Are you charging enough? Whilst looking through some pages, I notice that some amazing items are priced incredibly low. Shall we break a price down? Lets say that you make fashion jewellery, and for this specific piece, youre charging £3.00 (plus P&P). The beads cost 35p. The wire costs 10p. The charm is 50p, and the clasp is 20p. This means that your item costs you £1.15 to make. Now lets say that this piece takes you 20 minutes to make. How much do you charge per hour? From 1 October 2014, the NMW is £6.50 per hour. So, if you charged the NMW for your time, that would be £2.16 for the 20 minutes of your time. So far were totalling £3.31 for your item. But wheres the profit margin? How much profit do you charge for? Some people are unsure as to how much to charge for profit. Personally, I see 20% as a fair amount. So on top of the £3.31, we are going to add a further 20%; which is an extra 66p. That means your item should be £3.97. So what have we found out there? For that £3.00 item you have priced, you are undercharging, and you are missing out on the profit margin. Final note: Charge what youre worth and dont apologise.
Posted on: Sat, 20 Sep 2014 20:58:00 +0000
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