Blog
  Back to Posts

Selling Handmade Greeting Cards - Part 5 - Smart Pricing

Cardboard Greeting Card Display Stand"How much should I sell my cards for?” – set the price too low and you won’t make a profit – set the price too high and you’ll undoubtedly lose sales.

Calculate how much your cards cost to make. There will be a number of factors to consider, but some of your more obvious costs will be:

- Supplies – such as card, paper, glue, embellishments, envelopes.
- Equipment – have you purchased any start up equipment to make or display your cards?
- Labour – which should cover not just the time spent making cards but also time spent on the administration of your venture.
- Postage and packing – stamps, boxes, bags and packing materials.
- Overheads – such as electricity and travel costs.

Once you have established your costs you can start to work out a selling price.

Pricing strategy is a key element and comparison market research into the price of handmade cards in your area, or online, is time well spent. Remember that if you sell your cards wholesale the price will be lower than if you sell retail. Retailers are typically looking to mark up by about 100% plus VAT. Selling to retailers on a consignment basis, whereby you own, display and replenish the stock on a regular basis and only charge for cards sold is often a good route into outlets. However, if you bundle a large number of cards to sell with a free display stand this is a good incentive for the retailer and a better proposition for your cash flow. If you are looking to employ an agent to market your cards they would expect a commission, typically in the region of 15%, similar to third party websites such as eBay and Amazon.

At the end of the day your profit has to be sufficient to be worth getting out of bed for!

Created On  11 May 2011 14:31  -  Permalink

Comments

No comments available

Leave a Comment

Comments are moderated, and will not appear on this blog until the author has approved them.
Name and email address are required. The email address will not be displayed with the comment.
Your comment
Name *
Email *
Website URL