Stained Glass Express is ready with wholesale discounts, should you go into business.
Pricing your stained-glass work effectively is crucial for running a successful home-based business. To determine the right price, you need to consider various factors like materials, labor, overhead costs, and profit margin. Here's a general pricing equation you can use:
Calculate the total cost of all materials used in the piece (e.g., glass, solder, copper foil, lead came, flux, patina).
Example: If you use $30 worth of glass and $10 worth of other materials, the total material cost is $40.
Labor Costs:
Estimate the time you spend on each piece and multiply by your hourly wage.
Example: If you spend 5 hours on a piece and want to earn $20 per hour, the labor cost is $100.
Overhead Costs:
These are the indirect costs of running your business, such as utilities, tool wear and tear, packaging, and shipping.
Example: Estimate overhead for the piece at $10.
Profit Margin:
This is your desired profit percentage. A common margin for handmade crafts is 20% to 50%.
Example: If you want a 30% profit margin, this translates to 0.30.
Putting it Together:
Let's use the examples above:
Material Costs: $40
Labor Costs: $100
Overhead Costs: $10
Profit Margin: 30% (0.30)
Price= (40+100+10) ×(1+0.30)
Price=150×1.30=195
Final Price: $195
This equation helps ensure you cover all your costs and earn a fair profit. Adjust your pricing strategy as needed based on customer feedback and market demand.
