Pricing leathercraft items
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- เผยแพร่เมื่อ 15 ก.ย. 2024
- I'm tired of people living in fear of sharing the good, back, and ugly of the real stuff. So...if you can't find the villain, be the villain. We're digging into leatherwork Financials together so you can easily make sense of your products worth. Real world talk here.
This video is sponsored by Quickrete high performance cement resurfacer...might as well, I used their bucket in the shoot. Hear that Quikrete?? Pay me!
"15% God damn them"...😂😂😂😂 u aint lying there man!!
Imma the kitchen table, Brother. And I agree...
We have concensus! That's it...I'm calling it a day and working on some aged bourbon.
I love my sheath and holster u made! I show them both off every chance i get!
Bwahaha im right there with you on the backpack
Ahahahaha
Some things I agree with, some are just nonsensical. Yes, you need to understand who you want to sell to and what they will buy and pay for. But it takes 2-5 years to really get a business rolling. Just depends on what you are willing to invest to get TO those buyers. I would rather sell one $300 backpack a week, rather than 300 little pouches. It takes less time to make one backpack verses 300 pouches.
Your breakdown for your business is a recipe for disaster. You'll never make any real money with those margins. 15% tax? Yup. Labor should be about the same as materials, or at least a lot closer to it. You want to make good money per man hour, then you need to make products that command a higher price tag. A welder makes more money an hour compared to the person taking your order at the local fast food restaurant, because the welder makes the company more money per man hour. The crafter selling 20-30 dollar items can't get paid the same per hour as the crafter who sells 100-500 dollar items. And your business profit margin should certainly be more than single digits. More like 20% or more. "Profits" is what grows your business and makes investments in machines to be more productive. Profits pay for better tools that outlast cheap bargain junk. Profits pay for advertising. Profits are the tools to GROW your business. Profit is not a dirty word.
Let us know where you are getting hides exactly the same size too. No matter who you buy from it varies. Your square inch cost per hide is bunk. One may be 22 foot, another 25, another 21. It varies. I get there is no need to be super precise, but with a whopping 5% margin, you have zero room for error.
Raising prices is a NORMAL part of business. Has postage held it's price since 2017? Has your blacksmith's been holding off prices? That sheath makes part of the VALUE of the knife. They are not going to go back to selling bare knives and think they will get the same business. People will shop elsewhere. My prices go up 3-10% every single year. Why? Because my costs go up, both personal and business. How many years are you working someplace without a raise? No one is going to do that.
Look, I own a business and leather craft is a side business/enjoyable hobby. You can run your business any way you choose, but you will never really make any money screwing around. You worry about competing with other people like the Amish. Why? No matter what you are competing with someone. Welcome to the global market. Just because you don't sell online, lots of people do. Lots of shoppers buy online too. You are competing with leather crafters, and you are competing with import goods. People who aren't willing to compete are generally the people who make shoddy stuff. You don't make shoddy stuff do you? People either want your stuff at the price you set, or they don't. It's your job to convince people why your stuff is worth the money. Why it's better. If you can't do that, then they don't have any real reason to buy from you.
That's all fair commentary. These are my choices based on my market, and my willingness to grow (or not). They're certainly not the end all answers but booyah, this video served it's purpose of opening the conversation rather than all of us scurrying about in the dark and guessing. Some dumbass had to lay bare their cards for all of us to learn. And for better or worse...I am that dumbass.
Thanks for your perspective
Thank you for being here. Without you, I'm...well...only me.
@@brokenbearleather673 understand that!!