A Wren Says

It still baffles me that people continue to use the argument that items are overpriced based on what they have calculated the price of the materials to be. If a brand were to ever charge you for an item, purely based on the price of the materials, they would go out of business.

For a luxury handbag, perhaps you’re right. Perhaps the leather costs just $50. But this isn’t Ikea. You are not taking that leather and then assembling it yourself. However, even at Ikea, someone had to cut the compressed wood, dye it, package it, ship it, put it on the shelf, sell the tiny meatballs, you get the point.

When you are pricing your items, or just trying to understand the price, you should be charging for more than just the materials. Your time is valuable. The people who work for you are valuable. And your expenses are also valuable. And yes, sometimes even just your brand name is valuable. Allow all of that to factor into how much you charge for your goods and services.

Make your price your price and let the market respond if they agree.