I recently had a post regarding the ‘worth’ of our handmade items, where the consensus was that really, you’re unlikely to get what a handmade item is worth, however one thing that looked possible to buck that trend was selling patterns – this sounds a bit counter intuitive, but when you think about it, enabling other people to make their own things is a gift that keeps on giving in the income front compared to your own one-off efforts (kind of think of it like a factory of workers making your things, except they’re paying you to work!).
Even if you remake the same thing multiple times, although you will probably speed up over time, it’s unlikely that your margins will be that well influenced by it, whereas if you’ve made a pattern, once you’ve created the original item, or items from the pattern, written it up and perhaps had it tested, you are left with finding a good outlet to sell, advertising it, and then letting it go out into the world (unless you choose to hand draw your patterns, in which case I’d say you were slightly nuts ;o) I do know someone that does it though…).
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| And look, they last for EVER! |
So how much is a pattern worth then? I had a thunk about it, and I have come up with the following formula:
Firstly the preparation element:
Materials to make the original item
The cost of your time spent making the item + time spent writing up the pattern + time spent finding testers + time spent handling feedback from testers + time spent marketing it
Paying testers for their time (this one very much depends on what you’re doing it for whether you’re likely to get people willing to test for free in exchange for the free pattern, or if it’s a more professional venture such as a book where they will look for compensation for editing)
Electricity to run your sewing machine/computer/lighting during this time + whatever your source of heating/cooling is (as relevant)
Total cost of materials and labour
Secondly the ‘how many times will this sell’ element:
This is trickier, because in a way it’s a ‘how long is a piece of string’ element, and is rather reliant on your marketing campaign, but there is a likely amount that will allow you to break even which we’ll use for our projections.
Thirdly the selling costs:
Whichever way you choose to sell your pattern you are going to incur fees of some kind whether it’s printing costs, paypal fees and/or website fees, and you really need to work this out on a per unit basis – paypal fees, for example, are charged like this, while the likes of Etsy charge on a per listing basis.
The overall formula is:
(Total cost of materials and labour / How many times will this sell) + Selling costs
Now you will notice that the time element is considerably larger than for the handmade item formula, and let’s face it, that was pretty big to start with! Effectively your initial outlay is much greater, but your longer term return is better, and depending on where you choose to sell it, it could keep bringing in a return for years, although likely at an exponentially slower rate year on year.
Putting this into practice, how much would the pattern be worth for the bear from the last post.
Materials + time to make + electricity was already calculated for the making part as:
£461.58
Time writing up the pattern = 6 hours (this is a guess, but there is a lot of description in a bear, although many elements could be reused in other patterns going forward)
Time finding testers = 2 hours (we shall assume adding it in a blog post and interacting afterwards)
Time handling feedback = 4 hours
Time marketing the pattern = 5 hours (assuming e-mailing various bear shops to enquire about selling, adding a blog post, and posting to Facebook and other online locations)
Using the same £10 for my time and electricity as the original calculation, that comes to:
17 x £10 = £170
Add this on to the previous costs comes to:
£631.78
Will I need to pay testers? Well I’m not intending to write a hypothetical book with this pattern, so we’ll assume a couple of friends have volunteered for free, so the overall materials and labour total is:
£631.78
How many times do I think this will sell?
Well teddy bears are a niche market, so probably not that many times, let’s be optimistic though, and go for:
20
How much will my selling costs be?
Let’s assume for argument that I print the pattern myself rather than going to a specialist pattern printing company, and it has 6 A3 sheets for the actual pattern, plus 5 A4 sheets of instructions/diagrams, which, according to a local online shop will cost me per pattern:
6 x 12p = 72p for single-sided A3 black and white prints
5 x 4.4p = 22p for double-sided A4 black and white prints
£3.75/20 postage & packaging = 19p
Which means that to produce one pattern unit costs:
£1.13
I’ll sell online through my website or blog, using paypal = 3.4% of transaction fee + 20p per transaction
Which leaves me with an overall total of:
((£631.78 / 20) + £1.13) x 103.4% + 20p = £34.03
Hmm, maybe I’ll not start selling teddy bear patterns!
Let’s look at a quilt then, and price up Madrona Corners (which I have no intention of selling btw, as I free styled it from someone else’s free tute, but let’s play the hypothetical game)
Materials + time to make + electricity was already calculated for the making part as:
£659.69
Time writing up the pattern = 4 hours (this wasn’t a complex pattern, and I always take notes as I go)
Time finding testers = 2 hours (we shall assume adding it in a blog post and interacting afterwards)
Time handling tester feedback = 4 hours
Time marketing the pattern = 3 hours (assuming adding a blog post, offering giveaways in exchange for promotions on other blogs, and posting to Facebook and other online locations)
Using the same £10 for my time and electricity as the original calculation, that comes to:
13 x £10 = £130
Add this on to the previous costs comes to:
£789.69
Will I need to pay testers? Well I’m still not intending to write a hypothetical book with this pattern, so we’ll assume a couple of friends have volunteered for free, so the overall materials and labour total is:
£789.69
How many times do I think this will sell?
