I want to help you build a sustainable, profitable handmade business that makes you consistent income and sales. I only ever teach or recommend marketing, social media, pricing, production and branding tips that I’ve personally used successfully in my own 7-figure handmade businesses.
I'm Mei, from Los Angeles!
starting a business
get more traffic
running a business
make more sales
growing a business
mindset & productivity
pricing & money
selling on etsy
selling on amazon
Pricing handmade has been a discussion among artisans for the longest time.
It’s also what makes or breaks your business. Here’s what I mean:
You won’t make enough money to stay in business.
You risk running a loss because you don’t have enough money to pay for your marketing.
Not to mention the perception you allow your customers to have about your products and brand: cheap, poor quality, low value, bargain buy, unmemorable.
You won’t make enough money to grow.
You’ll forever be in that cycle of creating, selling, creating, selling, but never breaking out of it to create more and sell more because you don’t have enough money for more.
Yes, you do need to have more money to make more of it.
You risk alienating customers.
You might get a sale every now and then and make big bucks, but the thought of when you’ll get your next sale scares you because your handmade items are not priced accessibly in your market.
Did I scare you enough yet?
Pricing is serious stuff, and deserves your attention if you want to build a sustainable business for the long haul.
Fortunately, there’s an easy way to figure out all of this math (and it’s not terribly hard either!)
Here’s a formula many artisans use:
Supplies + Your Time = Item Cost
Item Cost x Markup (between 2.0 – 2.5 or more) = Wholesale Price
Wholesale Price x Markup = Retail Price
Bonus: Click here to download my FREE and easy plug-and-play pricing calculator to figure out what to price your items under a minute without any math!
Here’s an example. Say it takes 15 minutes for you to make a pair of earrings and your hourly wage is $20. Your time spent to make these earrings cost $5 ($20 divide by 4). The beads and findings for the earrings cost $0.85. We’ll use a 2.5 markup.
$0.85 + $5 = $5.85 (Item Cost)
$5.85 x 2.5 = $14.60 (Wholesale Price)
$14.60 x 2.5 = $36.50 (Retail Price)
Your markup is where your profit fits in the picture. But don’t confuse this with money you pay yourself with!
Profit is the money you spend on growing and investing in your business, such as with:
You can set your markup to more than 2 times if you want, as long as your market can bear the higher prices!
Most pricing formulas would advise on a 2 times markup from wholesale to retail pricing, but I’m suggesting you use at least a 2.2 times markup because this will appear more attractive to your wholesale prospects.
It’s the norm and expectation with seasoned retailers and brick and mortar shops.
You never know what might change your mind a few years down the road, so you want to be set right off the bat.
So many artists I know forego the wholesale markup so they can price more affordably in the beginning.
But when they want to grow their business, sell in galleries or brick and mortar stores, or do a daily deal (or any other kind of sales promotion), they find their pricing isn’t adequate and it’s impossible to expand because you wouldn’t be making any money!
So even if you just want to do this as a hobby for now, don’t box yourself in. Assume this is a serious business, because it might turn into that soon!
Pricing is an ongoing adventure for you and your business.
Coming up with your prices includes surveying your competitors and being aware of how much money your customers can afford to give until they stop buying.
There’s a sweet spot, and for that you can definitely call this an art.
Your competitors can be your benchmark for your own pricing.
I made a pricing calculator just for you, and it’s free.
All you need to do is plug in your numbers and it’ll magically show you your wholesale and retail pricing!
Let me know if you have any questions, concerns or even tips for how you price your products.
I’d love to hear from you!
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Hi, Mei.. Thanks for your article.. It’s really helpful to me.. :) Hope you can write more article on handmade business tips.. You are so awesome!! Hope can success like you in the future.. :) Have a nice day.. I really like your product.. but they are too pricey to me.. because I am from Malaysia and the exchange rate for US dollar to Ringgit Malaysia is very high.. So, maybe I need to earn more money, then only can buy your adorable items from you.. :) Hope you can read this comment.. :)
That’s a clear blog post about the topic. I’ve always had the curiosity of understanding how to price some physical item to sell.
