I think everyone who makes and sells handmade goods has asked and probably struggled with the same question: pricing! This is especially difficult for those of us who make very time intensive crafts. I'd like to pay myself a sensible hourly wage as I do consider what I do to be a skill I've practised and improved upon for years. However if I actually did I worry my prices would either be laughed out the room, or even if people thought they were reasonable would just price too many normal folk out of the market, which would not be my intention at all.
I came across a pricing formula specifically meant for time-intensive crafts over at handmadeology which I found very interesting and led to some good debate.
[(time x $per hour) + 2(cost of materials)] x 1.1 = wholesale price
wholesale price x 2 = retail price
The author of the piece imagined the $ per hour to be at least $10 but acknowledged for more skilled artisans it surely ought to be more. I must admit to rarely thinking about how much time something took me and mainly focusing on the cost of materials. But if I were to follow this formula, I would have to drastically hike up my prices. I would have to at least double them if not more! I'm not sure I'm quite ready for that.
Luckily for me the income from my crafting is not 100% vital to our financial survival (although it certainly helps!) but then I worry that if I price too cheaply I could be hurting full-time crafters for whom it is their business and main source of income, which I would never want to do. It's all gotten a bit political!
As crafters or consumers of handmade products, what's your view on this? Would you use this formula? If you already do, does it work for you? And as a consumer, are you happy to pay more knowing it is handmade?