This is a far more popular market, and people seem more keen on buying patterns for quilts, so let us make a guess at:
100
How much will my selling costs be?
I have no intention of producing printed copies of this sort of pattern, as there are no hand-drawn templates, therefore my only cost will be the online side of things. I’m intending to use paypal, and to sell through Craftsy, which would cost me 3.4% of transaction fee + 20p per transaction
Which leaves me with an overall total of:
(£789.69/ 100) x 103.4% + 20p = £8.37
That is a far more reasonable amount for the average buyer, and is in the ballpark for what others charge for their quilt patterns. Realistically, a lot of the cost for this quilt was the fact that I long-armed it and had to hire the machine, as well as the fact that it was ginormous and used a lot of fabric, however most quilts I would quilt at home, and would be considerably smaller.
I’m going to take a stab at the bag pricing once I’ve finished the current creation. I’ll work out the ‘worth’ price, and compare that with the current market rates and see how I fare. As Leanne suggested on the last post, this might be ‘where it’s at’, although I suspect I won’t be retiring on the income ;o)
So do you buy patterns of any kind? What do you consider a reasonable price? What would be your upper limit? And do you always expect patterns from one designer to be the same price, or do you expect them to vary with complexity?
I can see you've put a great deal of thought into this so far. I always make my own patterns and have bought only one pattern in the last 20 years and it is for a bag that I haven't made yet. The reason I bought the pattern was it caught my eye and it was cheap. I figured I could modify it to meet my requirements and save some drawing time. I can't answer all of your questions since I really don't buy patterns but I know that most people who sew do buy them and I wish you luck in selling yours.
I hardly ever buy patterns so I'm bugger all help! I am a sucker for a quilt book though, and that, I suppose, is selection of patterns…
I see you have done a lot of calculating, but remember that you also get to keep the bear/quilt that you make to develop the pattern (or sell it if you wish). I do think that your sales expectations are very low and remember that you can sell patterns over more than one year.
Ok I'm slightly in awe of your maths and I think you might have just put me off ever trying to sell anything 😉
Wow you're a bit clever with the maths Katy! I tend to buy quilt patterns online that you download and they are usually the same price regardless of complexity.
This is a difficult part of the selling process for me too. I've found calculation like this to be a good starting point, but you may also want to take into consideration the originality of your idea and the ingenuity that went into making the item as having added benefit. Sometimes that quality doesn't figure anywhere into the standard cost-estimate formula.
I must admit, I only buy quilt patterns (online) if I can't work it our myself from looking at pictures, and then wait for a sale/offer!
I prefer books, when you get a dozen patterns for the equivalent of about a pound per quilt!
I buy more patterns for bags and purses as I can't do the visual breakdown thing on those, but will always google for free versions first.
I think it is all in the marketing, trending value, etc. Having quiltalongs like the Retro Flowers, or an instagram phenomena is the way to go!
You have put a huge amount of thought into all of this – I think with magazines, books and online, there is just so much available for nothing, or very little, that selling patterns is indeed not a way to retire early. As usual, if you found a real gap in the market, something so unusual that everyone wanted it, then you would have a good seller.
Good luck.
I don't think I will get into pattern making, going on your calculations.
I buy the odd pattern, but not necessarily from the same designer. Like the others, I prefer to buy books with a number of patterns, unless there is only one pattern in there I like and all the rest are shite.
Anything craft related seems to be a labour of love rather than something you can make a living on. Maybe you could go on TV and become famous? Move over Geordie Shore………..
Wow , that's a lot of number crunching. It's rare I'll buy a pattern, books or magazines seem to be better value for money. Sometimes patterns can lead to teaching classes so can earn money that way.
You are really thorough at this aren't you!!! I haven't yet replied to your comment about pricing quilts. You raised some good points, (I'm sounding like a Blog spammer, sorry) !but create an awkward position. You gave good reasons why I shouldn't sell quilts below their value! But if they will not sell at their value I am left with keeping them (how much insulation does the house need) or giving them away, and that also affects people's assessment of their worth, and other people's ability to sell at an appropriate value as I am flooding the area with free quilts. When I sell a quilt (for fabric cost rounded up and a contribution for my time) I do tell people that it sadly (for me) isn't viable to charge a realistic price for a hand made quilt, but by buying this one they are allowing me to buy the fabric for the next one.