That’s a good guideline!
Great article! One question with this formula how due you account for fees like Etsy, PayPal & offering Free Shipping?
Michaelle-Ann, 2 options – either those fees would be covered by the markup (considered overhead) and your pricing would stay the same or you wouldn’t consider them overhead & would instead add them onto the price after you do the markup to ensure the cost is accounted for. Option 1 example – total cost is $5 x 4 = $20 retail price (you’d deduct from your profit to cover your overhead) or Option 2 example your total cost is $5 x 4 = $20 + the .30 listing fee for Etsy + 3% credit card fees = your actual price $20.90. Either way, you need to account for ALL COSTS – tape, boxes, little notecards to say thank you, credit card fees per transaction, etc. Shipping works the same way – either the customer pays for it (built into the price) or you do. Just make sure you don’t inflate that cost – it’d be tacked on the end (if shipping costs $10, you don’t x4 that – you just add $10 onto the price – materials should have already been added into your cost). Hope that helps!
[…] “high” my pricing is would pressure me into lowering them. But to me, a lot goes into pricing handmade items that many people not in business don’t understand. As much of a people pleaser I am, […]
Hi folks from Pricing Handmade Items I like the formula but could you please do a second or third example of this for formula because I was abit confuse how; I taught when it said supplies+your time= item cost what I did however was add up all the supplies I brought and whatever I got out I then add to my time & that was my item cost and continue from there. However in the example shown it was done differently from what I was doing. Look forward to your response soon thanks.
Also I would like to know if I was on the right track or what or where I was going wrong based on your example of the formula. Hope prob’ to give this one a try at sometime. Thanks again for sharing this.
Can you explain how you are currently pricing?
Here’s a further explanation on the pricing formula:
The basic concept is that you want to include EVERYTHING you used to create the item, this will include your time, the materials, the electricity cost and other utility bills (overhead), gas for your car if you drove to the store for the supplies/shipping if ordering online, etc.
This ensures that when you sell your products, you are not paying for these elements out of pocket. All of these should fall total to your item cost.
If you purchase your materials in batches/bulk, you’ll need to figure out how many quantities of your product you can create from it and divide the price by the quantity to get your cost per unit.
Say I buy 1 yard of cloth for $10 and I can make 10 units of my product, so for the cost of cloth per unit is $1.00.
Then say I want to make $60 and hour, so each minute of my time is $1.00. If I take 10 minutes to make the item, my cost is now $11 ($10 + $1 for cloth).
Then keep adding other materials, supplies, costs to derive your final item cost.
There are many ways of pricing your products, but the main critical point here is that you are including ALL costs to make your item.
Hi ok when I do my pricing formula it is: material+labour=
cost *2 is how I does price my items sumtimes however I dnt often use it. I just estimate how much the item is based on the work I put into it. Secondly I find that when I do use it I find that my prices does be high and I does think that if I price it at that price noboby would pay that much for it.
An example is sumtimes I make my own cloth dolls I priced at $15.each but when I do the above formula just for the material & labor alone it came out to $46.85 and I haven’t even *2 it yet so I don’t use the formula for those. Thanks again for your feedback look forward to your next response soon. Thanks!
Kimberley, I think this depends on whether you’re a hobby or a business. And if it’s a business, where do you want to take it, how far do you want to go?
If you’re just in it as a hobby, pricing your dolls at $15 can be enough for you.
But if you’re a business, you definitely want to x 2 again for $46.85. Even if you think no one will buy it at that price, you will be surprised because there is always someone out there who will buy at that higher price.
People spend A LOT of money on things that don’t always make sense at first. For example, I can never imagine spending thousands of dollars on a Gucci or other branded handbag (although tons of other girls would!), but I don’t blink an eye when I spend that money towards self-improvement products (like courses, workshops, etc.)
