Pricing Homemade Cards For A Profit!

Pricing homemade cards is more than a number game. You want to price your cards to sell for a profit. Do take time and effort to study this pricing page to ensure a good profit for your home business.


Pricing homemade cards - cardstock, envelopes, etcSupplies for Card Making

How much should you charge? What is the right price for a handcrafted card? What percentage should you mark up your prices?

These are questions that every card making business entrepreneur would ask with regard to pricing homemade cards. And this is an area that you need to do some research and a fair bit of calculation.

Certain areas that you will need to consider on pricing homemade cards.


Pricing Homemade Cards : 3 Areas To Factor In

1. Card Making Tools

Trimmer, laminating machine, computer, printer, rubber stamps, brayer, etc. These are also to be included in pricing homemade cards. So when you purchase any card making tools or supplies, do keep a record of date of purchase and the price you paid for it.

So let's say that you bought a printer at $200 and you want to amortize it over a period of 3 years.

Definition: amortize - To write off an expenditure for office equipment by prorating over a certain period.

Calculation: $200 divided by 3 years divided by 12 months = $5.60 per month


2. Card Making Supplies

The cost incurred to make that particular design card depends on the card making supplies you choose.

The particular kind of cardstock, graphics, embellishments, ink, etc that you used to make that particular card. These are what is known as the raw materials needed to manufacture a product. Again this is important in pricing homemade cards and so records keeping is important.

Pricing homemade cards tips : To make a good profit margin, you will need to know where to source for cheaper raw materials.


3. Labour Cost

Pricing homemade cards include adding in your labour time.

This is the time and labour you put into making that particular card. How much would you pay yourself for an hour of work? If you are not sure, ask yourself how much would you pay for someone to come in and help you make that card. And how much time would you need to make that particular card.

Note : With more practice and experience, you will find that you are able to accomplish more in lesser time.

So considering the above 3 factors, you would calculate the cost price of each card accordingly.


Calculating The Cost of Card

For example, in one month you made 800 greeting cards - (different designs but around the same cost)

  1. Labour Cost per month = $500
  2. Card Making supplies per month = $200
  3. Card Making Tools per month = $100

Total = $800

Therefore cost per card = $800 divided by 800 cards produced per month = $1.00

Note: You can have 2 to 3 different ranges of cards. Therefore 2 or 3 price range.


Understanding The Whole System Of Pricing Homemade Cards

  • Who are your market?
  • Who are the people who you are targeting to sell your cards?
  • What are their earning and spending capacities?
  • Would they buy high range cards?
  • Or should you make lower cost cards so that you can bring down the Retail Price of your handmade cards.

Definition : Retail Price - The price that the consumer pay for your card.

You will need to study the area that you are selling your card. What are the kind of cards being sold in the market within this region? What are the price range? What price range would you think your card is at?

What arrangement would you make with the shop owner? Are you consigning your cards (Consignment Stock) or are you selling outright (Outright Sale) to the shop.


Consignment Stock

Consideration to take note of if you are consigning your cards

  1. Damaged Stock - After staying on the shelf for a while, there will be damaged cards especially from handling by consumers.
  2. Free Showcase or display unit - Do you need to provide these to the shop?
  3. Promotion - Year end sale or other promotional events. Usually, the discount is from 10% to 20% so this will mean less profit to you.

Shop Owner's Percentage

What percentage are you giving to the shop? Usually you give the shop 30% to 40%.

Calculation of Shop Owner's Percentage

Is this 30% to 40% to be calculated based on the Wholesale List Price (price you give to the shop) or the Retail Recommended Sale Price (R.R.S.P.

For example:

Let's say that your cost is $1.00 and your R.R.S.P. is $4.90 and the percentage to be given to the shop is 30%

If based on your R.R.S.P. :

$4.90 multiplied by 30% = $1.47

Your price to the shop would be $3.43 ($4.90 minus $1.47)

If based on Wholesale List Price of $3.43:

$3.43 multiplied by 30% = $1.03.

Retail Sale Price would be $4.46 ($3.43 plus $1.03)

Notice the difference in the Retail Price of 0.44 cents.

Outright Sale - Just mark up 100% from the cost of your finished card.

Pluses of Outright Sale:

  • No returns of cards. Since the sale is completed, you know that those cards will not be returned to you even if the shop could not sell them.
  • Or exchange at same value - if a prior arrangement is made between you and the shop to exchange unsold cards at a certain period for cards at the same value.
  • Money first - you collect your payment so there would be no cash flow problem which is very important to any business operation.
  • Low risk - sale completed, no damaged stock, etc.
  • Less hassle - no inventory of stock, providing display unit, sale discount, etc.

Actually, pricing greeting cards is not so difficult if you understand the whole system of pricing homemade cards.

So with the above said, I hope that this pricing homemade cards page will be helpful to you in your journey to a successful homebased business.


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