Crafty Craft Sale

Markdown before Markup

Establishing a fair price for a crocheted dress

A lady wanted to purchase a beautiful hand-crocheted dress and spotted a crafter who did absolutely amazing work, but she charged a good price too. The lady thought that her price was way too high, so she approached the crocheter and in quite a brusque fashion stated, “I want to buy a dress from you, but I think you charge too much.”

The crafter was a little taken aback but replied, “Ok, how much do you think I should charge?”
The lady replied, “I think you should charge ‘X’ much, because the yarn will cost this much, and ribbons this much, and buttons this much. I even factored in the price of scissors.”

The final price the lady had calculated was a lot cheaper than the crafter’s original price, but she said, “Ok, deal. You will get your dress in a week.”

The customer was very pleased with herself and couldn’t resist telling all her friends what a fabulous deal she had negotiated, and how smart she was, and that in a week she will have her gorgeous crocheted dress.

A week later her parcel arrived in a lovely packaged box. She opens it and inside is yarn, ribbons, buttons and even scissors. Angrily she contacts the crafter asking, “How could you do this to me? I asked you for a dress and you sent me a box of yard, ribbon, buttons and scissors?”

The crafter quietly replies, “My dear, you got exactly what you paid for. If you think there is something missing, you need to pay for it.”

Moral of the story: when you buy handmade you are not just buying the materials - you are buying the crafter’s time, effort, love, and dedication that goes into making your items.

Cost-plus pricing - how to calculate
markup cost for handmade crafts

see also   Business,  Financial  &  Shopping  Sections


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