10Creatives and Money: Profit and Pricing
Many business owners have a pricing formula they follow to make sure their business is cash flow positive. Some multiply their cost by 2.5 to come up with a price. This formula doesn’t work well if you’re a creative entrepreneur who should be taking into consideration more variables than just cost. Besides product cost, do consider perceived value, brand, circumstances, originality, scarcity, and other factors which you often can’t put a price on.
As a creative, you often should ask yourself how much the client is willing to pay for your work. Taking a painter as an example, it’s not the cost of paints, brushes, and canvas that should determine the price. It’s the perceived value, which is influenced ...
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