The application runs on Apples IOS devices like the iPhone and iPad and is available to download from the App Store. It was developed as a native app and so can utilise the power of Apples development environment.
The Pricing Calculator was designed to make calculating your pricing as easy as possible. So the form has a list of simple fields and sliders for adding your information. You do not complete them all, just the ones you think are important to you.
We really like the To Do list and use it ourselves every day. It has been designed to help you get things done and not to over pressurise yourself.
Pricing is one of the key elements to running a successful craft business. So below we have listed out some of the things you should consider when working out your prices.
A pricing formula cannot ignore factors that are outside of your control. The pricing of your competitors, the wider market conditions and fluctuations in demand.
If you create an item, lets say it is a scarf. Your competition is not just every other scarf but any item that does the same job as a scarf. A hat, a hood, a collar etc.. If the scarf is not for keeping warm but for a fashion item then you are also competing with lots of other accessories.
You are not only competing against other handmade items, you also have to look at the mass produced items. You need to think about where you are selling, it is sometimes cheaper to sell online but your competition is very easy to find. If you are selling at an event you may be the only scarf seller but your potential number of buyers will be less.
Do not base your pricing on being cheaper than your competition, make it a fair price looking at the quality of your product compared to theirs.
The condition of the market can play an important part in your potential to sell at a specific price. For example you may be exhibiting in a wealthy area and that may counter a struggling economy. If there is not much money around you may need to discount your product on the day of an event to attract more sales, but if you discount too much it will eat up your profit and you could end up trading at a loss.
You may have been happily making your items for years and doing well, then other people notice that it is a popular item perhaps with a relatively low cost of production. Suddenly the market is flooded with similar items and you are competing with lots of other. You will most likely have something that makes you stand out from the crowd. Play on that, perhaps increasing your prices as a much better product.
You need to be able to work out your cost price per item. This will give you an idea of a wholesale and retail price. However, you may at the beginning have a rather high cost price because you are buying materials at retail prices. This is not a bad idea to start with as it can save you money. If you are testing the market and buy the material for 20 items and your idea fails, then you have not lost a fortune. If you by wholesale materials but have to buy enough to make 1,000 items, then you are exposed to a much higher risk and may have a cash flow issue.