I would love to read your free ebook but when I click on the link it is not there
it’s clear and though i understand i find it hard to use see you say earring materials at 85c. so that would be plastics and base metals for me, then say you’d wanna use the real stuff and use sterling/gemstones your materials would get up to say 3 or 4$, it doesn’t really reflect in the price so much at the end and time used,
I vary between 5 min and 20 hour earrings, so my time weighs most of the cost, if i charged a price like you suggest i’d ask for so much money no-one would want to buy it… i always feel like the variation between them is too large, either my lower priced items are too cheap or my higher priced items too pricey, how do i even that out a bit more? my variable always seems how much of a salaris i want to give myself. and i’m struggling with that
Hey Esther, you’re not alone with this challenge with pricing! More often that not it ends up being a concern that no one would be willing to pay for the price you’ve come up with.
For this exact scenario you’re going through, it’s amazing what this pricing exercise can tell you about your business. What I’m hearing you say is you want to even out the pricing to something that makes sense to you, but what I’m seeing with your business is that your product line and designs need to change. If you’re spending 20 hours making a pair of earrings, I sure hope you’re charging good money for that – that’s half a week’s worth of work if you’re working 40 full time hours per week! You need to think of creating sustainable designs that don’t take too long to make, or be ready to charge higher prices and brand your shop to back up your pricing. I know as a creative that feels limiting, and it is. But if you want to support yourself with your business and make an income, there are mindset shifts we have to make!
We can talk about this in more detail if you’re interested. I recently helped a client believe she could charge the correct prices when she was undercharging 200% and that empowerment is amazing. https://www.creativehiveco.com/consulting
That is so true. And when you are competing against sweat shops in China it can be difficult to convince customers to pay for hand-made. I closed my business, got an office job, and create only as a hobby now for that very reason. Maybe when the kids are grown I will be able to afford to do it full time again.
Oops, wasnt finish. How would I price a wreath that costs dollars but takes a week to make. Not able to buy tools, pre-cut cards, colored stock, draw and painting is all me. I would love and need xtra cash but the formula for pricing wont work for me. Ideas? Think sales wil come by word of mouth, they are beautiful. Thank you for your time.
The pricing formula exists for many reasons, one of them being your guideline for how to design and craft your wreaths and other products in the future. If it’s taking you 100 hours to make, but you can’t sell it for more than say $200, then the formula is your gentle nudge to go back to the drawing board for your wreathe’s creation process. Here’s the thing though, most artists I’ve worked with don’t believe they can sell their products for what it’s worth (after they do the pricing formula). I’m willing to bet you can find artisanal wreaths that charge premium prices and that do well. And if you can’t, there’s no reason why you can’t blaze your own path with a line of exclusive, handmade and upscale wreaths. You just need to back up your prices and communicate clearly through your brand, copy, photos, etc. as to why the price is justified.
I’m the same way as a fiber artist. But the formula still works out ok. Not to live on right now but a BiG cushion for buying more supplies, larger amount of supplies at lower cost bulk prices to keep in stock and extra me stuff if I want like a massage once in a while. I quit my day job to do my business. Im lucky my husband can support us because my business is paid for by me. Built up very slow over 4 yrs from the entirety of my last paycheck of $1500 that was used to buy my first few items of stock and supplies.
At my previous job in a medical/veterinary/business our processing costs were.
Cost x. 2 + 15%-50% depending on item. (surgical. & supplies from human medicine was very expensive so less markup.
I use a my cost x 2 +30% a vast majority of the time. I can’t charge my time for fiber/knit/spun items most of the time because it takes days and weeks.
But in cases when I do I charge $15/hr + my costs x1.5.
It seems to work very well because even when I have sales of 25% I still make a modest profit.
Thanks a lot for this useful guide!
I often have low price so i think i will renew them!
I also downloaded the calculator, it will help me a lot, thanks again!
