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Pricing #1: Pricing

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Blog entry by Attie Jonker posted 1810 days ago 944 reads 1 time favorited 5 comments Add to Favorites Watch
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Dear fellow Craftsman
I have noticed that there are a lot of guys that have a hard time pricing their work. Don’t worry you all, it’s part of the growing pains of any craftsman, we have all been there at one point or another. Just keep testing the market you will find your way.
I have a friend that for years struggled to make ends meet, he was working his buns of to scrape buy. One day I asked him how much do you charge? $15.00 an hour her replied. That was the most insane thing I have heard in a long time, I could not even hire labor for that kind of money and here was this hard working guy prostituting him self out. In the end of the day it had nothing to do with the market but what he tough his time was worth. Now I suppose it can also work on the flip side, don’t think to highly of your self and charge an arm and a leg start on the low end and slowly test the grounds as you build your cliental.

Seeing all the discussions on pricing made me realize that I don’t show any pricing on my website
www.azzanarts.com
It really hit home for me when I was doing product research the other day and become frustrated by so many websites that showed no pricing on their products. Who wants to take the time to sit down and call just to find out how much an item costs? I hate getting on the phone and having to sit trough automated programs. Then a light bulb went on and I realized I have one of those websites.

So I spend a few hours fixing things and priced my previous projects. at least people can get an idea if hey can afford my time.
Sincerely
Attie Jonker

-- always something new - www.azzanarts.com



5 comments so far

View Mario's profile

Mario

902 posts in 2654 days


#1 posted 1810 days ago

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

View Tim Marko's profile

Tim Marko

41 posts in 2392 days


#2 posted 1810 days ago

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!

View Attie Jonker's profile

Attie Jonker

10 posts in 1900 days


#3 posted 1810 days ago

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

View Tim Marko's profile

Tim Marko

41 posts in 2392 days


#4 posted 1810 days ago

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!

View Attie Jonker's profile

Attie Jonker

10 posts in 1900 days


#5 posted 1810 days ago

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

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