Weekly-ish notes on navigating big change

pricing crafts

How to make more money (with math)

How to make more money (with math)

One of the most-asked about topics in my inbox is money: what to charge, how to make more, how to thrive.

Last week in my free Q+A, Beth asked:

“How do I increase my rate of pay? How do I make more for every hour I work?”

The simple answer is: You change your numbers. Usually, you change your prices. Or it might be that you need to change your expenses. Or you change your efficiency.
You see, there's no easy answer I can give you…but it's very simple to find your own answer.

Do the Math


The math will show you how much your item costs, how much you can charge for it, and how many you need to sell in order to be profitable and in order to make what you want to make.

Instead, I talk to many makers who have set their prices randomly. They change their prices willy-nilly. They base it on other people, “the market,” or what a stranger said to them one time. They exclaim, “I couldn't charge a fair price for all this!” They feel frustrated and confused, because they're just guessing.

So stop guessing. Do the math.

The math is not that hard, and I've collected all of it for you in one place: Pricing 101. I've totally refreshed this popular class with 2 recorded audio lessons: the first with 3 equations for finding your right price and the second on how to actually get the price you deserve.

The class is only available in two places: As a bonus to Pay Yourself, and in the Starship Library.
Why? Because knowing the right price isn't enough. You absolutely need to set your price…but then you need to test it in the real world of your business. You need to know your Break-Even point, your production capacity, and your monetary goals. And that's what you'll do in Pay Yourself.

So grab Pricing 101 (2 hour-long audio lessons + transcripts + apply-it-yourself worksheets) with Pay Yourself right here.



Questions, Answered

The Pricing class is today!

Before it starts, I wanted to answer some questions ya'll have asked me about it.

I can't make the call!

Totally ok! Everyone, whether they make the live call or not will get a recording of the call on Tuesday morning. If you buy the Fancy Pants Version, you'll also get a written summary of the entire call.

Will you hold this class again?

Probably not.
For one thing, it's less exciting the second time. Part of what I love about these live classes is the energy on the phone and the challenge of being prepared to answer everyone's questions. A second class just doesn't have that same appeal.

But I am likely to talk to pricing again. This class has triggered a lot of questions that are tangential to pricing:

  • How do I pay myself?
  • How do I organize my time?
  • Do you track your hours? How?

So, yes, I will be covering all these issues in a future class, or maybe a series of classes. I'm brainstorming/plotting a sort of bi-weekly class where we call in for a lesson, then go off and work on what learned about, followed by another call (or Twitter check-in) where we share what we learned. I'm thinking this sort of structure would allow us to really dive into all the tangential questions that come up. (If you're interested in that, shoot me an email, or leave a comment with your ideas)

Where did you learn about pricing?

Mostly, experience.  1 year in a scrapbook store, 2 years managing a paint-your-own pottery studio, 2 years in yarn shops (in all of these jobs I worked directly with the customers and hear their reactions to prices). 4 years of selling my handmade stuff and nearly a year of doing it as my family's main source of income.
The second source is conversations. Conversations at craft shows, at fiber festivals, over coffee and on Twitter. With crafters, shop owners, gallery owners and some very smart retired crafters.

But I've also read a looot. I have an extensive bibliography for the class. My students will receive it as a fancy PDF with an explanation of what I love from each resource.

But what about all of you who have more time than money? And want to read and sysnthesize and experiment? For you, I want to share the bibliography and I encourage you to do your own research and come to your own conclusions:


(linked to their IndieBound page, buy indie!)

The Boss of You
Handmade Marketplace
Crafting for Dollars


Etsy's  series on the Art of Pricing.
Havi's The Art and Science of Pricing .

Any more questions about the class?

Leave them in the comments and I'll answer them until the class starts at 3p ET.