How to Price Your Artwork, Jewellery or Handmade Goods Page 2
Charge Per Square Inch
This is a little tougher in my mind, sure you might not take all the variables into account, but are you charging what you’re worth? Besides not every inch will be the same, some will have more effort than others, some things take more time then others. So basically you would choose your price per inch and measure the canvas (not suitable for pricing jewelry).
Price/square inch x number of square inches = Total
Some artists charge according to character. They will have a set price for each character/person in the work. The price may vary depending on whether or not they are in the foreground, background or midground. They may also charge for a background. Charging for color vs. black and white might also be something you want to consider. The prices are really up to you at that point. Size would also be charged accrodingly.
1 8″x10″ ($10.00) + Background ($15.00) + 1 Foreground Character ($25.00) + 1 Background Character ($15.00) = $65.00
Look At It From a Business Point of View
If you were to take everything personal out of this and look at it from a company stand point, it will change the way you see everything. If a business were to have a product it would start with a manufacturer. That manufacturer has to pay for the material costs, and the labor, which I’m sure they only want to pay $10.00/hr (but you pick your hourly rate). But they want to make a profit as well. So they add up the material costs and labor costs and add 30% of that cost on top, that is their profit.
Next the product would go to a distributor, they don’t do much but send it out, so they want 10%, so add that on top.
Now it goes to a shop for retail. They have big bills to pay, rent, power, employees, etc. So they want 50% – 100% on top of that.
Manufacturer: Material Costs + Labor Costs = A x 30% = B + A = C
Distributor: C x 10% = D + C = E
Retail: E x 50% – 100% = F + E = G
EXAMPLE: If you had a product that cost $2.00 to make and the labor was an hour at $10.00, then you have $12.00. The manufacturer wants 30%. $12.00 x 30% = $3.60 So the manufacturer will charge $15.60 ($12.00 + $3.60)
Distributor wants 10% so $15.60 x 10% = $1.56, so they charge $17.16 ($15.60 + $1.56)
Retailer wants more money so lets say they mark it up 100%. $17.16 x 100% = $17.16, so they charge the customer $34.32.
You are most likely acting as the creator, marketer, shipper, etc. So you decide how far you want to take this equation. You probably don’t have a retail store to pay for, so you should probably stop at Distributor. This is how I price all of my work.