Originally Posted by SheLion
Exactly! And in the end, it hurts everyone because there will always be someone that sells cheaper. There are customers that value quality and understand that quality costs money but they are few, and getting more scarce it seems.
Pricing handmade goods is an art as well as a science. It causes consternation pretty much universally, no matter the product. But a person that correctly figures in costs such as labor and overhead (rent, utilities, insurance, etc.) will never be able to sell as cheaply as a person that just figures (or guesstimates) their material cost and multiplies by x for wholesale and y for retail.
And what amazes me is that the people that don't include labor in their pricing would never work for free at their 'day' job. Go figure.
I hear what you're saying about hobbyists undercutting prices, but I at least partially disagree with you. For sure- hobbyists in many circumstances are doing themselves a disservice by undercutting prices; that's true for all the reasons you both have listed and more. BUT- there's a fair percentage that don't need to make top dollar, and will never ever be selling for the purpose of earning a living. They are there to: help pay for supplies, use up product to create a reason to make more, get an ego boost when people ooh and aah over their stuff, and as a social outlet. For sure- them undercutting market value hurts my business; I don't like it. But that's not their problem- nor should it be. At the end of the day, we are in a market driven society. I chose to make a business doing things I love, and I made that decision knowing well that a portion of my competition will not be profit driven. It sucks, yes- but it's what I signed up for with open eyes.
In the end- MOST hobbyists make us look damn good in comparison. And those that kick butt? I don't know- I guess all I can do is wish them luck and envy them the financial position they're in where they don't have to make it as profitable as possible.