If you are anything like me, someone sewing around life, kids, housework and a million other commitments, it is exceptionally hard to determine an hourly rate for your work. It is even harder to put a price on what we love to create but, if we want to make money off our hobby, it is what needs to be done.
This is a little formula I have come up with to assist me to price my items in a fair way. It also helps to determine whether an item is a viable product line or a big waste of time with minimal profit.
The first thing you need to do is choose an item. I am going to choose this mermaid skirt which I love to make and is a quick sew for me:
Work out the material costs and consumables, including things like electricity and insurance as part of your consumables estimate.
The fabric for one of these is $6, elastic $2 and I add a standard $4 to anything I make for consumables.
Total materials cost= $12
The next thing to work out is how many you could make in a standard working day if this was your full time job. I worked this out by making one from start to finish and timing on my phone stop watch. I decided on an 8 hour day and it took me 30minutes to make the skirt.
Now multiply your material costs by how many you can make in a day.
Total materials cost per day = $192
Think about if you were earning a wage to sew for an employer. What would you think is a reasonable wage to do this? I decided on $250 a day. Add your total material costs per day to your daily wage.
Total of materials and wages= $442
Finally to work out your sale price divide that total of materials and wages by the number of items you can make in a day.
Sale Price= $27
Now think if that price seems reasonable. Would people buy your product at that price? I think people would buy my skirt at $27. If the product price is too high workshop a way to get your costs down or minimize production time. Do you think this product line is then worth it? You may be happier finding a new item that gives you a good return.
Please feel free to add your workings in the comments and ask any questions relating to your results.
I hope this helps in some way, because let’s face it all those people who say “I would totally pay $80 for that” almost never do and we need to get serious about how we are pricing!