I've had to raise my wunderlust prices again! I'm also slowly realizing that it's impossible for me to continue offering my products at wholesale, unless I hike my prices even higher or cut my production time in half.
Working on Nice Package for the past month has been an eyeopener for me - Ez and I have quickly adapted to what we refer to as "check the document", recently nicknamed "spready". One thing that I can thank corporate America for is my love/hate relationship with spreadsheets (Excel or in our case google docs spreadsheet). Spready is a spreadsheet that I created, it tracks all of our ideas (good and bad) and lets us know whether we can go ahead and produce the item at a decent return. It tracks things like our total cost of investment (supplies + labor) and by figuring out the cost of producing one unit we're able to play with different pricing situations to figure out the balance between making money and what we think our market can bear. Don't forget to consider Paypal, Etsy fees and other marketing fees when figuring out your markup %. I think lots of creatives out there (us included) are so busy dreaming up the next big thing or have this how-can-we-make-this-even-cuter-so-our-customers-go-ape-shit mentality, but then fall short in analyzing the actual time that goes into cute-output. Spready is sort of that annoying finance guy in your office that says "NO, absolutely not!". BS (Before Spready) we've honestly had to abort production on several kick-ass ideas that were almost completed after realizing that we'd have to charge an obscene amount of money in order to cover our supplies cost and that's not even including labor.
I'm proud to say that nothing gets produced under our brand unless it's gone through mr. spreads. We certainly learned this the hard way (AND still leaning!). I hope more and more artists/creatives start taking the time to analyze their production process and pricing scheme. Nothing makes me sadder than seeing under-priced items on Etsy and other online markets, not only is it detrimental to the artist/designer but also undervalues the perception of indie products as a whole.
I found this great primer Pricing your Handmade Goods - hope you find it useful as well!
Related Lifeflix posts:
How to: Price your Craft
How to: Retail Pricing