Very helpful, Mei! The distinction between pricing as a business vs. pricing as a hobby is fantastic. I have not heard it described that way, and it really explains it well. My physical product is knitting, and it’s extremely time consuming. All the cost is in my time spent to make the pieces. I did go up on my price significantly in the fall, but I would like to plug in using your spreadsheet to see what that says. I’m getting some views but not purchases, so I think my branding is off. I might need one kind of branding to sell patterns and classes and something else to sell products. If I got my money out of it, I would not mind knitting for people, but when my item turns up next to Chinese imports, it’s very hard to make the distinction to a customer who doesn’t understand the difference. I’m talking about being on Etsy, of course. I want to have my own store on my website this year. Thanks for this great article!
Patty, you should check out my friend’s Etsy shop: https://www.etsy.com/shop/CricketsCreations
She makes shawls and scarves and can only make like 1 a day. They have premium pricing, but people still buy them! Yes, branding has a lot to do with positioning yourself as the premium brand and why people should buy from you.
Looked at this shop and this doesn’t look like premium pricing in my opinion. Her average price is $48 per scarf – crafting 1 a day she’s only making $6 per hour before taxes this is not how you make a living off handmade.
yes, this is NOT premium pricing on these shawls!
Firstly I would like to say thank you for your invaluable information that you have shared on your site. I am following your advice and readjusting a few things. I was just wondering with regards to the pricing issue. I sell original artwork and after doing your price calculator it comes up as approximately double of what I am currently charging. Your system of pricing makes total sense and that is definitely in the area of what I would like to charge for my work. But even at the prices I am charging now, I am making very infrequent sales. Do you have any suggestions on this matter?
Thank you for your time,
You’ve seen original art being sold a lot more than what you’re selling them for currently in your Etsy shop. So it may not be a matter of not being able to sell them at a higher price, but more of a how do you market them to people who will pay for a higher price.
If you’re worried that higher prices will make running a business so much harder for you, then you need to start making products and art at different price points. This is a great reason why lots of artists sell prints of their work.
A big thank you for your considered response and taking the time to look at my shop. It is much appreciated and I will be following your advice.
Thanks again and all the best,
Thank you for the information.
I was curious what you do (if you do) sell consignment, how do you factor that in?
I started selling consignment and they charge me 30% of each sale. When I do your equation, and add the 30% on to that, it seems very, very high. Do you think that is fair?
If you do consignment, that 30% comes out of the 2.2 markup as you calculate your retail price.
Here’s the formula again:
Supplies + Your Time = Item Cost
Item Cost x 2.2 (up to 2.5, depending on how much you want to markup) = Wholesale Price
Wholesale Price x 2.2 (consignment percent comes out from this 2.2) = Retail Price
So you don’t have to factor it in, because it already has been considered.
I have read your article and it is helpful for some of what I make. I make nuno felted and hand painted, Zentangle scarves. The last Zentangle scarf took 50 hours to paint by hand. There is no way to charge for the hours, at even 20$ an hour it would make it a 1,000$ scarf. It is not a scarf that can be reproduced, and I only make one of these once in a while. I could do a similar design on the computer and have ones like these printed in limited number, but that would mean those are no handmade. But I digress, how the heck do I price something that can take me hours and hours to paint by hand? If it were an oil painting, your formula would work, but in this case….
PS. I wish I could have included a picture.
I understand the pickle you’re in. And you’re definitely not alone! Creative people like us have so much passion and energy to create really cool things.
Anyway, I made this video here on some suggestions you can take:
I dont understand or I missed something. Where did you get the 12.90 from in your figures?
Also if my cost for supplies are $55 and I make $20 hr for @ 8 hrs of work what should my selling price be?
$0.85 + $5 = $5.85 (Item Cost)
$5.85 x 2.5 = $14.60 (Wholesale Price)
$12.90 x 2.5 = $36.50 (Retail Price)
So sorry for the confusion. That was a typo that I fixed. Here’s the correct example:
$0.85 + $5 = $5.85 (Item Cost)
$5.85 x 2.5 = $14.60 (Wholesale Price)
$14.60 x 2.5 = $36.50 (Retail Price)
Using your numbers, your final retail price should be $860 – $1343 depending on how much you want to mark up. You should download the free pricing calculator in the post above so you can price your products, it’s super helpful and really easy to use!
