Hi. Welcome to Lesson 7
of How to Sell Your Crochet for Profit.
My name is Sedie and this lesson is
about how to sell or how to price your crochet for
varying venues. So we're going to
go through and look at different pricing variables depending on
where you're putting your items to sell. So let's get
started.
When pricing your crochet there are varying scenarios that will require you
to adjust your price from me your suggested retail price a your retail
price. And
so what I want to do is I kind of want to go through
as quickly and I can. So this is going to be
kind of a information intensive
lesson but it won't go through as quickly
as I can some different scenarios that I think will benefit you to go through and to
determine pricing
for. And these are scenarios I find to be the most common. There will always be
uncommon scenario but once you begin to get a really good grasp and
feel for how your pricing items for the more common
scenarios when an uncommon scenario comes along you'll have enough
information and enough......
enough experience...my gosh
I almost lost it there. Enough experience to
be able to say 'Oh that's okay I think I can figure out
this pricing here.' So
the areas that we're going to be covering, and we're going to be covering them
not intensely but I'm definitely going to
go through and give you a few pointers
on each one. And they are the
craft show, the consignment, the
flea market, the commissioned
sale and a few more that were gonna take a look at but
let grab a pen and paper
and get ready to take some notes on
the paperwork that was attached to this video
that will help you but take some notes on there of
things that I may say that may not be in the paperwork.
The scenario we're going to take a look at is selling at a craft show. Craft shows are
really big especially in the warmer months sometimes in the winter months as
well
more indoor but really in the warmer months that are a lot of craft shows that
go around. And one thing that you have to be
aware of when you're thinking of a craft show
is that know your variable costs are going to be
higher because you are going to have payments for
the setup at the craft show.
The table and the fee that you have to pay to be in the craft show.
So you want to keep those in mind as you consider your pricing for the items
your going to be
selling at the craft show. Something else you want to be aware
of is what type of craft show and what
type of audience does that craft show attract.
Now if the audience that they attract is not really
in your target audience I would not
suggest that you do a craft show that is outside of your target area
because you will then have to create
other items you don't normally create just to accommodate
this craft show making your costs a little bit higher
again for that month because of that particular craft show.
Now if you're doing a craft show whose audience is made
up mostly up your target people
then by all means please go ahead because you will have
inventory and you will already have pricing in place for the inventory that
you will create
for the craft show. So having
said that let us determine a little bit of pricing for the craft show.
So for a craft show
now this is probably one of the only places that I will tell you to use your production
cost as your base
versus your wholesale cost as your base and I will tell you why.
If you were working a craft show that you feel
your prices are a little bit too high for starting at your production cost
versus your wholesale price gives you a little bit lower
a little bit more of a leeway
in order to adjust your prices to accommodate
the craft show. Now if the craft show goes too much lower then
your normal retail price or
it really asks you to undercut then I would suggest not doing that craft show.
But if we look at our scenario and
we go to our production
price cost that would be about $45.50
that was our production price cost. So
if we mark that up we want to mark it up from
80% to a 100%. So if you mark that up 80%
multiply it by 1.8 to get
the 80% number we're going to get $81.90
per scarf. Now the only reason that
I would suggest that you do it that way is because you still making a profit.
You are still getting the amount that you should get
and you can let your customers know that you have
special pricing for craft shows. So when they look
at your retail pricing which is based upon your wholesale price
they're not completely blown away you can always make that distinction.
However I would not suggest that you be
too much or that you be any lower than 80%.
So again if you're doing
a craft show and you want to do a 100% start from your production cost
and do twice as
much then your price would be $91.00 per scarf.
And
that would be taking out the wholesale scenario.
And this is the only time
that I'm going to say that you can you should probably go to your production cost
so that you can get your cost down. I
like craft shows but they are a lot of work.
They increase your costs. They take
up time, they also take up
your time and that is a cost also that you have to consider.
So they become a little bit more inflated
so you need to sell more in volume
which is the reason why you may want to reduce your price
just a little bit just to u make sure that your competitive and make sure
that
your target is enticed and excited
about your items. so that would be
the craft show scenario. Next we're going to talk about
flea markets.
As we get into
flea market pricing there are certain things that I want draw your
attention to.
