Pricing is the subject I find most interesting. I know it has perhaps been beat almost to death in other posts but allow me to hit it one more time.
I see pens priced to varying markets. I understand that different markets bear different price structure but I also understand set costs.
To be honest there is not a pen kit out there that would seem to meet the break even point when sold for 15 dollars. Yet I see people are able to do it ( at shows) who seem to be attempting to make a profit.
I also understand that for some it is a therapeutic hobby. For me losing money is not therapeutic.
I hear various formulas for price. For example kit x three plus blank etc. For me that is hard to figure the spreadsheet bottomline.
Here is how I cost out a pen based on input from various sources and what I believe are true expenses. (Rink a member here was very helpful)
I will use a basic cigar in a nice grade kit as an example.
Kit cost 7.50 ( dayacom from exotic blanks of course)
Blank cost and prep 5.00
Certificates and promo 2.00
10 upcharge on parts 1.45
Covers shipping to me tax etc.
Misc. 5.00
Covers sandpaper, glue, finish etc.
Display box. 3.50
Total time $30.00
2 hours at 15 per hour includes choosing blank to customer ready.
Total 54.45
I would price it 59.95. We give a 10 percent discount for multiple pen purchase, which seems to motivate. If we have a limited supply blank (historic) we will up-charge it depending on demand.
This of course does not include any marketing time. And we do not do craft fairs or other venues that require a fee. If that were the case they would need to be factored in.
The hourly rate is based on the fact that it is my 15 yr olds business and i would not consider it enough for a true living wage.
How people price it much less than that I do not understand other than they discount or eliminate their time charge.
We manage to mostly sell what we have time to turn.
Is this realistic?
I see pens priced to varying markets. I understand that different markets bear different price structure but I also understand set costs.
To be honest there is not a pen kit out there that would seem to meet the break even point when sold for 15 dollars. Yet I see people are able to do it ( at shows) who seem to be attempting to make a profit.
I also understand that for some it is a therapeutic hobby. For me losing money is not therapeutic.
I hear various formulas for price. For example kit x three plus blank etc. For me that is hard to figure the spreadsheet bottomline.
Here is how I cost out a pen based on input from various sources and what I believe are true expenses. (Rink a member here was very helpful)
I will use a basic cigar in a nice grade kit as an example.
Kit cost 7.50 ( dayacom from exotic blanks of course)
Blank cost and prep 5.00
Certificates and promo 2.00
10 upcharge on parts 1.45
Covers shipping to me tax etc.
Misc. 5.00
Covers sandpaper, glue, finish etc.
Display box. 3.50
Total time $30.00
2 hours at 15 per hour includes choosing blank to customer ready.
Total 54.45
I would price it 59.95. We give a 10 percent discount for multiple pen purchase, which seems to motivate. If we have a limited supply blank (historic) we will up-charge it depending on demand.
This of course does not include any marketing time. And we do not do craft fairs or other venues that require a fee. If that were the case they would need to be factored in.
The hourly rate is based on the fact that it is my 15 yr olds business and i would not consider it enough for a true living wage.
How people price it much less than that I do not understand other than they discount or eliminate their time charge.
We manage to mostly sell what we have time to turn.
Is this realistic?
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