Ann Barber of National Craft Association
The secret to success in your art and craft business is to "Think Profit", not just at the point of a sale, but apply this thinking to everything you do for your business. Profits don't just happen with a sale. They are created by careful planning in every aspect of your business. Plan for profits!
1. Make sure you have the total cost for the item before establishing the selling price. Be sure to include a reasonable labor charge, overhead and fixed expenses to your actual materials and supply cost for each item. If you don't price to cover total cost, you will not make the amount of profit you need to grow your business.
2. Be cost effective. Don't spend 10 hours creating an item that you can only retail for $30. Set a dollar amount for your labor. Design products that keep the time investment low and profit margin high. Evaluate how to be more time efficient with the products you make. Learn to group tasks together to save time. For example you are going to make 2 dozen of one item; cut all the ribbon needed at once, paint all the same color at once, do all the gluing of pieces together at once, etc.
Read more tips here... 
