The Pricing Dilemma for Handmade Stores

I think the hardest balance for a business is pricing.  You don't want to be too high, but yet you need to make a profit to stay in business.  This is a hard one for someone like me who looks for a bargain.  Lets face it being a stay at home mom comes with its rewards, but with no income on your part you look for deals where you can find them.

Don't get me wrong making clothing, headbands, and pajamas, is a fun hobby to me.  My biggest enjoyment of making something is seeing the excitement on someone's face that truly loves that item.  But when you start the overhead of a business, you do have to make a profit to keep it going.

Keep in mind handmade items should come at a little higher price.  We aren't mega superstores with buying power and take the time to specially make each item.  We can't compete with the big box stores.  What we can offer is a special item that can be customized or changed for the customer that every detail is paid attention to.  Most of all you can provide great customer service that isn't always a top priority at larger stores.

Since I started my online business I have had several people comment that my prices are too high, which always makes you feel horrible.  After a few comments I went and reviewed what my costs were to make my inventory.  After figuring in almost 7% in fees associated with a purchase that deals with my listing site and credit card payment, it wouldn't be worth making my items for a lower price.  That doesn't even take into effect that I eat a little of my shipping costs to stay competitive, business cards, stickers, packing supplies, etc.

I am new to this, but my advice would be to anyone starting any kind of business is put it all on paper.  Make sure you are making a fair margin to cover overhead that you aren't figuring into your prices.  Look at the worst possible situation for shipping and associated fees.  As long as you are educated and are making a fair margin for you and the customer you have a chance of making it as a business owner.  Always keep in mind someone is going to complain about pricing, but if you are being fair about your pricing listening could put you out of business.

Keep in mind, I am by no means an expert.  As I come across topics as a mom and new online business owner, I will share them.  Some days may be funny, others may be serious.  Give me feedback if you have something great to share.  We can all learn from each other!

Keep Anne Maddox Boutique in mind for Valentine's Day and Birthday Presents!