pricing your items for a retail market where you sell directly to the

A PROGRAM OF
404 KIVA COURT | SUITE G | SANTA FE, NM 87505 | 505.992.7600 | FOLKARTALLIANCE.ORG
PRICING YOUR ITEMS FOR A RETAIL MARKET WHERE YOU SELL DIRECTLY TO
THE CUSTOMER
When pricing items for sale in a retail market such as the International Folk Art Market | Santa Fe (IFAM | SF) –
where you sell directly to the customer, there are a variety of factors to consider. Following is a guide to help you
price, or, if already established, review and refine pricing.
Every item in your IFAM | SF booth needs to be labeled with a price.
CHECKLIST
Does your pricing:
 offer a range of prices (price points) for your items available for sale?
PRICING FOR SALE IN A RETAIL MARKET WHERE YOU SELL DIRECTLY TO THE CUSTOMER
To determine your retail pricing for this type of market did you:
 track?
 categorize?
 measure?
 calculate?
TRACK

Materials, labor (skill, time) and other costs directly related to a product and that can be measured exactly,
based on how much is required to make an individual product.

Costs related to doing business, that is, related to the general activities of operating a business, including
producing and selling (for example: management, marketing and general production costs applicable to
more than one product).
CATEGORIZE

Direct Costs – materials, labor and other costs directly related to a product;

Indirect Costs (also known as Overhead) – general services, operations, labor and materials related to the
cost of doing business.
MEASURE
Determine quantity by one or more of the following methods:

measuring;

counting;

weighing;

timing.
CALCULATE

The Direct Costs divided by the number of items (that can be made with the materials, labor required for
making a product) equals Total Direct Costs for a product.

The Indirect Costs divided by the number of items of a product (that can be made within one month)
equals Total Indirect Costs for a product.

The Total Direct Costs for a product added to both the Total Indirect Costs for a product and the Profit
equals the Total Cost to Produce a product.

Total Cost to Produce a product added to the Shipping & Other Costs equals the Cost of the Product
to Sell in a retail market such as the International Folk Art Market | Santa Fe, where you sell directly
to the customer.
Note: Examples of Other Costs – some of which are related to IFAM | SF only - are passport and visa fees, airfare,
local transportation, lodging, meals, IFAA booth fee, IFAA 10% event fee, IFAA 2% banking services fee, packing and
shipping costs. Packing and shipping costs could include: boxes, wrapping or protective materials, time (labor) to
pack, shipping fees, export documentation fees, extra baggage fees (if you brought products in a suitcase).
1 page © IFAA | 2015 M2M Pricing
Please request permission for duplication, [email protected].