Those of you who have sold your work, or have been commissioned, or who have not sold anything but are thinking about it-- how do you put a price on your dolls? What do you take into consideration when making that decision?
You treat it exactly like it is a business. You are the employee - which means you are the CEO, janitor, designer, shipping department, etc. Expenses: You keep track of ALL of your expenditures on the doll: Your time: time spent sculpting, picking up supplies, mold making, ALL the time you spent making the doll. You should have a job card for it. Materials: the cost of ALL the materials you used making the doll. You saved your receipts, right? Gas and Mileage: Keep track of ALL the mileage you put on the car when it was used for ANY doll business. Postage, Shipping, Handling: These things are expenses. Et cetera: Everything else that cost you money making the doll. Income: Most businesses are in business to make a Profit. You price the doll so that ALL of the expenses (including income tax, blueCross/BlueShield, etc.) are paid in full, and you make a profit. So, if ALL your expenses, including however much you paid yourself per hour, plus materials, etc. were $2000.00, then in order to break even (break even means you did not make a profit) you will have to sell 10 dolls at $200.00 each. Get it? To make a small profit, you will have to sell 10 dolls at $250.00 each. That would make you $500.00 profit for that doll. If you do not keep track of your expenses, there is no way for you to know if you make any money. If you do not keep a job/time card, you will not know how much time it took you to make the doll. What should your paycheck as an employee be? If you do not clock in at your job, does the comapny pay you? Same thing. If you do not know how to start and run a small business, and you want to start a BJD Business, then take a class at a local Community College on how to do it. Always remember that the local, state, and federal government want their share of your profits (taxes). Do not screw around with the tax people !!!! <-- Very important, believe me, I know. Learn what paperwork needs to be kept, and keep it, religiously. Save all your receipts related to the business. Learn to be a good accountant, bookkeeper, secretary, receptionist, as well as a sculptor and designer. Keep track of ALL the time spent doing a BJD Con, including travel, hotel, eating, sitting in the booth, etc. (yep, expenses). If you set up an Etsy shop for your dolls, start a time card for doing it (yep, another expense). Do you expect to work for free? That is how it is done. Running a small business is hard work !!! Beginning doll makers, who do not have the reputation of more established doll makers, should not expect to get the same prices for their dolls as the more established doll makers. You do not start at the top. You work your way to the top. Who are you? Are your dolls any good? Are you reliable? Do you ship in a timely manner? How do your customer service people (you) treat your customers? If you do not keep track of your expenses, it is impossible to know if you are making any money in your doll business. That should be enough to start a lively debate. (^_^)
Research is the most important thing. Know the market you're going to be a part of. What kind of companies are out there and for how much money do they sell their work? First thing to consider is who your target group is. If you want to direct yourself to artdoll buyers, you can afford to ask a higher price, but if you want to stay an interesting company for a beginner hobbyist, you'll have to lower your price. Who your customer is will also determine what you are going to offer with your doll. Perhaps you'll only sell fullsets. Or perhaps you'll just add some eyes and leave it at that. When I know who my customer is going to be, I look up how much it will cost me to produce one doll (including shipping, s-hooks, string, packaging, potential fees a dealer might ask... the whole works). If I do my own casting I can simply pick a price per doll, but if I'm going to place an order with a casting company, I will also have to keep in mind how much money I will need, before the production can actually start. Then, I calculate a 'profit percentage'. How much money would I make with a 50% profit, a 100% profit, a 200% profit. ... To be honest, anything below 100% will get you into trouble. You don't make enough money to create a healthy shop. So, now that I have the figures, I'm going back to research the market some more and am going to compare myself to my direct competitors. I look up companies who make dolls that are about the same quality as my own work and/or have a similar style. Then I look how much their dolls are going for and I base my own price on that. Be careful though: ask too low a price and people will start wondering what's wrong with your doll. Ask the jackpot, and no-one will want to buy it.
