I’m sharing two different formulas for How to Price Wreaths to Sell! I will guide you through a couple of effective strategies to pricing homemade wreaths in a way that maximizes sales and profitability.
You might be asking yourself: Can I make money selling wreaths?
YES, you can!
As a wreath maker, one of the most crucial aspects of running a successful business is determining the right price for your creations. Pricing a faux floral wreath can be a challenging task, as it requires careful consideration of various factors such as material costs, labor, business expenses, and design complexity. Setting the perfect price will not only attract potential buyers, but also ensure that you earn a fair profit for your craftsmanship.
How to Price Wreaths to Sell
The first step is to assess the cost of materials. You are going to need to calculate the expenses associated with the purchasing of every item that you use to build a wreath.
Here are a few examples of items you will need to factor into your material costs before pricing a wreath to sell:
- Artificial flowers
- Wreath base
- Pipe cleaners or chenille stems
- Hot glue
- Bind wire
- Zip ties
Make sure that when you are adding up the cost of materials that you are using the retail value, not a discounted price (even if you purchased the item at a discounted price.) You may need to repurchase an item in the future, and there is no guarantee that it will still be available for purchase at the discounted price. It is important that your pricing remains consistent, so you won’t be able to adjust the cost of the wreath in the future because your material costs have changed.
After you have calculated the cost of materials, you can use that number to begin determining the price of your finished wreath!
Formula #1 for How to Price Wreaths
Of the two methods for pricing a wreath that I will be sharing with you, Formula #1 is the most complex since it includes factoring in expenses and the cost of labor in addition to the cost of materials.
Let me lay this out for you step by step.
Step One: Double the price of the cost of materials.
Remember that number you got when you added up the purchase price of all of the components you used to build your wreath? Simply multiply this number by 2.
Step Two: Determine the cost of labor.
This is a step that is often overlooked by wreathmakers, but it is an important one. Don’t forget, you deserve to compensate yourself for the time spent designing and building a wreath.
There are a couple of methods that can be used to determine labor costs – calculating a percentage or using a daily flat rate.
- An average percentage range for labor is between 20 – 25%.
- An example of a daily flat rate would be $75 per day. You would divide this number by the # of wreaths you make per day. If you make 6 wreaths per day, that would add up to be $12.50 per wreath.
- Calculate additional expenses. Once you begin selling your wreaths, you are no longer just a crafter – you are in business. This means that there are additional expenses that you will need to factor into the price of the product other than the cost of materials.
Step Three: Calculate additional expenses.
Once you begin selling your wreaths, you are no longer just a crafter – you are in business. This means that there are additional expenses that you will need to factor into the price of the product other than the cost of materials.
Some examples of additional business expenses to consider are:
- Packaging and shipping materials
- Fuel (used when driving to purchase supplies)
- Etsy fees
- Paper (used for printing invoices)
- Subscriptions to online platforms
- Wreath making tools and workspace
If you don’t take the time to consider how much you are spending on these items, you may not realize how much these costs are eating into your profit.
Step Four: Plug all of these numbers into this formula:
(Cost of Materials x 2) + Expenses + Labor Rate = Retail Sell Price
Congrats! You have calculated the retail price of your wreath!
FORMULA #2 – My favorite way to price wreaths!
There’s only one step to this method.
Simply triple the cost of materials.
You are going to take that number you got when you added up the purchase price of all of the components you used to build your wreath and multiply it times 3.
Cost of Materials x 3 = Retail Sell Price
If you’d like, you can add a little bit of cushion costs for the average price it takes to ship your product.
That’s your price. It’s that simple!
If you are a beginner, this simplified method may be a good place to start so that you don’t feel overwhelmed by the task of determining a lot of costs that you aren’t yet familiar with. This simpler method also tends to result in a number similar to the more complex Formula #1.
DON’T PRICE WREATHS BASED ON EMOTIONS
I often get asked, “How are people making money on products that are priced so low, and then offering free shipping?!”
Here’s the truth. They’re not. THEY ARE NOT MAKING MONEY.
But let’s give them a little bit of grace. Maybe they are just getting started. Maybe they don’t think they’re good enough. Hopefully, they will learn to value themselves and to value the product and the art that they are making.
Often, when someone is new to selling their craft, they fear that their calculated retail price is too high. You may even find yourself saying I couldn’t afford to pay this much for a wreath. But it is important to remember that you are not pricing your product based on what you can afford.
You are providing potential buyers with a product they want. They value the time and the effort that it saves them to have you design and produce it, and buyers are willing to pay for this convenience!
Don’t forget . . . not all of your profits will go straight into your pocket. If you want to sustain your business, you will have to reinvest a portion of that profit back into your business. So if you want to make the leap from being a crafter to running a profitable business, pricing appropriately is crucial to continued success.
OTHER THINGS TO CONSIDER WHEN PRICING WREATHS TO SELL
Don’t attempt to sell your wreaths in places where customers are not willing to pay the prices you have determined. This may mean that your local craft fair is not a good fit for you. That’s okay.
There are other places where you can sell your wreaths where buyers are willing to pay for quality handmade items. Etsy is a great place to start.
Additionally, when it comes to determining your retail price, consistency is key. Make sure that you choose a method for pricing that you are going to be able to use consistently. This will make the process of calculating prices simpler for you while also providing reliability to repeat customers.
Pricing a faux floral wreath to sell involves carefully evaluating a variety of costs, and it can feel intimidating at first. But by learning to strike the right balance between these factors, you can ensure that your wreaths are priced attractively while allowing you to earn a fair profit. Remember, it may take some experimentation and adjustment to find the sweet spot for pricing, but with time and experience, you will develop a successful strategy that will work for you and your business.
What methods have you used to price your wreaths to sell?
Here’s more important Wreath Making Business Tips:
I would love to hear about what has worked for you in the comments!