Michael Wendt on sun 12 aug 01
Who cares what others charge? Pricing should first and foremost be =
based on what it costs YOU to produce your item (materials, labor, =
investment, profit,etc.)... If all the other potters in your area =
are selling mugs 2 for $5.00, are you going to sell them for that too, =
even if it costs you $0.50 loss on each one? If they charge twice what =
you need to make a good profit, choose a price that earns you the best =
return at a sales volume you feel comfortable with.
For seven years, from 1973 - 1980, I kept production logs that =
tracked the time and materials for each item I made. I wrote down every =
step and timed how long they took and added them up for each piece. As =
a result, some of my prices are much higher than other potters in this =
area and some of prices are lower.
One spin off benefit of logging production was I got faster because =
I learned the importance of sequencing operations for best efficiency. =
Never do a step out of order and you get faster right away. Set up the =
work area with everything you will need within easy reach and mapped in =
so you don't need to look for it. Do enough of the same item to get your =
speed up. Plates now take less than 2 minutes each to throw as a result. =
I still work till 10:00 at night to get handles on over 100 mugs thrown =
that morning because the work needs to be done when it needs to be done =
or it won't turn out right.=20
Know your materials. The B-mix discussion points this out. Clay is =
both wonderful and troublesome at the same time. Learn how to get the =
results you want by paying attention to what you are doing and learning.
A few years ago, I did hundreds of stars for the Eastern Star =
organization for $0.50 each ( they were reselling them as a fund =
raiser). We lost nothing but money on that order because it was bid too =
low. Even though the stars were less than a ounce and we got more than =
$8.00/ lb for our efforts, they took a lot of time and we had to alter =
the cutter to compensate for the cracking that happens in the sharp =
inlets between the star legs. Even then, 1/3 cracked there! What a =
fiasco. Moral? Bid only after a trial run. Find the pitfalls and if they =
won't pay what you need to make a profit, don't do the job!
The fact that you are a clay artist does not mean you cannot be a =
good business person too. The key to correct pricing is to make sure =
that you are making enough money on the piece to make it worth while to =
produce. Let anyone else who wants to do so work at a loss! There is no =
formula that will work, only careful and regular analysis of your =
production methods.
Regards,
Michael Wendt wendtpot@lewiston.com
In a message dated 8/10/01 4:02:51 PM, rikigil@CWNET.COM writes:
<< The best way I can think of is to go to shows, look at other
potters in your ability range, and see what they charge. If your pieces
don't sell at your initial prices, drop one or two prices in a group to =
see
if they sell. >>
CINDI ANDERSON on sun 12 aug 01
Michael,
I would have let this slide, but since I thought your response somewhat condecending, I will throw in my two cents. It is pretty simplistic to think you work in a vaccuum and it doesn't matter what others are charging. Someone could follow your advice and go broke because they sell nothing One big thing I see that you completely are not addressing is the quality of the work. It could just not be worth what it costs you to make it A good business person realizes that pricing is complex, and not just based on costs but also the marketplace. What the people want, how much money they have, what else is
available from the competition.
Of course your point that you don't want to lose money on each item is valid, but even then I will argue sometimes you do intentionally lose money on an item (to unload inventory, to build a releationship, to get a buzz going, to get $ to buy more supplies while you are building your skills.)
Cindi
Fremont, CA
-----------
Michael Wendt wrote:
Who cares what others charge? Pricing should first and foremost be based on what it costs
YOU to produce your item (materials, labor, investment, profit,etc.)...
The fact that you are a clay artist does not mean you cannot be a good business person too. The key to correct pricing is to make sure that you are making enough money on the piece to make it worth while to produce. Let anyone else who wants to do so work at a loss!
Janet Kaiser on mon 13 aug 01
> Who cares what others charge?<
Both the public and said others care a great deal. You
start undercutting anyone and your name will be mud and
you are not doing anyone (including yourself) a favour
by thinking this way. Don't forget that mugs (for
example) are a major source of income which pays many
potters to keep their studios going and doing their own
thing. To be a successful business person, you need to
know turnover is a vital part of the whole structure
and the snowball effect is also very important...
Getting people to know and recognise your work, coming
back for larger pieces, sending friends and family,
etc. etc.
> For seven years, from 1973 - 1980, I kept production
logs that tracked the time and materials for each item
I made. I wrote down every step and timed how long they
took and added them up for each piece. As a result,
some of my prices are much higher than other potters in
this area and some of prices are lower.<
Ah, yes, but there are traditionally items such as
vases, which sell for a higher price than other forms.
Although jugs take more time, effort and material to
make, they cost less than a vase of the same size.
Reason? I suspect because historically, the vase was
seen as a luxury (often highly decorated) whereas the
jug was a necessity which often got broken and had to
be replaced...
> The fact that you are a clay artist does not mean you
cannot be a good business person too. The key to
correct pricing is to make sure that you are making
enough money on the piece to make it worth while to
produce. Let anyone else who wants to do so work at a
loss! There is no formula that will work, only careful
and regular analysis of your production methods.<
Sorry, but this is very simplistic and presumes that
the maker is producing a standard quality and quantity
of work. A production potter. No way should beginners
or students imagine they will even start to cover
costs, let alone make a profit. Some work never fetches
the price a purely mathematical calculation would
dictate it costs to make. Hence the importance of mugs!
Janet Kaiser
The Chapel of Art . Capel Celfyddyd
HOME OF THE INTERNATIONAL POTTERS' PATH
Criccieth LL52 0EA, GB-Wales Tel: (01766) 523570
E-mail: postbox@the-coa.org.uk
WEBSITE: http://www.the-coa.org.uk
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