How to price your products to make a profit

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One of the most important things in business is pricing your products so that you make a profit. It is also one of the most difficult parts for

new business owners. Just how do you go about pricing your products so that you can get a profit? The answer is simpler than you think.  When you

are first starting out, the best thing to do is take all your supplies and double the cost to arrive at a price. The most important thing to do is keep very

good records of all your supplies, including shipping cost and any fees for selling your products.

The best way to keep track of your supplies is to use a price calculator to keep track of all your supplies and create a product recipe for products that

you create often.

One important thing to keep in mind when setting your prices is not to price your items based on emotion. Do not allow your emotion to factor into

your price. Use a price calculator to determine what you should charge and stick with that amount. Most entrepreneurs find it difficult to set a price

and stick to that price.  They often feel guilty or feel that they will not be able to charge what they should charge. That is emotion talking and you need

to learn to tune that out. If you listen to your emotion and price your product too low, you will cause buyers to questions why your price is too low.

There is a perceived notion in most buyers mind that quality costs more. You need to remember this when pricing your products.

Once you have determined your price, it is advisable to do an internet search to make sure your price is in line with similar products. You can do a

google search and also look on Etsy. This will help you feel more comfortable with your price. Remember to stick to your guns and do not lower your

price.

Remember that you are pricing your time, passion and creativity when you are pricing your products. Be proud of your products and remember

people are buying your unique product because it speaks to them. It requires trust for a person to purchase from you and setting your price too low

can cause that trust to be questioned. Buyers expect to pay more for quality and if the price is too low they will associate that with lower quality.

If you need help with a price calculator make sure to signup for our newsletter to get our price calculator for free. It is very detailed and can be used to keep track of product recipes as well. Click HERE to get the price calculator. Have questions please leave a comment and we will be happy to help.

 

5 Comments

  1. Janis atwood on June 19, 2018 at 11:59 am

    Just found your web and love your stuff

  2. Nancy Smith on October 12, 2018 at 1:43 pm

    Hi Lori, my name is Nancy, and I’m new to the wreath business world. My husband and I have this on going battle of me wasting money buying supplies! I’m just now starting this I told him to make money you have to spend money. Please advise me on how to do this without putting us in a hole financially. Some people say it’s good to just buy as I get orders, but I want to kind of stock on supplies.

    • Lori Jacobs on October 15, 2018 at 11:42 am

      When you first start a business you will spend money because you have to have supplies to make items to sell. It is good to start with about 5 wreaths then sell before you buy more supplies. The thing to remember is that you can write the items off on your taxes and you need to reinvest your sales back into your supplies. It takes time to build a business. My husband was like that at first as well.

  3. Olen Kregger on October 19, 2018 at 12:56 am

    Saved as a favorite, I really like your blog!

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