Arts and Crafts Entrepreneurship: Inventory and Pricing

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Post on 20-Nov-2014

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The Arts and Crafts Entrepreneurship Project is a a collaboration between the Arizona Consortium for the Arts and Serendipity Educational Resources.

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  • 1. ARTS AND CRAFTSENTREPRENEURSHIPPROJECTA collaborative project of Artizona and SER

2. Inventory and Pricing 3. Pricing Strategy Cost of Materials Related Costs Pay Yourself 4. Rule of 3MaterialsRelated CostsYou 5. Cost of MaterialsWrite down the total cost of yourmaterials per item. If you use oneyard of material, but make threeitems from that one yard, thendivide the price of the yard by threeand apply the cost to the item.Accounting for all costs is veryimportant so you know what yourbreak-even point is. 6. Related CostsAccount in your expenditures for thecost of the booth, any travelexpenses, etc. Divide the totalamount of related costs by thenumber of products youll beselling and youll have a betteridea of the amount to add to eachitem sold. 7. Pay YourselfYour time is of utmost value. Set areasonable hourly rate and multiplyby the time it takes to produce eachitem sold. 8. Inventory Factors One of a Kind (OOAK) Creating Small Scale Items Functional Items Trends 9. Pricing Fears Customers Only Care About Prices Prices Must Stay In Line with MyCompetitors My Revenue will Drop if PricesRaise 10. 2014 Trends Social Responsibility Repurposed/Reclaimed Bold GeometricShapes Mens Accessories 11. Pricing Dos and DontsDO DONTKnow the Show AttendancePopulationTrendsVariety of Price PointsCreative with Sales Gift with PurchaseCombine Items (giftbasket)Buy More, Save MoreAvoid DestructiveCompetitive PricingHard Costs not feasiblefor small business 12. Inventory Bring enough to sell but not enough that yourtaking most of it back with you Preview your items online and see what gets thegreatest comments and start with those items Multiples of five or six Present limited runs and show exclusives