Pricing #1: Pricing

There are so many factors to take into consideration that it can be daunting when you look at them. i always apreciate comments in this area because it gives me a better feel for the process.

thanks

-- Hope Never fails

If this is to be a full time business, you have to change your thinking about how much per hour your time is worth. You HAVE to look at how much you will make on a consistent basis.

Example-

If I need to make $24,000 per year, it breaks down like this.

I need 461.54 per week
I need 11.53 per hour

This assumes 40 hours per week in the shop working. I also have to do marketing, designing, advertising, shopping for materials ,etc. This is all non income generating time, yet I as an employee of my business need to get paid for.

Now I need to figure how much time I will be engaged in income generating work (ie making stuff). If this will only be 25 hours per week, I now need to charge 18.50 per hour, but I need to generate 25 hours every week.

Granted, some weeks will be very busy and some will not, but your labor fee needs to come from the big picture, not just a per job basis.

Your marketing and advertising need to generate enough income time to carry your business.

Now you have to see if your market will support this cost.

My point to all this, I guess is to try to get out of the hourly rate idea. I try to think of how to generate the weekly/monthly/annual amount whether it be 1 piece or many pieces.

-- Tim, trying to come up with something cool to say here!

Any one can appreciate a formula for success, My thinking process might be off by a margin but trough the years I have discovered that you can crunch number all day long till your fingers bleed to figure out what your worth per hour, what you would like to earn annually etc. If you can’t connect with potential clients you are a cooked goose. I make my business about my clients never bout the money, building positive relationships with people will take you a long way. The money will follow. The process is different for every one, its a personal gurney in my opinion. Your level of success will depend on your inner circle and connections in your your field of expertise and surrounding community. For years I worked for next to nothing just to make connections, today I name my price, If you do what you love and you can conduct your self with honesty and integrity at all cost you come out a winner.
But again it’s just my opinion, just an immigrant living the American Dream

-- always something new - www.azzanarts.com

Attie,

I agree with you completely. I didn’t mean to imply that these were hard and fast rules.

You have achieved what many are aiming for by using a different method. I have also worked for next to nothing in an attempt to get closer to my goals.

My thought was more to the idea that one not get wrapped up in how much “per hour” they’re getting but to see a bigger picture, as you did. It just seems so many get tied into how much per hour without understanding where that number comes from or how to deviate away from it. Somewhere in there is a price that will work for both you and your client and make everybody happy.

By the way, I really enjoyed your web site.

-- Tim, trying to come up with something cool to say here!

I so agree with you on this point, The day I stopped to chase the all mighty dollar is the day things started to get better for me. Sorry if I misinterpreted your comment.
Thanks for taking the time to check out my website
GB.

-- always something new - www.azzanarts.com