Continued from Pricing your Stained Glass Art...
After you download the Stained Glass Art Pricing Spreadsheet, you will need to replace the sample rates in the yellow box to reflect the rates you want to charge for your work.
If you haven’t yet downloaded the Stained Glass Art Pricing Spreadsheet with formulas and instructions, go ahead and download it now.
The spreadsheet calculates the price for your stained glass art, accounting for materials, labor and overhead costs without risk, and prices each piece on a fair scale – no matter how big or small, or intricate or minimal. It’s very simple:
Price per Piece of Glass + Price per Sq Ft + Embellishments + Overhead + Profit + Point of Sale Fees
In case you need help, I'll explain each of these factors of your price:
Price per Piece of Glass
The price per piece of glass represents your labor cost based on your desired hourly rate. Decide how much time, on average you spend per piece of glass in your designs. For example, including cutting my pattern, gluing or tracing (however you do it), cutting the glass, grinding the glass, foiling the glass, soldering, washing, polishing… I spend 10-11 minutes touching each piece of glass in the design. Based on a sample hourly rate of $13.00, 10-11 minutes represents about $2.20 per piece.
You might want a higher hourly rate, you may work faster or slower – set this number to suit you.
If you’re not sure what hourly rate you should charge for your work, consider your experience and skill. If you are a beginner, you would charge an “Apprentice” rate, which would be close to minimum wage in your area. As you learn and improve, increase your hourly rate over time to match the skill level you offer.
Price per Square Foot
This is the amount your direct materials cost you, per square foot.
"Direct Materials" are the materials you use that go directly into your work, like stained glass, copper foil, solder, etc. It becomes a part of your finished piece. Typically hardware and chemicals may be priced as direct materials or overhead, depending on how they're purchased and used. You can categorize them either way. But since we purchase most of our direct materials on an indirect basis (we buy a sheet of glass, a roll of copper foil, and a roll of solder, and use portions of them on multiple projects, as we do bottles of flux and patina), in this spreadsheet we apply all production materials as "Direct Materials".
Use the "Direct Materials" table in the spreadsheet to figure out what you spend monthly on direct materials. Then complete the list of "Finished Work". The spreadsheet will calculate your Price per Sq Ft and populate this rate in the Pricing Sheet for you.
Since art is unpredictable, we've included a space for add-ons. If you've framed a piece, or your piece has a base, or, for instance, you've made a lamp or lantern, this is where you include the COST of the frame or base, or lantern. Material overhead won't be applied to this amount, but keep in mind, Profit and Point of Sale Fees will.
"Overhead" in this case represents your indirect costs and expenses and are applied to your price as a percentage of your Direct Material costs.
These are costs of running your business that don't apply to one specific item, but are necessary to work. Examples of overhead costs are packaging materials, gloves, paper towels....items you use indiscriminately throughout the day. Replacement parts on equipment, like grinder bits and air filters, as well as business costs such as office supplies, marketing, rent and electricity, are also all overhead costs.
Everyone’s overhead costs are different, and since the list of possible indirect costs is limitless, this can exceed 100% of your direct materials. Populate the tables in the spreadsheet titled "Overhead Supplies" and "Overhead Expenses" to find your total monthly overhead costs. Make sure that you list all of your costs that you want to cover in your pricing.
The formulas in the spreadsheet will use this information with your "Direct Materials" table to compute your material overhead percentage and populate the Pricing Sheet with your Overhead Percentage rate.
Adding profit will allow your business to grow! If you want more equipment, tools, workspace, without starving for it, add a % here to cover that! The amount is up to you.
Point of Sale (POS) Fees
Point of Sale (POS) Fees are costs added to the end of your price. They are charged as a percentage of your sale, such as credit card fees, consignment fees, percentage discount codes, and (ugh!) Etsy seller fees! Also, they need to be padded and then rounded up, because not only do they apply to the total sale price of your item (including the amount you add to cover them!), some even apply to shipping (which might not be included in your price). AND they add up!
So, just fill out the green shaded areas of the POS Fees table, and the spreadsheet will pad them, add them up, round them up, and then incorporate your POS costs to the Pricing Sheet.
As you track costs and sales over time, you’ll update these tables. As your skills improve you’ll increase the per piece rate. As your experience grows, and you settle on your favorite materials and suppliers, your supply costs will level out, allowing your square foot rate to decrease over time. As your sales increase, and your cost of sales comes under control, your overhead rate is likely to go down as well.
If you have any comments or questions about determining your rates for pricing your stained glass art, feel free to email us directly at Jodeliece@BradstreetGlass.com.