Professional Practise – CostingsPosted: February 8, 2017
Todays second professional practise lecture was with Dewi Gray from the Entrepreneurship team about the importance of costings when creating and selling our work to be more successful. I found this lecture very interesting as we are now starting to design our final collections which could have products made alongside so this information is good to know. Below are a few of my notes taken from the lecture which I am refer back to throughout this final major project.
Difficulties of pricing:
- We all have an idea of price when it comes everyday items, however we make assumptions when it comes to our products.
- Work about the amount needed to make back the minimum
Benefits of getting costings right:
- Being paid what your items and your time is worth
- Less stress in the long run
- Helps to build a sustainable career
- Allows us to enhance our creativity.
How to cost our work:
- Set a minimum value for items (Total Material/ No. Units & Hours worked + Total fixed over costs)
- Workout the price that you need to get back in total to break even / a profit
- Interesting book to look at – Art Rules, by Paul Klein
- E.g Think that if a piece is worth £3000 you probably won’t find a buyer and don’t want to make a loss so think of other ways to make money – sell 100 limited edition prints?
- Keep receipts through out
- Record all spending – make sure it’s sustainable / add even small items adds up over time
- Make a note of monthly supply costs
- Negotiate with suppliers – ask or trade price (remember don’t ask won’t get)
- Set Calendar dates – review costs, increase prices etc
- What am I worth an Hour? then X1.5 (£15 hr?)
- Work within your limitations
- Should be increasing prices by about 20% year on year to progress and enhance the business / place in the industry
- Document my progress from now so that I don’t look as if I’ve just appeared from nowhere.
- Learn as much as I can from other similar artists / designers and what they’re charging / what sort of items/quality.
What should we look out for?
- Our target market can they afford my items? Where do they live? Where do they shop? What else do they buy? Price they pay? Other people selling similar items?
- Look at other sellers with similar experience, style, medium in the industry
- Ask the customers budget – produce within that price (e.g £15 to print the fabric / embellish)
- Starting now to grow as a business/designers
- Look at competitors (how can I do that and add value?)
- Consider perception and expectation of my products
- Show customer at first glance – should show that they are quality items
- Make sure to make time for regular reviews: pricing, place in market still right for my items?
- Increase value of work – remain current and not fall behind.
Mystery of Value:
- Value increase – e.g first run of prints
- Fear of loss (consumer) – e.g last print left from a run of 100 could charge £40 instead of £10 if the demand is there.
- Think of the value of items overseas – e.g Scandinavia, higher prices so could pay full price for items then mark up and sell
- Add a story to my work – people like to know what items are about, where they re inspired from, processes used – make it personal (use Instagram to show progression)
- Produce work that isn’t for sale? But then sell a limited number of prints? Signed?
Packaging + Branding:
- Consider how I want to brand / display my work – place myself in the market
- If Higher end of market – What are other competitors doing?
- Packaging helps to sell an item and adds value – inexpensive but can raise the price of an item – put something in a box with print?
Most importantly Be Yourself:
- Personalise your website
- Create a creative online presence – Instagram
- Tell my story – something for people to follow