On the 25th April we had a session on costing.
This is a massive area, and every one calculates their prices differently.
Here is one way:
Cost Price
* Materials (cost of)
* Over heads (electricity, tools, insurance, etc)
*Labour (your time, remember to factor in design time - cost per hour).
These elements should make up your cost price.
To get your retail price times your cost price by 2. Most galleries will times by 2.5 or even by 3.
It is worth considering keeping your prices even, fluctuate your cost price to keep these level.
There are ways of cutting costs with your overheads such as, sharing space; bulk buying; outsourcing; recycling and selling locally.
Working to Commissions
Things to consider when working to commission.
* Charge and design fee;
* Keep to one design, otherwise you could run the risk of getting knotted up;
* Do you want to take the job;
* what are the deadlines;
* Compromise;
* Agree a design fee, this means that you get paid for your design even if the client decides not to continue, this would usually be 10% of your overall fee.
* If it is a particularly big or long project, interim payments are a good idea to keep you going.
* Contracts - these protect both you and the client.
* Send emails after phone calls, just to clarify every thing in writing.
This was a very interesting seminar on costings and commissions. The main thing I took away from this session is to be confident about pricing your work. It is easy to under price when starting out and this could mean that potential customers lose confidence in your work and as yourself as a maker.
I also found it interesting to hear what it is like to work to commission from some one whose making process is based solely around this.
I still haven't made up my mind about working to commissions, but I found it very useful to know what the main points to consider are.
