Calculating revenue of your crafts | Wendy Vazquez | Skillshare

Calculating revenue of your crafts

Wendy Vazquez, Business and blogging for creatives

Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
5 Lessons (11m)
    • 1. Intro

      1:49
    • 2. The Materials

      4:46
    • 3. The Real Price

      2:07
    • 4. Final Tips

      1:32
    • 5. The Project

      0:35

About This Class

Hi there! 

If you are starting your crafting business, and you don't know how to estimate the cost and the price of the product, I will help you to do it through an excel chart. You don´t need to be an expert, I will give you the formulas and the chart, and you will learn how to use it in your favor. 

If you don´t have Excel, don't worry! You can use Google Docs also. Take the advantage of start selling your crafts!

you can download the chart from the Class Project.

See you at class!

Transcripts

1. Intro: Hi, everyone. My name is Willie. I'm a graphic designer and a blogger, and I would like you to experience the advantage off calculating revenue off your craps so you can start your crafting business. If you are a crafter or an artist and want to sell your creations, it's important that the price Jew assigned to your stuff it's agreeable into the work that you do on the materials that you use. If it's not, then even if you tink, you're earning revenue because you're charging your crafts at the end. The lack of planning will make those price for too low, and you will not be able to sustain your business or too high, and you won't be able to explain the client the cost. Crafting, designing on all the tests that immobile creation off things that cannot be measurable often makes the client skeptical about the price he or she must pay. Why is that? Because we cannot prove that it took us a lot of work and effort to reach the final point. The client will not see all the time we using sketching, contriving on, then manufacturing the products he will see on Lee, the end of the story. If you are sure about the price, the client will accept it because you will be able to defend it and will be more trustworthy into the ice of the client because he will be sure that, you know. What are you doing on What are you talking about? For this last, we're going to need an Excel file or Google looks in their ways. Okay. You don't need to be an expert. You can download the file in black from above on Lee with the formulas, and in less than 12 minutes, you will learn how to use it. Let's begin. 2. The Materials: if you have more than one product, I recommend you to start with something that has only two or three materials for practice and then keep going with the most complex stuff. Ready? Okay, that's up in the file. We will see two charts went up and one about I asked for something simple of your work. So I'm going to do the same with my creations, and I will use a cape that I need before it has only one kind of jar, no extra ornaments or any other kind of material. So at the end, in materials and equipment, I only use this jaar They cruise ship Caesars Kraft paper or the packing double sided tape for the packing stamp for the packing and ink step for the packing. If you see I'm including the materials off the product unpacking, why is that? If you manufacturer packing, then it must be included in the price we're going to give to the client. Now that we have all the materials that we used, we're going to start the cost far. Why is it called cost because is what you're paying either in time or money for the final product first, we're going to analyze the money. For example, I used three stains off turn to make the cape. Each stain cost me $2. So in concept, I will write skein after. Now that we have that, we're going to fail the unit price box with the coast off just one, just. Well, as I said before, each skein cost me $2 so I'm going to type it now we can see two columns. The 1st 1 says quantity on the 2nd 1 wides, times abuse. I used tree skeins. So in quantity, I'm going to point out if you see in the total, it will mark the coast off the three darts. Same in the coast, permanent. In my case, it was the only material I used. But we have other stuff on. Those are the tools that we use to make our creations on. Believe it or not, you have to add them to the price you're trying to reach. In my case, one of the tools was the crow shit. As a tool, it could be lost, stolen or even broken. So we need to think in events this part could be more subjective because it totally depends under experience. What is the first tool that you will, right? Do you remember how much it cost? How many times do you think you will use it before you need a new one? Or it was cheap. And you need another one, like, more expensive. I write the concept, grow shit on the cost. This time I'm talking about the two. We're not going to use the quantity box, but the times of use. So in my case, how many times have I used a cruise ship before? I need a new one. I think it will be like 40 times, so I type it. As you can see, the total box remains the same. But the coast bourbon change. It means that I will not charge an entire tool toe. One client. Obviously it will not be fair because the price will go to the clouds without reason. Instead, I will charge on Lee a little part of it. Now we're going to feel each row with the information in order to know the material cost. You compose the video if you need. When we finish that part, we will see two boxes about the first chart one marking the total on one marking the percent contribution off the materials. As I said before, maybe your creation is more beautiful and useful, but we need to establish profit margins for us. It is, after all, a starting business. So the percent contribution material will help us to increase the quality off what we use on give every time better. I'm very proud to our clients. This is my material chart part off the cape. How is yours? Feel free to ask anything if you need to. Now let's keep going. Where? On Lee help the way to the end. 3. The Real Price: Once we have established the materials, cost is necessary to have something important, which is the price off our labor. Our in the below chart, you can see two things that for me are essential whenever somebody hires me time. And Gus, why is that? The rial coast off every crafting on assignment service is time. So we are investing time in it. Then we must put a price to that. If we see it from another way, we're really selling timeto our customers time. They can't or don't want to spend learning, investigating on creating what they want. This is a really cost for us on the main point off the price. So how much do you want to run per hour? My advice is keep it real. Don't overcharge the part how we can do it Well, What I did was check how much lead iron per hour in my last job and then added 1/3 part off the total. For example, if in my last job I earned $6 per hour, I do this six plus two equals to eight. So I type a dollars that that's not all for the Cape. I spent like six hours working. So in the quantity books, I'd write it. Finally, the Gaspar it has to appear, but doesn't mean a lot of difference in the price because the same travel do did. To buy the stuff for the Cape will be also for the materials for other clients. So I use a symbolic price there depending on that. If I did one travel for more than two customers, I put $2. If the travel waas just for one customer, I write $5 In my country, the gas is kind of expensive. Now we can see the total of moment that we can assign a surprise to our creation ready to upload the product. 4. Final Tips: Now I want to add our final tips for you in order to make better and better the Aston Nation off the price if the crafts you are going to sell are more than one. I mean, if you are making stuff in bulk, then you have to take all the use materials under spending time to make one file. I mean, if you may, favorite flowers on your client asked for 50. You don't do the file for just one or one file for each flower. You take the 50 in one file because in this case, the time spend it is divided in every flower. So I recommend you that if it's the same thing and the same purchase, then all goes into one complete chart. Try to leave at least the retail price when you publish your product. A client that sees that Do Hesitate is a lost client. Remember that you are selling your time and they d off. Crafting is to sell emotions, too, So if you think you want to raise your prices, just analyse emotions you create in your clients. If those air positive, then it's time to go a little higher. Don't be afraid off that and finally, is not the only way to assign prices. But it's helpful when you are starting your crafting business and want to know how to do it . You can stick to it when you have more time on other more labels if needed. For example, if you are renting an extra space, are spoke to work. 5. The Project: through the video, you were able to do a little chart for practice so you can see the little details off every craft you want to sell. For the final project, I recommend you to watch the class and start making the chart off your principal product that you want to sell the most and see if you are giving it away with the ideal price when you finish uploaded, because that will help you to receive comments on ideas that you can implement in your price analysis. Be brave and start selling. See your next class.