Love your blog posts! So helpful. I’m definitely struggling with deciding on pricing for the company I’m hoping to launch on New Years. I’ve been following the materials/expenses + labor = item cost, item cost x 2= wholesale price, wholesale x 2 is retail price. But most places that I find using this formula are making things like jewelry that they can make multiple products in an hour, and their materials are very low. However, I crochet and knit, and I find/hear that I make products very quickly in comparison to the average person, but to use even medium quality materials my prices are huge in comparison to what is the average on etsy, which is where I plan to sell. It’s so stressful! For example, a blanket I’m making will take ten skeins of yarn (atleast) and I’m buying the yarn at a discounted price ($13/ skein vs $20 a skein) , but even so the cost of materials is $130. The blanket will likely take me around 16-18 hrs to complete. If I charge $8 an hour, that’s atleast $128. So if I use the formula, I’d have to charge $1032.00 where most are selling their blankets for around $100. I’m using baby alpaca which is a nice quality yarn, but even if I were to use crappy acrylic yarn that isn’t even close in quality, the price would be way more than $100. And who would buy a blanket for $1000? I know I wouldn’t! But that’s the price I get for using the formula. The formula always makes my items so much more expensive than everyone else’s. So confusing to try to apply the usual formula for things this time consuming and costly especially when others selling on etsy can some how charge so much less!!
I had questions about the pricing. Do you have a personal email so we can discuss in private? Thank you. Your tips are so helpful. I really need help pricing my items.
Just emailed you :)
Thanks for this article!
I was wondering how to price digital items? I sell digital invitations and once I make them, they can be sold many times.
Thanks very much
Since digital items benefit from passive income, the disadvantage is you have less freedom to charge more than what other shops are selling for a similar product. Unless you can provide your customers clear reason why your invitations are better or have more value. I would use other shop prices as a benchmark. Figure out what’s the high point, and what’s the low point and decide how you want to position yourself amongst your competitors.
Thank you very much for your response :)
Great article, very informative. I was wondering how do you find your hourly wage?
We’ve been in business for about a year and a half now. We make one product that sells like crazy. This product costs us just under $12 to make and takes around 2 hours. We currently sell them for $50 each. However, according to your pricing, we would know need to sell them (setting an hourly wage of a low $10) for $64 for wholesale and over $125 retail!
I feel really overwhelmed by that number. Although, I will admit that we never seem yo have money laying around for new products and machines that we would like. But I am scared that our regular customers would run for the hills if we came out with new pricing of over 2x’s what we normally charge. We actual chose that price because that tends to be the average price you can get our item from other Etsy sellers.
I’m just scared!
I think this particular formula is based on crafts that aren’t time intensive. For example, crocheting a fairly simple scarf with a cheap yarn may take around 3 hours.
3 (time) x 9 (hourly wage) = 27
Materials = $8 for two balls of cheap yarn
Item cost = $35
x 2.5 = $87.50 (wholesale) <- Already this is quite expensive and will rarely sell
x 2.5 = $218.75 (retail) <- I can't see anyone buying a 3-hour scarf for this price. It may sell with an intricate stitch pattern and lovely luxury yarn with some colorwork or personalization for the buyer, but this would be at least a 9-hour scarf
I agree with Britt about this formula being tricky for time intensive items. I create stainless steel chainmaille jewelry. For one of my bracelets, the materials cost $3.54 and it takes 2 hours to make. I need to price it at a business price rather than a hobby price. If a professional photographer or graphic designer can charge upwards of $50 per hour, I believe that $35 per hour for my work is not unreasonable.
I’m currently playing around with my own pricing formula. I’ve read several articles about pricing chainmaille items Here are my possible wholesale formulas right now …
Labor + materials
(Labor + materials) * profit margin
((Labor + materials) * profit margin) + overhead
I’m simply not sure what percentage to use for profit margin or how to figure out my overhead. Pricing is so difficult!!
