Image Courtesy: Simply Netfah Designs

When I started turning my hobby as a seamstress into a small professional business over 30 years ago, I marketed my eastern-inspired, one-of-a-kind designs to a clientele that reflected my own financial ‘affordabilities’ at the time. As such, many of my customers were middle class women who lived paycheck-to-paycheck with little room left over to splurge on non-essentials yet a desire for unique pieces of quality that reflected a connection to their cultural roots. Because many of my earlier clients were also women in my community who I either shared a friendship with or a cultivated connection by association, there was a tendency on my end to bend my prices some when desire for the pieces superseded the price value I placed on them. I did this partly because I understood the shared ‘struggle’ to make ends meet. I did this because of a desire of my own to see my clients look and FEEL adorned in the LOVE that was weaved into each of my custom creations. More importantly yet unfortunately, I did this because I had yet to discover my true self-worth. And though such a gesture is beautiful in the name of universal gifting, as a budding business woman, this was certainly an act of self-sabotage. LoL. I needed a value-based pricing guide moving forward for sure.

It would take me a few years and a few more after-sale regrets to finally get the message that I didn’t have to compromise the worth of my time, energy or creations to appease folks that way. In fact, the average consumer will actually start to question the value and worth of your good or service if it is too low (not competitive). Not only that, by nature people will pay for their priorities. Simply put, if they really want it, they will find a way to get it. No matter what the price. You just have to know what YOU’RE WORTH FIRST and not settle for less in the face of fear or pressure. This goes for anything of integrity and value.

The same holds true for those who make money for others. Nothing is worst than working for someone who only knows how to lower prices to gain business. As an employee, strive to work for companies with integrity and value in both their products/services AND in their employees. If you work for someone who is afraid to ask for more money, doesn’t appreciate you,  or does not know how to sell the value of their product effectively, then find an employer that does. Better yet, if you have what it takes, go into business for yourself! Learn how to sell your value, skill, knowledge and ability because effectively marketing a skill or service from a place of self-worth is one of the main components to success for any serious businessman/woman.

So what is the ‘fair-cost’ formula I developed to meet my value based goals mentioned above?

STEP 1:Identify an hourly base rate for your time and energy. Does $10/hour sound fair to you? Does it feel like what your time is worth? How about $15…$50…$75/hour?

Whether I am creating a whole ensemble or just altering a hem, anytime I sit down at the sewing machine I charge a flat rate that I feel I’m deserving of. It’s a fee that has increased over the years as my level of experience and skill did. It’s a rate that also reflected a growing awareness of the value I placed on the energy I was offering.  When last-minute orders come that need completion in less than a week, they’re considered ‘rush orders’ and for these I add an additional ‘rush’ fee.

STEP 2: Determine the number of hours your project will take to complete to calculate your total labor cost. For example: hourly rate @ $25 x 4 hr labor= $100 TOTAL LABOR COST. When factoring, don’t forget any time put in for sketching design, consultations, fittings, etc. Time is $$$.

STEP 3: Record your cost of actual materials needed for your project. Whatever fabrics, notions, patterns, and trims you purchase, keep your receipts and make note. Often times the tally of these can be determined BEFORE you set your price and start the work.

STEP 4: Calculate TOTAL TIME/LABOR + TOTAL COST OF MATERIAL.

STEP 5: Identify your target market. If their budget is lower than your expected exchange and you are willing to negotiate without settling for less than what you are deserving, align yourself with a consumer market base that is willing, ready and able to pay for your good or service. If  you’re struggling to find a match, identify where you may be ready, willing and able to be flexible in your offerings without compromising your sense of self worth.

While this formula has offered a guideline for me to create a standard pricing platform, there have certainly been times since when I have adjusted my pricing in the name of working with my preferred clients over the years. The difference is that this time there is no regret. This time the flexibility I am exhibiting is still within my comfort zone.

The point of this article is not to discourage you from being bending your own pricing rules, for flexibility is a quality most needed when striving to sustain and move through the ups and downs of growing your business. Rather, the point is to encourage you to identify the value in your unique offerings, assign it a reflective monetary value, and  show you how to calculate the rest with ease.

Hopefully with these tidbits I have succeeded.

Are you a DIY Small Business entrepreneur or an aspiring one? If so, check out our article ‘ 5 Free Must Have Fabric App’s for DIY Home Designers ‘ featuring some really cool conversion apps and a few tips for both businessmen/women and artisans alike.

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