Designer Prices - Business
Designer World - Fashion, Graphic, Artists, etc.
People don't want to pay the price - to have something made for them. They want the product but don't want to pay up the fees.
In fashion, most people don't realize it takes more than just sewing an item together. Artists who are illustrators - have to use various art supplies to make their paintings, etc. Supplies cost money, plus time = Labor, Packaging and Shipping fees, etc.
As, I talk to Fashion Designers - "Price" is the one thing that's the problem. People don't want to pay. They get request to make items for people/boutiques/stores, etc. BUT once the prospective client gets the price. They don't want to pay it. They feel it's too expensive. I can understand their reasoning but as a designer/entrepreneur - it's not fair to not make a profit. The difference in purchasing from wholesale and getting ready to make items - they are produced by a manufacturing company and in large amounts...therefore, their prices are lower.
I was tallying up how much to charge a person for an outfit. The supplies alone cost $50. Minus some supplies needed like thread, glue, etc. So, the supplies is $50, add labor at a rate of $15/hr x 4 hours = $60 for labor, plus packaging $10 and shipping fee $15. That's $135 for that one outfit. My profit would only be $60 (labor fee.)
If this was one's only occupation. One would have to sell 10 outfits to make a profit of $600 a week. Which would be $2,400 a month at that rate. The expenses for a week would be $750 and $3,000 a month. The expenses outweighs the profit. Ones profit should be more than their expenses - to be successful.
In being a designer, you don't have any benefits - like working for a company. You have to pay for your benefits [Health Insurance, etc.] yourself. It's hard to do that on a small salary. So, this is the reason. You see a lot of Artists/Designers/Musicians in general have more than one thing going on. To generate income, from many different places.
As designers/Entrepreneurs, we have to make a profit in order to be able to survive. No profit, you might as well don't do it. So, don't short yourself. Doing things for free or too cheap will cause you financial hardships. Breakdown the expenses for your clients, just like the mechanics do when you get your vehicle fix. Show them a printout of all the expenses, etc. So, they see exactly why the price is what it is.
Wishing you the best in your business ventures!