Pricing is so hard. A lot depends on what the market will bear. You can come up with a formula that reflects your labor and materials costs, add your over head, etc but if the other potters in your area are selling at a different price, you may not be able to charge what you think you should. My approach ended up being that I would look at the going rates in my area. Then I came up with a formula so that I could be careful to charge consistant prices across my own line of products. So if I came up with a new item, I could plug it into my formula and come up with a price that made sense compared to MY other items. Here is a print out of my pricing.
I used the Filemaker Pro Database App to create this pricing system. I see eyes glazing over, but here’s the explanation of the columns:
WT = the weight of the clay I started with to throw the body of the pot
Base $ per LB = a price per LB I came up with. It goes up with the weight – 1-2 lbs = $12, 3-lbs = $13, 4 lbs = #14, etc. There’s some variation.
Base + Adds = weight x Base $ per Lb + ADDS (see below).
PRICE = Retail Price
Total $ per Lb = Retail Price divided by Weight – this allows be to notice items that are either too cheap or too expenisve compared to the list.
ADDS are handles. spouts, holes, notches, hassle factor