Any suggestions welcome x
I'm similar to everyone else here, I buy the odd pattern but prefer books which are better value. I have bought a few block patterns from Craftsy which are all paper pieced but mostly get these from free sites. If I like a particular pattern then mostly I can work it out from the photos. I know that some people sell patterns to magazines but then they have the copyright (I think) and they too pay very poorly. Even Jane Brockett, who has written many successful books, says she can't make a living out of it. I think running classes also helps but you have to have a venue etc. Sadly, most people seem to either have another job or a partner who can support them (which as an aging feminist I never thought I would be writing in 2013!)
A well thought out approach! Jxo
I'm going to come back and read this properly later as I'm in a bit of a rush but the first formula looks a bit depressing but the second much better. Thanks for the thought and energy you put in to these posts Katy.
I do buy patterns for quilts that aren't of a scrappy nature. It makes it easier than trying to figure out how much fabric I need when I want something specific. I have also bought the right to use free bag patterns to make items to sell. I am pretty happy to keep creative people creating. I think on both the buying and selling end, we do need to figure in the joy we get from creating-priceless!!!
This is great food for thought and discussion, Katy! I just bought four patterns today, but none of them were for a quilt pattern. Instead, three were embroidery patterns and one was a bag pattern. I rarely buy a quilt pattern, but have been known to. $8-10USD is about what I like to pay, although I have been known to buy a quilt pattern from a famous designer for – gasp – $16! Yeah, I really liked the quilt!
This is a great pattern. I have been reading several of these posts lately, one for children's handmade clothes and one for quilts. I hadn't considered the cost of patterns, which I probably should since I want to start selling my patterns. For patterns in the past I have paid upwards of $15 US, but around $9 keeps me happy. I had never considered what goes into selling a pattern, much like making and selling a quilt. So much to consider!
Hmm, I'm in the Hadley corner I think, generally can work it out, but sometimes I just gotta!
After Trudi's comment above caught my eye I had to scroll back and read what Hadley put and yeah I'm in that camp. I've occasionally bought patterns from friends when I could work it out myself just to support them.
I was thinking of selling my patterns on Craftsy (where it's free and instant) but I thought I'd be waiting too long for a sale so I sold my patterns to a magazine instead where they pay £50 a page so about £150-200 per project. But I get the finished item back and I can see that too if I want. Doesn't really add up to your formula but it's the best way for me as it means I get the money in in one nice sized chunk.
Oh, GOODNESS!! I wish I had been more precise like you when I was pricing out my patterns–but then again–I probably never would have made them to start with! But I've been very pleased with how my bear patterns have sold. I sell them for $15 and although I don't sell a ton, I do sell them continuously year after year. It's a nice little cash flow.
Good luck with the pattern making!
Hugs,
Cheryl
Oh food for thought! I have bought paper pieced patterns as I don't think I am able to work those out and why bother frankly for 3$ when I can download it instantly! Should I be paying more? Quite possibly but if I make it and blog about it then I am also marketing it and because I link to the site I am also helping to sell the pattern again!
I would like to support people with design abilities as it might mean I get more inspiration and patterns to try!
So much thought and maths for hypotheticals! I usually pay about $9 for patterns from US sites and Aussie patterns are usually about $16. I don't know how much pounds this works out to. I don't buy many patterns any more. Tend to find free ones in the blogiverse. But lots of people do like to buy patterns still, I would guess the majority of quilters, who are not as young as us! I think PDF is a especially good option these days.
Great post! I've given this a lot of thought to this as well. But I haven't been nearly methodical about it as you! : ) I think your formula is GREAT and I'm going to do the numbers on the patterns I've already put up for sale (and have sales figures on) right now, just to see how it comes out. But you also have to take into account the fact that price might INFLUENCE how many times a pattern sells. That's the variable that is impossible to predict. If you sold it for half the price, is it possible you'd get twice as many buyers? Or even more than twice as many—which means you would actually earn MORE on a pattern at half the price than you would at the first price? That's what I've been pondering lately in regards to quilt patterns. It'd make for an interesting experiment if anyone is willing to try it. Thanks for the food for thought.
Oh, one more comment on this, which is another aspect that I've been thinking about: If you choose, your patterns could be out there for sale for YEARS. So is there a time limit goal by which you want to earn your money back? What if my pattern is out there for five years—how can I possibly predict how it will sell over the long term? So without setting some sort of time frame, it's hard to say something like "I think I'll sell this pattern 20 times." New people are constantly coming into crafts, so the market that you're selling to is always changing and there might always be possible new customers to sell to. So it's not like you can ever reach market saturation.
I told you I've been thinking about this a lot. LOL