Michael Wendt on sun 22 jan 06
Kathy,
One quick way to determine if you can (not should) lower your prices is to
do a full cost analysis with the key items.
You know the drill:
get a notebook and make a list of every single cost item associated with
your process.
Be sure to start with fixed costs like the studio space, heat, lights, ...
the whole list.
After you time the production process for reasonable set of items, use that
time factor to "charge" yourself for the fixed costs based upon the
percentage of the work year it takes you to do the run.
At the end, you will know whether you can cut your prices or not.
One additional note: I check the stores to see what they sell the items for.
If they want a price cut, then their shelf prices should be lower. If they
keep the cut and sell for the same or more, you face a tough decision.
Ultimately, it is the high price of handmade goods over factory goods that
makes them psychologically important to people. Worth comes from the human
time spent so price cutting actually destroys their worth somewhat.
Good luck no matter what you decide.
Regards,
Michael Wendt
Wendt Pottery
2729 Clearwater Ave
Lewiston, Idaho 83501
USA
wendtpot@lewiston.com
www.wendtpottery.com
Karin Hurt on sun 22 jan 06
Hi All,
In the early 90's I took a weekend workshop down at Vince's place on Wholesame Marketing. The most important thing I took away from it was price "what the market will bear," here in Havasu what the market bears stinks, in Scottsdale, Sedona and other places like that things can be priced higher, so I've had to stay flexible. For our market here I've gone back to making smaller things, stuff the tourist can put in his/her pocket. I'm not crazy about it, but in the past my pottery sales have sent grandkids to camps. For those of you in business rather than being a hobbiest, of course it would have to be different.
Michael Wendt wrote:
Kathy,
One quick way to determine if you can (not should) lower your prices is to
do a full cost analysis with the key items.
You know the drill:
get a notebook and make a list of every single cost item associated with
your process.
Be sure to start with fixed costs like the studio space, heat, lights, ...
the whole list.
After you time the production process for reasonable set of items, use that
time factor to "charge" yourself for the fixed costs based upon the
percentage of the work year it takes you to do the run.
At the end, you will know whether you can cut your prices or not.
One additional note: I check the stores to see what they sell the items for.
If they want a price cut, then their shelf prices should be lower. If they
keep the cut and sell for the same or more, you face a tough decision.
Ultimately, it is the high price of handmade goods over factory goods that
makes them psychologically important to people. Worth comes from the human
time spent so price cutting actually destroys their worth somewhat.
Good luck no matter what you decide.
Regards,
Michael Wendt
Wendt Pottery
2729 Clearwater Ave
Lewiston, Idaho 83501
USA
wendtpot@lewiston.com
www.wendtpottery.com
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lela martens on sun 22 jan 06
Hi Kathy,
Sometimes potters from the east, or Vancouver come through for
a visit or a workshop to our guild, or Medicine Hat`s.
They always tell us that prices are at least
twice as high where they come from. I found this to be true when
visiting Vancouver.
I am on the prairies as well, as you might remember our stay at home
exchange.
With energy, freight prices the way they are, I can`t see how you
could sell for less.
I have never been refused from an outlet, but I have also never found
an outlet that will buy wholesale. ALL I`ve come across will only do
consighnment.
I`m presuming the 50 mile radius doesn`t work where you are
either.
I am leaning towards doing more `art` pieces, and larger functional stuff
that
others around here don`t do. Fewer `bread and butter` things.
A potter from our area takes examples of her impressed molded work
to a big trade fair in Toronto, takes orders for work to do for the next 8
months, and ships them.
Yup, it`s tough.
Best wishes from Lela
>I do a few small craft sales but my major sales
>venues are tourist type craft stores and local galleries and in
> summer, farmer's markets.
>
>Lately craft store owners are stating that other local potters
>have been reducing their basic price on what I call "bread and butter"
>items..mugs, casseroles, tpots pate sets etc.
>My wholesale prices are very reasonable..ie 6 or 7 bucks for a mug,
>22 for a small casserole and until recently I've had no trouble
>selling them...now it seems the bottom has fallen out of the market.
>
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