What to avoid when Pricing your handmade leather goods
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- เผยแพร่เมื่อ 9 มิ.ย. 2023
- What most people get wrong about pricing their handmade goods. We're trying to help you avoid the pitfalls of underpricing and undervaluing your work. As makers it is way too easy to reduce our prices and drive our business into the ground. It doesn't have to be this way. Hopefully after watching you'll understand why underpricing severely reduces your ability to be successful and continue to grow over time.
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I keep telling my one leather student that if leather items sell the moment you list it you have the item priced to low. Great vide on a scary tropic.
Years ago I had a friend remind me that it is easier to reduce/have a sale, etc... than it is to suddenly raise your prices. Price it right (as close as you can get) the first time.
So true. It's all about positioning. What is your meaningful point of difference in the marketplace? Who are you and why should the consumer care? You're also right on pricing and the danger of discounts (military discounts are a bit different). Instead of increasing value by reducing your price (assuming you're priced appropriately in the marketplace), consider increasing cost/benefit for the consumer in some other way. Offer a matching keychain to a tote promotion...add an airtag holder to a bag...or include a small item to help the customer care for the product after purchase.
Another added thought. I think we hav gotten so used to the way large tech companies run their businesses. At a loss for decades to gain market share and focus on extreme growth. That we have started to expect the same from every type of business including makers. But we need to operate differently. We make a physical product, not purely a service or software (which typically have much higher profit margins). Being realistic about what you can do within your business model is key to taking advantage of what it can do best. Don't try to outcompete the big guys, lean into what they aren't doing or can't do because they inherently have a layer of bureaucracy in their decision making process. Often for small makers that means excelling at customer service and quality. You're customers will love you for excellent customer service and become a repeat customer with the help of high quality goods.
Very common with publicly traded companies. I look for these when buying stocks.
@@slick-px4pq agreed. but not every company will go public. The strategies to IPO are very different from small private companies as they should be.
This is such important information! Too many do not consider enough factors when pricing - along with being apologetic about price and costs. Thanks for creating and sharing this information!
We're happy to help!
The biggest problem I have is that I hand sew things - which obviously takes a lot longer. So by including labor hours for that sometimes make the item seem ridiculously expensive.
True, but some customers appreciate hand-stitched because its completely hand-made/saddle stitch is extremely durable/and supporting craft is important to them. It's also worth noting that there may not be a big market for every item for the amount of time it takes to make. Imagine paying for a completely hand-stitched leather couch as an example.
Things of good or superior quality cost money. Then, the market decides. I ordered one of your bags for my wife. It's in line for production now. I can't wait to give it to her.
This was amazing. I'm a leatherworker, and this really helped me. I have struggled with my pricing. I'm going to take your advice and calculate everything going in to each product. Give myself a chance to grow. Thanks for this video. Keep uploading.
Glad it was helpful! Thanks for giving it a listen/watch
Just finished a set of coasters. Didn't keep track of hours but it is a LOT. All hand carved flower tooled each one a different pattern, lined, hand stitched, dyed, antiqued, same with the matching leather stand. Turned out gorgeous if I may say so myself. Then thought who on earth would pay what they're worth for coasters. They are functional but really they're leather artwork so I'm gonna price them very high and find out.
It only takes one person to want to buy them! It's really easy to put handmade goods in the same category as mass produced, which is why it's important to compete where big companies can't, like your hand tooled coasters. best of luck to you!
Important note: how you decide to sell will have a big impact on pricing models. Whether direct to consumer, business to business, retail, wholesale or a combination of these
That bag is amazing
thanks!
Begginer like me always worry competing cheap walmart wallets..,
Thanks making me remember studied Cost Accounting in college...
Sometimes, didn't calculate how much time we spend to learn Leathercraft and for doing practice to make it aesthetic.
it's easy to forget or not calculate certain costs because we think they are insignificant. But accounting for your time is super important it all adds up
Thanks for sharing your wisdom. I loved watching you all work on those lovely bags and your fantastic shop. I’m retired and just getting into the leather crafting business. Love watching you work it. Blessings.
Thank you so much for watching. Glad you enjoyed the video
Absolutely loved this video. It’s extremely informative and inspiring. This is a great source of information and I hope you are able to turn this style into a series. I’d love to hear more advice you have to share as it becomes available. Thank you both for being so helpful and supportive to potential competition and hobbyists alike.
Thank you! We're all ears if you have topic for future videos. We want this to be as helpful as possible to our community👍
Hi Nick.
I'm grateful for the advice shared in this video. It has been helpful to me.
Glad it was helpful!
Great subject matter team.
glad you liked it. It's so easy to get wrong, but once you get it right you can set yourself up for growth.
Thanks a lot...again
You're most welcome!
Made a mistake giving a 50-60% discount on bulk orders(over 200 pieces), never again.
That's a great lesson to learn and like you said "never again". I think we've all been there. Getting excited for a big sale like that can definitely cloud our business judgement. There is nothing like securing a big order. That's why having set terms helps; so you can be reminded ok, these are the parameters my business can handle. We also often bend to customers that are not our ideal customer. Almost always, your target market will not be asking for a discount because they value what you bring to the table.
Resellers won’t give full value on our efforts
@@V3leathercraft everything is a trade off. if you're working with a shop, you're also paying for the exposure to their audience/customer, merchandising, and for them to sell your goods. Which could mean more volume but less margin. Depending on your product and how your business is setup this could be good or bad. Some small handmade items that are quick to make and high profit may benefit from this. Larger more time consuming pieces, likely not. I don't feel it has to be a struggle. You should be working together with a shop for the best outcome.
Thanks for making this video, going threw the points. Its the first video of yours I've seen, well done. Pricing can be weird, I've charged $10 for setting one snap and $20 for one rivet because I got all the right stuff together to make clean awkward repairs.
Your Master tool/Weaver edge trimming tool is awesome, do you have any thoughts on the strap cutting machines out there? Weaver and Tandy both have manual and motorized ones. I also just watched your shop tour video are any of your dies made by Bradshaw steel rule dies inc? I've thought of working with them. Do any of your cutting die sets include the slot and rivet etc holes? rather than punching them separately afterwards?
Thanks, The Easy Edger is pretty great and saves a lot of time to hand beveling. We get our straps cut for another time saver. We've been thinking about getting a custom color direct from the tannery which likely require us getting a strap cutter. We would probably get one that has a motor like the Cobra AK 20 and I think Weaver has a motorized one too. It really depends on the amount of straps you'll need, cost, and space you have to dedicate to the machine.
When you turn your hobby into a business, then yes. Otherwise it is worth what it is worth to you.
ok cool so just a bunch of common sense got it thanks.
common sense not so common