Fair Market Price

We are creators and as creative types, we sometimes reach a level with our skills that people are willing to spend money to own an original piece of work by us. If you are anything like me, then clientele is limited to family and friends and monetary charges are thrown out the window because it is done as a favor or gifts. In all honesty, I have a very difficult time pricing my original work because the amount of time that goes into completing a creative project far exceeds the market price of what someone is willing to pay compared to the minimum wage earnings per hour for a full day of work.

That being said, I was sitting at a store working on a creative project when a complete stranger asked me about the project I was working on. We ended up getting in a conversation and then she mentioned how she had four nieces that she would love to give them a handmade gift that I was making, so she asked me how much I charged for my project. At first, I was going to say that my items were not for sale, but then I decided to look into the fair market price of charging for handmade items with a profit in mind.

I found these formulas online that were meant to calculate a fair market price:

-Cost of Supplies + $10 per Hour Time Spent = Price A.
-Cost of Supplies x 3 = Price B.
-Price A + Price B divided by 2 (to get the average between these two prices) = Price C.
-Compare Price C to your Market Research and adjust accordingly.

After I send the suggested price quote that included the cost of supplies along with the amount of time spent, I felt good that I did not low ball the cost of the time spent working on the project. If a person is not willing to pay for the amount of time spent on the project, they are not truly valuing your time as a creator and it would be unwise to invest time into a project for someone who does not respect your time.

I am sure art commissions have a similar pay scale because the cost of time spent working on the project makes up for a large percentage of the project. No matter what, never undervalue your original work. Your time and creative talent is a commodity that is valued!


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