A best-selling author of several books, including The Crafts Business Answer Book and Resource Guide and Creative Cash . She can also be found online sharing her business insights with crafters throughout the world. Brabec says the most popular question she gets from crafters wishing to start their own craft business pertains to pricing. There are no easy answers for this.
Experience is really the best teacher.
Brabec also says that crafters tend to price their products based on how much money they would be able to pay for the product if they were the buyer. Most crafters are not rich. She suggests that even crafters who only sell at craft fairs apply for permits. You're in business in the eyes of the IRS, and once you're in business with the IRS, even if it's a hobby business, then everyone else perceives you to be in business, too. This means a crafter must collect sales tax.