Hey Sarah! Have you looked at the video here that explains what to do when your prices are too high? https://www.creativehiveco.com/freequickwins/
Also bear in mind that the labor is ONE way you get paid, but so is your profit margin. You get paid in two ways. The bulk of how you get paid should really be from your profit margins. Having said that, if you lowered your labor to $10-15/hour, and follow the pricing guide again, you’ll see that you actually pocket about $90+ if you sold one of your bracelets at retail price. That gets you to $45/hour of profit (after materials cost) BUT note that I set labor as $10/hr and marked up your prices twice (once for wholesale, and again for retail).
$3.54 + ($10 x 2) = $23.54
$23.54 x 2 = $47.08
$47.08 x 2 = $94.16 –> retail price
$94.16 – materials ($3.54) = $90.62
$90.62 profit divide by 2 hours time spent making this piece = $45.31/hour –> that’s how much money you made (not $10/hour for labor).
I think I get the pricing but do you know of a link where i can get tips for spreadsheet that documents and shows breakdown of cost and earning. Hope this makes sense. Thank you.
I ‘m a sculptor/ jewellery designer and I have a question about pricing. With my work, I will carve and sculpt an original (master pattern) then make a mold of it, then get it cast by the lost wax process. How do I work out the pricing if it takes me a week or more to make the master pattern but after I can cast up as many as I want?
Hey Richard! I have a similar process. It takes me a good 1-3 weeks to design a new item, but once I’ve got the systems and procedures down, I can make a few dozen replicas in a day. I don’t usually include the cost of my design in the pricing of the product, since I have profit margins to pay me for my time. If you want, you could include that time and materials used in the beginning. Say it takes you 20 hours to sculpt the original, at $15 an hour, that’d be $350 that you would then spread across the price of however many replicas you think you’ll sell over the lifespan of this design. Yes, this is a totally abstract number, but anything will help at least account for your time upfront. So if you anticipate selling 100 pieces of your design, you’d add on a $3.50 cost on to each piece. Make sense? :)
I’ve read all the comments on here and the ones about knitted and crocheted items confirm my view that sites like Etsy and eBay and Facebook have made it far too easy for Hobbyists, i.e. people who do not declare their earnings and pay tax, and people who do it just because they like making things and only want to cover the cost of materials, make it very difficult for people to run a business. I love making things but as I have no income other than what I earn myself I can’t afford make and sell because the Hobbyists undercut ‘living wage’ pricing.
Hi, I make leather earrings and calculated my materials cost per pair to be $1.48 + $2 labor = $3.48 x 2 = $7 wholesale so $14 retail. Is that correct? I am selling them right now for $12 with a buy 3 or more for $10 each. But have recently had a local store want to buy them wholesale at half what I sell for so $6 each and buy 24 pairs to start. Would this still allow me profit or should I raise my prices so I can have higher wholesale price? And, if so, how do I explain price increase on my online page?
Amy, you asked, “…how do I explain price increase on my online page?”
Often, businesses must adjust for increased costs of doing business. This can include anything from martial cost increases to variable processing costs from credit processors, shipping companies, or any other services used in the process of creating and moving the product.
Additionally, costs can be impacted due to company redesign (buyouts, incorporations, etc.), which can be explained simply and is usually a very small impact, if any, on sales.
This means that with a simple statement about restructuring, changing suppliers, adjusting shipping methods, improving shipping supplies, improving origin supplies for a better quality product, adjusting for a larger marketing push (expanding production), or any mixture of these, it is easy to put a statement out as to a simple price change of less than 25% difference. — In my experience, one you go beyond about a 125% price change, there should be a more in-depth statement to the reason, but as long as it’s less than this, it is usually not argued by consumers.
In your case:
$12 * 125% = $15.00
Since your price adjustment of $14 is less than the $15 maximum change, a simple statement to changes should easily placate any questions.
