(Please take one moment to think of a dollar amount you would pay for the pencil case pictured above. Ok, you may now continue reading!)
I have had this blog title in my head for months. Handmade is really catching on. I can't remember people valuing handmade more than now. I think the whole Local movement has helped tremendously and I have to say I have browsed the Local Etsy feature more than once to see what people are creating in my neck of the woods.
I have a question for you. If you are currently creating handmade items, what was the reason you started? My reason is simple. I am cheap and I like the challenge of learning new skills. But I really dislike to label myself and my handmade items as cheap. Maybe I should use the term "frugal" or"thrifty".
Take this pencil case for example. The linen had a previous life as a garment. The cotton print was free to me. The zipper, well, I found this one locally for $.10. Not much in the way of material investment right? But how long did it take me to make? How much is my time worth? And if I had to recreate this and had to buy new linen and cotton can I charge a different price per handmade pouch? Should I figure all my material expenses at new material costs?
I timed how long this took me from start to finish. I started this pouch at 12:45 pm on a Saturday afternoon. I cut all the fabric. I pieced the front and back exterior panels. All seams were top-stitched. I even changed the color of the thread once to add a bit of contrast stitching on the linen. I took the extra time to add fabric bits to the ends of the zipper so the pouch had near 90 degree corners. There are a few lost minutes in there when I tried to find my little crochet needle that I use to turn corners, but when it was all said and done the clock on the wall said 1:35pm. Ladies and gentlemen that is 50 minutes. ((pause)) Is that too long? Is it fast?
I was reviewing the time investment with my husband and I expressed frustration is how slow I was. If sewing pouches was my full time job, how could I ever make a living? (Not that I am looking to make sewing a full time job or anything. I just wanted to clarify that.) He responded that making a zipper pouch in under an hour should be a very satisfied crafty project. Hmmm. Maybe so.
Fast or slow, I just used 50 minutes of my life to sew this little pencil case. How much is that worth to you? Should I figure out my hourly wage for my salary job since I have B.S. degree? I proposed this question to the hubby and he said I couldn't use my degree salary as a basis to determine the value of my time since I didn't use my degree education to make this purse. Hurumph! Does anyone have any comments on this statement? I sure did, but I eventually decided to use minimum wage for purposes of this Handmade Experiement. (Even though the local gas station is hiring at over $10/hr.)
Minimum wage for PA as of July 2009 is proposed to be $7.25/hr. 50 min equates to $6.01.
The cost of the raw thrifted materials is a very modest $.45. My time is apparently worth $6.01 at minimum wage. Total cost is $6.46.
Now consider if I had to pay "new" prices for the materials.
Comprable zippers cost $1.69 at JoAnns.
Cotton fabric (designer) is usually around $8.95 (includes shipping).
Linen costs vary greatly but a 40% coupon at JoAnns will get your 100% linen for around $10/yd.
You'll have to excuse me for not showing my work, but if I have used new materials my cost would be around $2.74. (Keep in mind that I did not interface this case since the linen was already interfaced from the garment construction and the cotton was a deco weight fabric.)
And then the business books say to add on markup, which is your profit. I've seen books that say you should raise your prices 50-100% per item. But it all depends on how much profit you need.
So how much would you pay for the zipper pouch above? I would love to hear your thoughts on this topic. Do you have any advise to share when it comes to pricing your handmade items?