Actual cost of materials x 2 plus+ design and labor wholesale cost
Wholesale cost x 2 Retail price
Carla, I use a similar pricing formula, but instead of just labor
cost, I charge a studio rate into which I lump labor, cost of doing
business (tools, equipment, gas, keeping the lights on, photography,
etc.) and, at least in theory, a profit margin and then multiply
that rate times the number of hours in a piece. The profit margin,
like in any business, should be for crazy things few artists seem to
have such as savings or retirement accounts, but it’s also there
when the cost of buying materials goes up exponentially.
Cost of doing business and profit margin were hot topics in the
Professional Development Seminar during the SNAG conference last
year. Harriete Estel Berman has from this talk on her
website (scroll down past this year’s agenda).
Hope this helps.