Do you see this eariings on the photo?
I have just finished them and posted to my shop on Etsy. The price for this pair is 22.44 EUR.
What do you think - is the price rather cheap or expensive?
Well, to make the process easier for you, I can bring some numbers.
This earrings are made of 12 mm Swarovski Rivoli (1,65 EUR pair + shipping 2,70 EUR), 11\0 Delica beads (1,95 EUR for 5 g + sh 1 EUR), 15\0 TOHO beads (0,60 EUR for 5 g + sh around 1 EUR as I made a multi order) and 925 silver earwires (2,50 EUR pair). I would not count fireline, one broken needle, electricity and heat - but in fact this prices should be counted. Also I won't count the amortization of my crafting instruments.
So, I spent on the materials 7,42 EUR (I counted beads by the half price, because I have left nearly the half of the beads I ordered.)
Now, the biggest article in handmade - the time. This is an easy pair of earrings. I didn's spend time to draving the sketch, searching the internet, I just made them. I took me nearly 4,5 hours. Next, I spent something arounf 45 minutes to make photos and make the listing on Etsy. I won't count the cost of camera and etc here....
So I get 5 hours of work.
Now, the biggest question - what is the price of working hour in your country? The minimal hour fee in Estonia is 2,13 EUR (Beading is my hobby - I don't think, that my work is worth so small amount of money, but OK, let's count by this.) So we get 5 x 2,13 = 10,65 EUR
Counted by materials and time, I spent 18,07 EUR to make this earrings and my profit makes 4,37 EUR minus Etsy fee, minus PayPal fee.
Considering this statistics, what do you think - are this earring expensive? Or I should make the price higher?
With your calculations everything is OK. I would have to add 21% VAT more .. is a tax in Spain. But the things are that not all the people can buy expensive a bit things. The price is right but is some high for normal people. Not everyone can buy earrings for 22 € (more shipping), just if you like a lot.
ReplyDeleteEarrings are beautiful!
ReplyDeleteBut buyers are not interested in knowing such a detailed calculation
Usually for purchase simply think "I like it and I want it" :)
Interesting post! Thank you!
ReplyDeleteManual work should be valued
ReplyDeleteI think, that buyer should understand, what he or she is paying for. If we won't tell the buyer the components of price - who else could do this?
ReplyDeleteI 100% agree, that one of a kind items and manual craft work should be valued, but first, the buyer should see the difference :))