First of all if you're going to sell
and a flea market that's great but you definitely need to do your homework
and be completely intune with the audience that is
there they are haggling audience. Flea market audience comes in and they're not looking
to pay
suggested retail price retail price for anything of that nature they want to
haggle
so you need to be prepared for that. Now if your audience is not
a flea market audience I do not suggest you do flea market,
however, if you're audience does fall in line with a flea market
audience it may be a great opportunity for you
to get the word out about your business and to actually get some new customers.
So here are some things that you want to keep in mind
when talking about your flea market
pricing. Number one: make sure... I'm sorry....
make sure that the price that you have
for each item is clearly marked
on each item so that
your customer or potential customer can
can see the price and know where they need to begin haggling
from. Number two: use whole numbers instead
of numbers that need fractions or
change. You want to use numbers
that make it easy for them to hand you the money
and you hand them their item. So for example
5, 10, 15, 20, 25, 30, 35, 40, 45....
I think you get the idea anything that can be just
pulled together easily and handed over with out any
playing with the change
that is what you want to price your items at. Using numbers
that it seem a little bit lower than the number you actually want to get.
For example, if you want to get $50.00
for your scarf you can price it at
$45 because you're making a just a little bit lower. If you want to get a $100
price it at $95.
You need a haggle room. You
need haggle room when you're working at a flea market.
So make sure that you are prepared
for that. Ok, soon now
that we have talked about some things to keep in mind when you're doing
a flea market I'm going to give you some scenarios that should work for you
when pricing for the flea market. Pricing for the flea market cannot be
retail it must begin at wholesale,
always at wholesale it must be in a wholesale,
but it cannot be a retail price because people that go to flea markets
are not looking they're looking for bargains they're looking for
opportunities to get things at a lower price.
So my suggestion is to mark things up
about 20% the most you can do 30%
but 20% at the most and
or down to just selling
at wholesale prices.Now that is another reason
your wholesale price is important if you
if you choose or if you determine that you need to use
a lower price or a wholesale price when you're
doing a flea market then you've
all ready built in your 30% profit margin so you're not
losing anything. If you sell all your
items at wholesale prices at the flea market
you have still made a profit you are still
able to continue your business. So
that is why I say to start at the wholesale price
with the flea market because your also marking up
a much, much smaller percentage then you would
for retail. So if you're going to do
20% then you would take your wholesale price which
is $59.15 if we're considering our scenario
and you would multiply that by 1.2
which 2% and you would receive
$70.98. Now
keeping in mind that I said to use whole numbers
for the flea market pricing that would then be
$70 or to make it even look more enticing
you could say $65, however,
you don't want issue undercut yourself so you determined
what works best for you. If you want to mark
up 10% then you would multiply
that number $59.15
which is the number that we determine if the wholesale price on our
scarves by
1.1 which would give you 10%
a10% markup on the item
and that would give you a price of
$65.07 and of course for the flea market you would mark that down to $65
and if you wanted to mark it down a little further you could mark it down to $60.
Now as you can see all
of these prices have a profit margin
built into them for you and your business
and that it so important
because once you build in and you know that
whenever you sell something. You're making a little bit of money
you're making the money to sustain
your business then you feel better about your business you don't feel frustrated,
you don't feel
angry, you don't feel resentful toward your customers because
really your customers have nothing to do with
your undercutting yourself if you undercut yourself and you
don't give yourself a profit margin. So
those are the things to keep in mind when we're talking
about a flea market. Next
we're going to talk about consignment.
Consignment pricing is when
a shop want to try out your
items in their store for their audience. They're not really sure
if what you are selling is actually going to sell well in their stores
so they don't want to do an up front
investment in your items without knowing
or testing how they're going to do. So
what they say is let's put the items in the store
and if they sell we get a percentage
and you get percentage. And
usually the percentage
splits that I've seen have been 60/40.
There are some that are 80/20 and then there are some that are just 50/50.
If your able to negotiate and they don't already have terms
in place then I want to suggest that you
negotiate a 60/40 split 60% for you and 40% for the shop
because of course they are your items you have put in all the work you
they are simply providing the venue. So
if you do it that way you would start with your wholesale
price. Now we would work
them pretty much as if they were doing it wholesale.
So the price that we would put on
the item because we would be putting be price
on the item for them to sell it for so we would take the item
and this is the wholesale price and I retailing it at 100%
so I want it to be in that shop for a 100%
and then if it sells I will get
60% of that and the store will get 40% of
that which is OK because you know that you already have your profit margin built
in there.
