HoopMama Talks
HoopMama Real Talk – Price For Profit
Can we have a real talk? Let’s real talk.
If you craft as a business… do you know your profit margins?
I visited an Etsy shop the other day where she had ADULT… NEXT LEVEL RAGLANS…. for $12.50!
Whaaaaat?
Guys. Guys. STOP undervaluing yourself!
NL 6051 Raglan costs me $5.74 so let’s assume she has a tax ID and gets that price, too. Hers were vinyl, So what… $3-$4 there? Etsy and processing fees being around $1.38….
At MINIMUM, the cost is $9. (Let’s leave Etsy fees out of it for the sake of people not selling on Etsy… and also because that math is DE. PRESS. ING) But that $9 doesn’t even include wear and tear on the machine or electricity either.
So her profit? A whopping $3.50.
If it took her 30 minutes to make the shirt from start to finish…. she now officially makes $7/hr.
Let’s do some math real quick.
If you want to make $1,000 a month from this crafting gig, at $7/hr… you would have to work about 36 hours a WEEK. 72 shirts sold at $12.50! Most people wouldn’t accept a REAL job making that amount. Much less one we build ourselves.
Don’t even make me do the math if you want to make $5k or $6k a month!
I personally don’t want to see RAGLANS for anything under $24 on SALE and $28-$32 regular. ($15-$23/shirt profit using the same math above)
Before you say “but my area won’t pay that”
Look at the device you’re on right now… your market does not have to be neighbor Tiffany with the 5 kids that can only pay $10 a shirt. Want people who can afford $24/shirt? The internet goes to their houses, too!
If you want your market to be Tiffany, the Tiffany needs to be okay with Gildan T-shirts and not Next Level RAGLANS! If you’re doing this as a BUSINESS…. there MUST be profit involved.
And before you say “$23 profit?! I’m not greedy, I don’t need to make $46/hr”
You price high so that you CAN offer discounts on special occasions. So you CAN replace something when it’s lost in the mail. So you CAN do giveaways. So you CAN offer free shipping. So you CAN…. pay bills!!
PLUS wouldn’t you rather make ONE shirt for $15 profit, than FIVE?
Just because you’re busy, doesn’t mean you’re doing it right.
If you have these rock bottom prices and you’re 2 items being lost in the mail away from closing your doors? It’s time to change something.
PRICE FOR PROFIT….PAY YOURSELF…. you’ll enjoy your job a lot more.
#15DollarsAnHourMinimumAfterExpensesForCraftBusinessOwners #WheresMyPicketSign
Well said!
Yes, yes, yes! Thank you! I am NOT ok only making $7/hour when I have been doing this for 10 years with a crazy amount invested. Not to mention, customers and friends that I’ve surveyed have said when they see shops offering crazy cheap items like that on sites like Etsy, they automatically asssume it’s not professionally made and either shortcuts have been taken or quality products weren’t used.