Figuring out how to price one's work can be a daunting process because of the many, many things to consider. Feelings and philosophy often factor in for many people. For example, some artists feel that the money angle takes away from the artistic integrity of their work. Other artists feel like working unfettered from the trappings of any sort of business work helps their creativity remain free. These philosophies can take many guises: “I just want to make enough money so I can keep buying supplies;” “I could never charge what this is really worth, and expect that someone would buy it at that price;” “I'm just a hobbyist; I don't really need to make money;” “I do this for fun and relaxation, and if I worried about the business angle, all the fun would be sucked right out of it.” But how many times have I also heard someone say they wished they could make a living doing their art? Whenever I hear this statement, I feel a little sad for the person. Are they really doing what they were put on the earth to do? How powerful would we all be collectively if more of us lived our lives using the gifts the creator gave us to our very best ability? Would we treat each other a little nicer because we were happier? Would the cultural “affluenza” so prevalent, so damaging to the planet be alleviated? Would more people feeding their creativity be turned into creative problem solving for the world's increasingly (seemingly!) complex problems? Would the world be a better place, ultimately?
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I
am first and foremost an artist, and I think I can be most helpful in
discussing pricing by doing it from that point-of-view. Entire
college degrees in business and pricing exist. I have not had any of
that category of formal education, and my pricing process comes from
my own research and experience – nomenclature may suffer from this
point on if your specialty is business! But if you're an artist,
especially a glass bead artist, most of this will be somewhere on
your radar.
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How
to figure out what belongs in the fixed costs category and what
belongs in the hourly rate category, and why bother? Well, it's good
to bother because it makes the difference between profitable and
breaking even, or heaven forbid, operating in the red. And just to
define what profitable means to me: it means I've made enough money
to pay my salary that pays my personal bills such as the mortgage,
the groceries, the maintenance on my car, the doctor bill, new
glasses at the optometrist, etc. Profitable does not mean “in the
black” by a few bucks – that's closer to “breaking even.”
Profitable means you are in the black to the tune of making a living
and paying your bills – business bills AND personal bills.
Profitable means you have enough to live on. And it doesn't really
matter if you are lampworking as a hobby or as a business. Profitable
is profitable.
Things to consider when pricing your beads ...
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I also have the equipment I use to make
the beads: torch, kiln and digital controller, oxycon, regulators,
propane tanks, hoses, tools, mandrels. I also pay business property
tax on this stuff.
I also have the raw materials from
which I make the beads, and I have the tools and equipment and
materials to finish the beads after I've made them. Business property
tax is a factor on some of this.
Furniture, equipment, tools, cars all
have a lifespan and need to be maintained and replaced from
time-to-time. I need to be profitable enough to buy a new car when
the time comes, or replace an out-dated computer that's crashed, or
replace the relay in the kiln. On and on. If any one of these things
breaks down I am out of business until the situation is rectified.
It's also advantageous to be a good citizen – pay the taxes on your
profits, like business property taxes, and income taxes,
self-employment taxes and so on. Then you can get a car or house loan
when you need one, your credit report looks good if you're trying to
rent a space, and you contribute to your own social security.
Each studio is
unique, but there is commonality: you must calculate your indirect
(non-billable) operating costs and then factor those in ON TOP of
your hourly studio rate. It's easy to ignore the many, many items
within this category in part or in whole when pricing one's work. Too
often pricing is based on what the person doing the pricing perceives
as “what the market will bear” with the idea that the she will
raise her prices once she gets business. My feeling is that you will
get exactly what you aim for. People who purchase based on low prices
only will NOT become loyal customers when you raise your prices; they
will shop around for someone else with prices lower than yours. And
if you are one of those folks presenting the argument that business
stuff like coming up with prices sucks the life right out of your
creative soul, try being unable to sell your work at rock bottom
prices because that's the lowest common denominator of what “the
market will bear” and see if that gives you a boost in your
creativity. Creating is about balance, and in my opinion, if you want
to be successful, one foot needs to remain in the real world.
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The internet is a great place to find specific information that will help you out – start by searching “overhead vs. hourly costs” and that will get you started.
A
final and maybe most important consideration in pricing and cost
might fall under the category, “your money or your life.” By this
I mean that our bodies, our lives are finite as well, and I'm not
getting any younger for sure. For example, lampworkers, especially
beadmakers are particularly vulnerable to several repetitive motion
injuries, not limited to carpel tunnel. Do you really want to spend
the commodity of your finite body and health underselling your beads
at a loss because you don't want to deal with the realistic work of
figuring out accurate pricing? What is the cost of that on your creative psyche? Do you want to race for the top or
race for the bottom? Harder to race for the top, but fewer people
there to compete with. Again I say, you get what you aim for. I hope
to be beadmaking or making stuff for a couple more decades at least, but I can see
that I'm not getting out of this alive so my goal is to be able to
keep at it for as long as possible. Being paid fairly for my work, exchanging money for my life fairly goes a long way toward my longevity.