The price is right?

Money. Of all the made up human constructs it really is quite useful. According to the ever reliable Wikipedia, it was first only used either between complete strangers or potential enemies (arguably the same thing). Despite money now being used by both friend and foe, Wikipedia has failed to indicate to me just how much money my money should be worth.

Costing up a product for sale is something I anguish over. The price of materials, overheads and production is easy enough to account for. What continues to get me unstuck is my time. More specifically: how much my time is worth. I’ve had several customers tell me (some quite empathically) that they think my prices are too low. I took this as a complement at first but when I smiled and thanked them it transpired that their comments were actually intended more as concerned advice. On that note I thought I’d use this blog post to address those concerns and cathartically validate my costing process to myself.

Firstly, I do have to admit that experiences in the workplace have had a significant impact on my idea of a reasonable wage. In the past when I, as a naïve fledgling physics graduate, sought work in the corporate world, permanent contracts evaded me as soon as HR heard the words "chronic illness". This resulted in me following awkward temporary contracts like a donkey following a carrot on a stick and oftentimes I ended up working for free.

Many find my tales from employment hard to believe as they mostly defy the civil rights act. I learnt the hard way that it didn’t matter what side of the law a company was on, they always had more power than me. If they chose not to follow the law, there was little I could do. All of this imprinted the idea into me that my time was essentially worthless. Whilst I know this is untrue, it is also fair to say that worth works both ways. If no one pays you a fair wage, it is logical to reason that you can't charge one.

These experiences have given me a bizarre foundation from which to decide how to now appropriately charge for my time. Not in the least because, realistically, my alternative wage option is zero.

These bleak thoughts aside, I knew as soon as I decided to sell things that I wanted to provide as much value for money in my products as I could. I really love making things, creating and designing. The more people I can share that with, the better. On top of this I am also a frugal person on a low income and I know I'm not alone. I wanted people like me to have somewhere that they could find affordable gifts that were unique and original and still made to a high quality with the love and care that they deserve. I believe that’s what I’ve managed to create and I'm so proud of that.

I know it will pain accountants to read this but I also place value in my time that I don’t feel is attributable to money. I get so much joy from making things for others that I’m happy to reduce my profits if it means I am kept busier with orders. I realise this won’t be sustainable as I grow, and inevitably my prices will have to increase accordingly, but I always want to make my products as affordable to the customer as I can. That matters to me. What’s the point in making something great if it isn’t shared?

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Acronym Decoder
HR: Human Resources