The Sticky Topic of Pricing

Started by ♥♥Tan♥♥, May 25, 2010, 06:17:41 PM

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laurat

I know this is an old thread but one that has made me really think.

How are the 'newbies' who commented originally doing and what advice can they offer now after a few months on?

helbels

Ok, here goes the opening of a bag of worms yet again on pricing.

I've noticed recently on Etsy that UK lampwork in particular is getting priced lower and lower.   I used to see the odd set here and there priced at below £20, but now it seems very common that I see sets offered for £15, £10 or sometimes even less!   

Now, I fully appreciate that it's everyone's free choice what to price their work at, and that some people's work is better quality that others  etc etc - that particular aspect of pricing has been debated to death on here in the past.

But it DOES rather beg the question of how to react in response to this general price lowering I've noticed.  If you stick to your existing prices, there's the risk that people will stop buying your work (because they can get something cheaper just across the page).   But equally I see that if we ALL go around lowering our prices, we'll eventually all undercut each other into non existence... 

Thoughts please chaps and chappesses?  And remember, play nice in your comments please as I know this topic evokes strong feelings!  ;)


Shirley

I have sets at £10 and at £15. They are the right price for the time they took to make.

I'm more concerned about people selling what is, to my mind, poor quality British lampwork at overinflated prices simply because it's British lampwork. Sharp holes, sloppy encasing, wonky shapes.

That's another can of worms. :D
Val Cox Frit - Thai and Bali Silver 

helbels

Indeed Shirley.  I have no issue at all with low price beads, if as you say, it's clear that they are relatively simple.  That's not the kind of bead I mean though - I'm talking about beads that are obviously quite complex in execution.....

Off now to check for wonky encasing and sharp holes  ;) ;D ;D

silkworm

When I mainly made jewellery from bought beads I used Emma's advice and found it worked well, over time I learned what I could afford to pay for beads to end up with pieces which were likely to sell. Now I am making my own beads I am finding it much harder to price - a lot of my tools I bought before I was selling so did not regard them as part of the business, now they are I am not sure how much to add in and there are just so many more variable to build into the equation!

I just read this article and found it interesting - http://greenwood-carving.blogspot.co.uk/2013/06/how-to-price-craft-work-business-advice.html the part about putting your heart and sole into your work really struck a chord!
Mary

Margram

I've noticed the underpricing issue too, Helen - not a lot you can do about it, as far as I can see :-\
Marg x  Etsy Flickr My blog

Barnacle Bay

Quote from: Margram on June 20, 2013, 01:14:46 PM
I've noticed the underpricing issue too, Helen - not a lot you can do about it, as far as I can see :-\

I wonder if sometimes peoples own confidence in there own work initiates underpricing, I'm sure it does play a role, esp when you see all the cheap imported beads being sold for pennies  :-\

Pandanimal

I have just been and lowered all my prices. I haven't sold diddly since Feb. I have tried sales, free postage offers and not a bite.
I don't think there is anything wrong with my beads, in fact, I think some of mine are quite unusual, and I like that! so I guess it has to be the price. There are a lot of us making beads now so competition is tough on us all.

jammie

Yep so many people making beads equals a drop in price generally, same with anything really!

nete

This is indeed a difficult one. Here's my twopen'th for what it's worth. Firstly I get really upset with the word hobbyist. If you are making things to sell, then you should be registered to pay tax. If you choose to reinvest all you profits back into your "Hobby" then this is reflected on your tax return when it shows up as a loss. Nevertheless you are a business unless you are giving the stuff away.

I think we all know how to get round the issue with cheap Asian imports. They are what they are "Cheap"! But should also add in their tag "Nasty".

I am really irritated when people sell and undervalue themselves and their art. This is a skill that takes a great deal of time to learn and is a massive investment in equipment and materials. Don't forget that initial investment which is so easy to do by the time you get good enough to start selling.

Yeah, it's OK to have the odd sale, we all have to pay the bills and yes it's tough out there and this type of thing is an impulse buy. But please keep the faith! This is not papercrafting! This is specialized stuff and should be marketed that way.

Rant over  ::)

jammie

bit of a slur on the old papercrafting there!  ::) ;D

Niki Gough

Quote from: jammie on June 27, 2013, 10:20:05 PM
bit of a slur on the old papercrafting there!  ::) ;D

Lol Jammie that is what I thought :)

Personnally I have just listed my very first set of beads on Etsy/Folksy and am not sure on price but used the formula from the first page I thinkg. I actually spoke to the tax office as I am self employed as a childminder and asked them how it worked with the beads. I was told that unless I expected a profit within the next 1/2 years then it is classed as a hobby and doesn't need to be included on my tax return or need to set up a second account so I haven't. This is just what I was told though.

I have to say I hate the pricing thing as with making Jewellery, lampwork beads and yes cards it is really difficult to price items.
Niki x
N Designs Crafts

Every oops is an aah waiting to happen.

helbels

That's interesting Niki as in the past HMRC haven't really recognised hobbies.  My understanding was that if you sell your beads at all then they expect you to register as self employed for tax,  even if you make a loss.   Maybe the rules have changed recently.

Niki Gough

Not sure if this helps, it is from HMRC website.

VBNB27000 - VAT Business and Non-Business activities: hobbies
People sometimes have hobbies that involve the making of taxable supplies, for example repairing cars or selling stamps. These supplies are not automatically made in the course or furtherance of business. You should apply the business test.

It is unlikely that hobbies which involve a registered person making minimal supplies are business. However, in some cases the person's hobby can lead them to make substantial supplies and may grow to become a business activity. Many successful businesses grow out of a hobby or private interest.

When judging whether a hobby should be seen as a business activity you should consider whether the activity is taxable for income tax purposes. The Income Tax (Trading and Other Income) Act 2005, Part 2, Chapter 2, Section 5 states that:

Income tax is charged on the profits of a trade, profession or vocation.

This is a similar provision to the VAT definition of business in VAT Act 1994 Section 94(1) which includes "any trade, profession or vocation".

VIT VAT Input Tax VIT44000 gives guidance on situations where people feel that tax paid on the costs of their hobbies may have been incurred to promote or advertise their business.
Niki x
N Designs Crafts

Every oops is an aah waiting to happen.

JKC

I phoned up and was told that I had to fill out a tax return, even if I made no profit, that was only last year.  Janet