A tool designed to assist creators in determining the optimal sale price for their unique goods. It typically incorporates factors such as the cost of materials, labor hours, overhead expenses, and desired profit margins to arrive at a suggested retail value. For example, a maker might input the expense of the yarn, the time spent knitting, a portion of studio rent, and a target profit to see a calculated price.
Establishing appropriate prices is crucial for business sustainability. Consistent use of such a system aids in ensuring that revenue covers all production costs and generates a profit, allowing for growth and continued operation. Historically, craftspeople often relied on intuition or simple markups; standardized methods introduce accuracy and transparency into the pricing process.
