Fellow artists and creative professionals often ask what they should consider in setting the price for their creative work or service. These are the top 3 things to consider (in reverse order):

#3 Research your contemporaries and how they price their creative products and services to get a sense of what pricing already exists in the market and what customers are accustomed to and willing to pay.

#2 Factor in the cost of all the components that directly (materials) and indirectly, (rentals, transportation, shipping & handling, advertising, etc) used to produce your creative work and get it to the customer.

#1 ALWAYS, ALWAYS factor in the cost of your time and labor. If you’re creating a piece of fine art or directing a performance work, think…”what is an hour of your time worth?” The hourly wage for a fine arts teacher or director/choreographer may be a good proxy. If you’re in the culinary arts, break down the hourly wage for a cook, master chef or even a pastry chef with your equivalent skills.  And if you’re in the computer programming/graphic design realm, what’s the going rate for a consultant in that space?  Consider. your experience and skill level. Be fair and practical.

Etsy blogger, Danielle, shared the following formula for creatives to price their work(s). It’s a pretty good guideline.

Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail