As Business Lifestyle coaches working along side artists, crafters and designers we’ve come to realise that understanding the true nature of costing and pricing a product is a real issue for most creative practices, and a very big concern for every artist, crafter and designer.
So, if you’re not too sure about how to calculate the costs for your designs... don’t worry; you’re certainly not alone!
But understanding your costs, your margins, your pricing, and how to calculate them will mean the difference between success and subsistence for you. So it’s critical that you learn the process.
Why are costings so important?
If you don’t know exactly what to include in the production costing you will be underselling your designs and therefore you’ll lose money...
The key to success in your business is to understand the costing process properly and price your items appropriately. That way, you can feel good about what you do and what you create. Most importantly, you’ll know what it’s cost you to create your products.
With an accurate costing you’re better placed to price your creations too.
At ArtSHINE we work with our creative design clients to ensure understanding of the true costs, and we share a costing & pricing system that’s tailored to your business lifestyle.
Do any of these resonate or ring bells with you?
* I have a product in mind but don’t know what the costs involved are.
* I have a product already but I don’t know what the real costs of production are.
* I have a product and it is overly expensive to make so I can’t sell for the price I need.
Here’s some quick questions to consider:
* Are you taking into account total costs, and not just material costs?
* Do you know how to work out your own hourly rate?
* What’s the average mark-up in a retail shop?
* What’s the best wholesale to retail price point ratio?
* What’s your real profit margin on the products you create?
At the end of the day, there’s no point in under valuing and under selling your products.
You want the products that you’ve created to make good profit. Profit isn’t a dirty word. And you certainly can’t survive as a designer without it... Plus you deserve to earn money and receive a proper payment for all your hard work.
Building a sustainable business lifestyle means that you can keep creating; thus doing what you really love and enjoy.
Would you like an invitation to attend the next Quantum Compass ‘Costing & Pricing’ workshop? - contact us now here: CostingAndPricing@QuantumCompass.com.au
Want to know more? It’s as simple as 1... 2... 3...
2: Send an e-mail to this Quantum Compass address: CostingAndPricing@QuantumCompass.com.au and get more info about our workshops for creative professionals.
3: Contact Vinh for a no cost, no obligation coaching session: just call Vinh direct on 0410 636 138, Vinh@QuantumCompass.com.au, or go to: