As a beginner I find that it takes me a while to complete projects. Is following the formulas
(Materials+Time Spent)X2=Wholesale Price
(Materials+Time Spent)X4=Retail Price
going to work for me? It seems like my prices are too high using these formulas even at the wholesale price. I feel like costumers will probably not buy at these price points from me...especially when I see similar items on Etsy for way cheaper. Any thoughts out there?
If I could add to this interesting thread...a smart man I once worked for pointed out to me that the best pricing for a given product is whatever the market will bear. If your cost to produce the product is sufficiently lower than what the market will bear, then great...you can make a nice profit. If your cost (material plus how much you value your time) doesn't allow you to make a profit, that would not be a great thing to make (if profit is the goal). That said, I can definitely appreciate the temptation to look for a formula like those shared in this thread to try to estimate what the market will bear. But I suspect there are far too many variables impacting what you could sell your goods for (your photography skills, your social influence, your choice of design aesthetic, etc.) for any formula to be very accurate.
I haven't yet begun selling any of the stuff I make yet, but I'm looking more at the class, quality and (subjective) desirability of products I'm particularly fond of and trying to use more of a competitive analysis like that to help me set pricing.