Everyone struggles with how to price their products. People compare their prices with others, pull numbers out of the air and generally just feel strange asking for money for something they made.

But pricing is easy. Just follow this simple equation:

Cost of materials + (Number of hours worked x hourly wage)

The part people stumble on is how much to pay themselves. By this time, you’re not learning to perfect your craft (at least, not if you’re intending to sell it as a business). You already know how to do it, you’re established in skill. So it’s not an issue about how fast or slow you work.

Moreover, you deserve to pay yourself at -least- minimum wage.

Setting prices isn’t hard – it’s just difficult because we tied emotionally to what we create and we have a hard time putting a price on it.

Now if you’re working in trade for portfolio photos, other products or services, it’s obviously different, but that’s another post for another day.

Next Tuesday’s post: Attracting new customers, especially when you’re starting up

This entry was posted on Thursday, September 24th, 2009 at 2:41 pm and is filed under selling. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.