figuring out pricing

[Anonymous]

I make tapestry purses/handbags. I have recently had a friend suggest that I start doing purse parties. I guess there is a woman that comes in from an hour away and has been doing them.
Her purses I guess look a lot like mine but have a beaded handle...mine have a regular handle out of tapestry that matches the purse colors.
She sells her purses for $125 each. :shock:
I am selling mine for $25 each.
I get my tapestry for free (dont let that fool ya these are beautiful) and spend around 2 hours of time on them. The money I put into each is around $5-$7.
I feel like no one will buy them if I price them more than the $25 each. However, I am making other styles that I am using pieces of leather on that I am marking considerably higher than that because of their uniqueness.
These other purses are also one of a kind though.
Any thoughts?
Lori in Wa

[Anonymous]

Forgot to say that the way I came to the amount of $25 for selling that one style is because of $5 materials and $10 an hour for my time on each one at two hours each.

[smbwallace]

You should price them how you feel comfortable. People always love to get a good deal, and you need to get back more than what you are putting into them. Pretty soon you can make them on an order basis, I bet. Do you sell online? If so, include your website in your sig line so we can take a look!

[Anonymous]

****You should price them how you feel comfortable. People always love to get a good deal, and you need to get back more than what you are putting into them. Pretty soon you can make them on an order basis, I bet. Do you sell online? If so, include your website in your sig line so we can take a look!*****

I have decided to try pricing them at what I would like to get out of them. It isnt blown way out compared to other purses/bags I have seen. If it doesnt seem to work after this craft fair and the first purse party then I will bump the prices down a bit and try it again.
I sure dont want to get burnt out making these and feeling like I am barely getting by.

I would love to have a webpage with some of the bags on there. The problem is that each bag is one of a kind so I would have to really know how to work that page to keep changing photos on there for what has sold and what is waiting to sell.
I dont know anything about webpages. :?

[Debbi]

Hi Lori in WA :)

I'm Debbi in WA. North of Spokane, to be exact.

On the pricing, I think you should price them where you feel comfortable BUT there is something to be said for a buyer's perception of value. A hand made bag for $25 is unheard of, and I would wonder if people are perceiving it as not being worth as much because you have it priced lower. I'd probably raise the price slightly and see if sales drop off; then maybe do it again until you see a change.

It's funny but a buyer's perception of value is very important. If they think something is cheap but then again of poor quality - they won't necessarily buy it.

On the web site, if you're really interested and/or ready to put your bags online, send me a PM and we can work something out to get one built for you.

D

[Anonymous]

Debbi, that buyers perception thing is the thought I had too. Especially because of the bags I have seen priced unheard of that are similiar to mine and people buying them. Go figure! :lol:

So that is why I am trying out new prices at the craft bazaar and the first purse party I am doing. We shall see how the consumer likes the prices. ;)

Thanks for the offer of the webpage...I will remember that. :-)

[Anonymous]

The craft fair was great! I sold three bags for $88 total but had an order for another one in backpack style for $65.
I had an order for a bag earlier in the week and now just got another new order. I am keeping busy...which made me think of the pricing again.
I have set the lowest price at $42 a bag. The are more time consuming than I originally thought.
So after finishing this backpack and the special order purse I will start building my inventory for the first home party.
I want to add in some fun tea pot cozies and festive holiday aprons for cookie making, and tapestry throw pillows.
Lori in Wa

[Debbi]

Congrats, Lori. Sounds like you're busy busy! When you get your inventory built up, don't forget to get in touch about your web site. Good luck over the holidays!

Deb

[Anonymous]

thanks Debbi!
this is my last special order for now. So I dont know how the next few weeks will be for income. But I am looking forward to the first home party and praying that someone from that wants a home party and so on.
I am offering the home party hostess 20% off her purchase for the night.
I also ran into a snag with the backpack special order this week where when talking to the client about specifics on the phone she sounded unhappy with the price we originally agreed on. So this reminded me to get a deposit of half down at the time of order.

I am playing around with the idea of the deposit being nonrefundeable.
What do you think about that?
Thanks!
Lori in Wa

[Debbi]

Lori,
I think that putting down a deposit to cover your initial costs is totally acceptable - but the customer might not agree. Can you sell the bag to someone else if she decides not to get it? But then again, any kind of custom made work should have a deposit...

I'm torn on this one; I guess I would do a small non-refundable deposit on custom work. It's the same as design and such, I suppose. I always ask for a deposit up front to cover at least part of my time if they change their mind - plus, it makes me certain that they really are interested.

I'd say go for it! Let me know how it goes.

You know, I can't remember if you said you do this already, but have you thought about the Christmas craft fairs? I know there are TONS around here all the time.

d

[Anonymous]

I just got done doing a Christmas bazaar and did well. :-)
I dont know of anymore though but am having my first home party at a woman from my church's home on Dec 1. She saw my purse and gave me the idea.
On the topic of customs orders and a deposit...I would feel good about some sort of non refundeable but I dont feel comfortable with half of the purchase price being that.
I usually ask for a deposit of half the finished price...maybe 20% can be non refundeable.
hmmm...thinking on this.

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