If you are a gifted crafter, you might consider making a profit from your talent by selling your homemade kits, or you may already be trying to sell them and not having much success. It can be difficult to know how much to charge, so here we’ll take a look at what you need to think about.
The Price is Right
The price range of your craft kits depends on a number of things, including the cost of materials, time spent assembling the kit, what’s included, packaging and the type of kit. You don’t want to be spending hours making up kits to just break even – it’s important that you are making a profit.
If the price is too low, you will make little to no profit and potential customers may think your products are low in value. But price your kits too high and there’s a risk that you won’t sell enough as they will appear overpriced. You could have a look at crochet kits and other craft kits from suppliers such as Wool Couture to get some idea.
Working out Costs
Be realistic about what sort of profit you need to make to make the business worthwhile. Your profit is the income generated after you’ve deducted all your expenses. At the start, you may have to settle for a lower profit margin while you get off the ground, but once you’ve sold a few, your margin should go up. And if you buy in bulk and your costs are reduced, you should see profits rise. Ideally, you want a 50-70% profit after a few months.
If you are struggling to do the maths, you could use an online budget calculator and input your figures to work out your potential profit. Don’t forget to include shipping costs and your labour costs.
