most people. I tend to make cheaper and easier to make products that I sell really cheap at local shops, and more expensive and elaborate items to sell online or for choosier customers who are willing to pay a bit more.

This forum inspired me to write a post in my blog called: "What is the VALUE of hand-made"

http://thewrendesign.com/2008/06/30/what-is-the-value-of-handmade/

Great topic. All the replies above are also great.
It's such a hard thing to figure out and each person is individual with the way they work out the prices of their tiems and justify that price.
Unfortunately most people seem t underprice their work. I am guessing this is because of a fear of missing out on sales. But you have to remember, you shouldn't be competeing with mass produced items. You are not a factory that can buy things in mass bulk, you are not under-paying staff to make your products. You are doing all the work yourself.
If someone wants to pay a "K-Mart" price for something... then they should probably go to "K-Mart". If they want something special, unique, individual, quality, made by talented hands, then they should be looking in places like DaWanda, and be willing to pay the price that is suitable for such an item. If they're not, then it's up to them, and that's okay :-)

If you are worried that to be fair to yourself you have to charge a price that is higher than you think people will be willing to pay, then try reducing your "over-heads" so to speak. For example, if you sew, try and buy your fabric in bulk if possible, as this can reduce the overall price. If you make jewellery, can you ave money by buying your beads, componenets in bulk? If yu can aford to buy in bulk by yourself, maybe get a group of like minded creative friends together and buy in bulk together to save money overall.
Or try and figure out more efficient ways of working or producing whatever it is you make? This will reduce the labour costs that you need to incorporate into your retail price. Can you cut out multiple patterns at the same time by figuring out a way to fold your fabric, etc? Can you be a bit more organised so you can set yourself up with a mini, one person production line?

And one of the great things about selling online is that you get to write about your product in the description. This gives you a great opporunity to tell the potential customer about what makes your item special, about the amazing hand work that goes into each item, that makes it unique, special, superior etc.

I loved your blog post, Wendren!

ahhhh! the age old pricing thing!
I did a car boot sale once - I had a jigsaw on the stall - for 20p - a lady came up to me and said "will you take 10p?" - I said, "Er, no - its only 20p as it is!!". She put it down and walked off muttering. There are always people who will think that whatever price you put on is ALWAYS too expensive. You can't win!
SOme people look at my things and say that the prices are really good - some people mutter "I wouldn't pay that..".
So you have to price at what is fair to your craft, the time it took and then a realistic expectation of what someone would pay based on these factors. Your prices look great to me - I can't comment on the wool prices as its not something I know anything about and have never bought! but the books look lovely and those prices would make me buy rather than walk away.

Wren! fabulous wrapping ideas!