Now we get to the part where we get to talk about pricing
for friends and family. If you're like me
you probably have a little bit of a hard time
trying to figure out what your pricing should be for your friends and family
and that's only natural because we want to feel that we're giving them a
discount
or that we're offering them
an incentive that other people don't get because they are closer to us.
I want you to keep in mind that when you're pricing
something for friends and family like when you're charging them, when you're
asking them
to pay you for your services you are not doing
something to them. Now I'm going to repeat that:
when you are charging your friends and family
for the services or for the item that you are making for them
you are not doing something to them.
You are providing that service to them
and you are building your business
and they are supporting you in your
endeavor to build a business. Keeping that
small thing in mind will help you when
it time to say, "Hey I'll make that for you for
'X' amount of dollars I usually sell it for this amount
but I'll sell it to you for this because you're
my sister, my cousin, my aunt, my friend."
Whatever the case may be.
There are a few ways that I've found that work really well when you're trying to price for friend and family.
First of all
we're not going to take the
production price nor are we going to take the wholesale price.
We're going to take retail price. We're going to take the price
the you use to offer your items
to the public. And a nice way to do it
if either offer 30%
off of an 80% markup
that you've done or 50% of
a 100% markup that you've done. So if we consider
our scarf scenario, ok?
The scarf at a 80% markup
would be $106.47 so if we
take 30% of that then we would charge them
only $74.53 or
if at the 100% markup
$118.30 we give them
half price we would charge them $59.15.
The reason we do it this
way is because you now have not only
your wholesale price completely covered but you also have the
opportunity to make a profit
continue to build your business not suffer
for feeling that you
are not honoring your friends and family
and honoring them in a way that they feel good about helping you build your business
and receiving something that you've made for them whether they've
paid for it or not. Trust me I have done both
and I know that people love it even if they have to pay for it
their excited to be able to tell their friends
that 'My sister made this for me.'
or 'My cousin made this
for me and I got a discount but this is
how much costs.' You know so please keep in mind that
it's not a bad thing to charge your friends and family it actually makes you look
more professional, more dedicated
and more focused on the fact that what you're doing
is a business and you're not just
selling things as a hobby or now just playing around
but that you really serious about this and that you know
what your numbers are in order to reach your goals.
So again don't feel bad just give them the discount
you both win and everybody happy.
The last thing
I would like to talk
upon briefly is
pricing for charitable
or nonprofits. Now
something that I've learned is
that although non-profit usually get discounts from here or there
they actually do have money for the things that they are paying
for. So if a non-profit were to ask you to make a certain number of
items you charged them your wholesale price because they are going to take those items
items and
sell them for their charity you would still be
well within your comfort
to do that because they
already have a budget for that money.
So don't feel that because
they are a non-profit you now have to give them
a discount more than you would give any other person.
You don't have to do that. The other thing I want you to keep in mind
as crocheters we make
a lot of items that we simply give away.
And I don't know if it's just the nature of the people who
are in the craft or
if it is just something that we
love to do and because we get so much stuff around us
we decided we need to give it all away. Because you're in a business
your time is going to be very valuable and
you needed to keep track
of those items that you do give away
and mark them down because at the end of the year
when you're doing your taxes they
count and business expenses.
If you take the scarf
that you usually retail at $118
and you give it away to a charitable
auction, for example, you can keep that
down and makes sure that you write it off at the end of the year as
a charitable donation. There's no reason
for you not to count that in
your business transactions. You didn't get the money for it
but you did give something and so that counts
for something. So those are the two last things I want you to keep in mind
as we think about pricing for
various things. I hope that you have learn something here
and that if you are at all confused please leave a comment
and let me know and I will do my best to answer for you.
Thank you so much for watching and we'll see you next time.
For more infomation >> Gumy Bear play in Pepa Pig house 💗 Toys for Kids - Stop Motion Animation Video for Baby - Duration: 2:52. 
For more infomation >> Touchdowns for Hope - Duration: 3:23. 
For more infomation >> GAWVI - Fight For Me (ft. Lecrae) | cz titulky - Duration: 4:01. 
For more infomation >> Clive PD Going Pink for Cancer Awareness - Duration: 1:06. 
For more infomation >> Pink hair for breast cancer research - Duration: 1:08. 
For more infomation >> TD Jakes ..You're A Liar ᴴᴰ - Motivational Speech for 2018. - Duration: 9:35. 
For more infomation >> How to apply for College financial aid - Duration: 5:20. 
Không có nhận xét nào:
Đăng nhận xét