Pricing Your Product: Product Costing Model
Product pricing is both art and science. The science, or quantifiable part, is how much your products cost to make. Craft NI has put together a template, with worked example, to help you work this out.
The PRODUCT COSTING MODEL is an excel worksheet that helps you to calculate in a straightforward way how much it costs you to make each product. Add material, production and labour costs into the yellow cells of the spreadsheet and it is set up to calculate the rest.
The spreadsheet will also help you calculate how much profit (or not) you are making per product.
See tabs on the bottom left of the worksheet to move between the template and the worked example.
Having established the level of cost, '15 Different Ways to Price Your Products and Services' by the Design Trust gives a good overview on how to approach the art of price setting.
The Product Costing Model is produced by Craft NI. We acknowledge the support of Gemma Millen Ceramics in its development.
Image credit Simon Mills
2014, Education, Skills & Training