ARTS AND CRAFTS ENTREPRENEURSHIP PROJECTA collaborative project of Artizona and SER

Inventory and Pricing

Pricing Strategy

Cost of Materials

Related Costs

Pay Yourself

Rule of 3

MaterialsRelated CostsYou

Cost of Materials

Write down the total cost of your materials per item. If you use one yard of material, but make three items from that one yard, then divide the price of the yard by three and apply the cost to the item. Accounting for all costs is very important so you know what your break-even point is. 

Related Costs

Account in your expenditures for the cost of the booth, any travel expenses, etc. Divide the total amount of related costs by the number of products you’ll be selling and you’ll have a better idea of the amount to add to each item sold.

Pay Yourself

Your time is of utmost value. Set a reasonable hourly rate and multiply by the time it takes to produce each item sold.

Inventory Factors

One of a Kind (OOAK)

Creating Small Scale Items

Functional Items

Trends

Pricing Fears

Customers Only Care About Prices

Prices Must Stay In Line with My Competitors

My Revenue will Drop if Prices Raise

2014 Trends

Social Responsibility

Repurposed/Reclaimed

Bold Geometric Shapes

Men’s Accessories

Pricing Do’s and Don’ts

Know the Show –AttendancePopulationTrends

Variety of Price PointsCreative with Sales –

Gift with PurchaseCombine Items (gift basket)Buy More, Save More

Avoid Destructive Competitive Pricing

Hard Costs – not feasible for small business

DO DON’T

Inventory

Bring enough to sell but not enough that your taking most of it back with you

Preview your items online and see what gets the greatest comments and start with those items

Multiples of five or six Present limited runs and show exclusives