Chris Campbell on sat 23 mar 02
Anji asks -
' So if one was going to go to another area to sell at
some market or gallery or what have you ... How or
where would they start to figure out what price range
there is in that area???'
This is a sure way to make yourself crazy. Change prices everytime you
change location. Or, run around to check other prices and change yours to
match. Run to the grocery store to get a feel for pottery prices???
Calculate your costs to set your prices. You will then be pricing from
a solid base of knowledge. You will be able to relax and concentrate on your
customers instead of worrying about the guy/gal in the next booth.
I am not saying this is easy and I am not saying that I always did it
this way. At the start, I too ran around like a chicken checking prices and
fretting over mine. I would walk the show and mentally groan over being too
high or too low. Oh, they have more customers than I do !! I must be doing
something wrong.The 'Paranoia Unlimited' was always ready for boarding at my
station.
I was doing something wrong!! I was forgetting all of my years of
business training because I was selling my own work. I was forgetting the
most simple pricing formula on earth - materials plus overhead plus labor
equals cost. Selling price must exceed costs in order to make a profit.
Profit feeds the potter and buys more clay.
Chris Campbell - in North Carolina - Profit is not a four letter word.
Chris Campbell Pottery
9417 Koupela Drive
Raleigh NC 27615
e-mail : ccpottery@aol.com
website : www.wholesalecrafts.com
John Baymore on mon 25 mar 02
I was doing something wrong!! I was forgetting all of my years of
business training because I was selling my own work. I was forgetting the=
most simple pricing formula on earth - materials plus overhead plus labor=
equals cost. Selling price must exceed costs in order to make a profit.
Profit feeds the potter and buys more clay.
Chris,
Good information.
One of those "nit picking" details here........ and what I think you real=
ly
WERE saying...... but maybe was a little unclear.........
The materials costs figure which you establish is what "buys more clay". =
The labor figure is what "feeds the potter" (her/his wages).
"Profit" is the "reward" for taking the risks with your time and money in=
your business. It is above and beyond your wages.... which is the money
that you would have gotten if you worked at a job for someone else.....
your paycheck. "Profit" is the part that is usually fueling future
development of the business or is what is being put aside for business or=
personal investment, or for developing a nest-egg in a bank savings
account, or something like that.
As a business owner you should be able to give yourself a paycheck..... a=
nd
ALSO make a profit.
If you are running a "sole proprietorship" for tax accounting
reasons........ because you cannot deduct your own labor in the cost of
goods ........ it is easy to sort of end up looking at the "net profit o=
r
loss" as being your "profit"........ but that number is a combination of
your wages to yourself for the year AND your profit for the year. Only t=
he
potter her/himslef knows what portion of that "net" number is supposed to=
be for wages and what is supposed to be a profit .
Best,
..............................john
John Baymore
River Bend Pottery
22 Riverbend Way
Wilton, NH 03086 USA
603-654-2752 (s)
800-900-1110 (s)
JohnBaymore.com
JBaymore@compuserve.com
"DATES SET: Earth, Water, and Fire Noborigama Woodfiring Workshop Augu=
st
16-25, 2002"
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