I would likely make a statement along the lines:
“Due to a change in business model to increase production and provide the same quality product as before, the price has been adjusted to allow for extra demand and allow for additional avenues for customers to be able to purchase and enjoy the product.”
(You can adjust “the product” to “my product” if you want the statement to present as less business and more personal in nature.)
I hope this helps.
This post is very helpful, but like many of the other comments here, I feel my items are priced far too high once I use the formula. My main item that I sell is a fairy styled apron dress, lots of aunts and grandmas buy them for their little one’s birthday, but I fear I am out pricing myself using your formula. My overall goal with my work is to become a full time creator, and have my items carried wholesale.
$9.47 + $18.75(90 min *12.5/hr) = $28.22 (Item Cost)
$28.22 x 2.5 = $70.55 (Wholesale Price)
$70.55 x 2.5 = $176.38 (Retail Price)
Currently my items are carried in two stores. I’ve been using the formula of item cost(28.22)*2=retail price(56.50) Using the item cost as my wholesale price. What’s the best way of fixing this? Thank you!
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Thank you for the very helpful post.
My husband and I make and sell soy candles. He pours and labels the candles. I design and develop the packaging, design the website and take care of social media etc . I have worked out the cost to make one candle including my husbands time. How do I factor in the cost for my time?
Any advice would be most appreciated.
We’re buying wooden spoons, and wooden coasters, etc… and laser wood burning designs into them and clever sayings. These items require very little true work time since they’re semi finished products and the laser burning is being done in the background. This is a fun thing for us, but we do need to value our products properly for shows and shops . Do you have suggestions?
The craft I am trying to make for the season is called “snow paint” . An empty spray bottle with water and food coloring. I am just confused as to how I would price these because I don’t think it would take much time to make. I would also be purchasing the items to start from dollar tree due to low income. I’m not sure how I would price these. I was thinking maybe $5 a bottle? Please help ?
I want to turn my hobby into business making my own one-of -kind wearable art jewelry.
I bought all beading materials and supplies while living in Canada from a reputable online supplier in US.
I have now relocated to India and pricing is always a problem because of currency converting..obviously I have paid and invested in US dollars so have to price them in US dollars and then convert the amount to Indian
I work with all mediums using good quality materials, findings and beads, custom make- from delicate to chunky pieces of wearable art.
Have tried simplfying the calculation for pricing a piece without the addition of labour- rate per hour ( which could be anything from $ 10 to 20 per hour) as here clients might find the ( Converted )price on the higher side.
So here I go…. if I have used materials worth US $40 and I simply x multiply it by 3 = which is $ 120/- (material + time & labour + profit)….is this reasonable enough ?
No taxes, electricity, fuel or parcel service/postage are applied or included.
Would like your opinion , thankyou very much.
Your blog is really good, Mei. Loved learning how to calculate price and reading your articles. Not done reading all of them but learning from a pro, you should take your time so that you can truly absorb it. Thank yoy!
How do you add in for shipping and shipping supplies?
your advice here really is helpful. thank you.
I live in a country called Zimbabwe. Its a struggling economy. Im a self taught crafter – beading, painting on tee shirts and shoes and now making gift boxes. All of the above are labour intensive and Ive always used high end material with a professional finishing. for my gift boxes, I use a paper size that allows me to get at least 9 x A4 size sheets at a cost of $5 vat incl. After showing my boxes to a jewellery shop, they asked if I could commit to an order of 40 boxes every 2 weeks.They mentioned that they dont want to spend a lot and also mentioned that they bought pre cut ready to be assembled gift boxes for 50 cents(12 usd cents) This order is a dream – its what i wanted but im also afraid of pricing, and in fact i dont know how to price. Whilst this order would really help me to get my name out there, it will also put a lot of pressure on me since i only use a cutting mat and a metal ruler(I dont even have a scoring board). I can spend at least 45mins to an hour to make an intricate box.
Please help. Is there a chance to chat privately over the email?
I am coming to your post a little late after you posted it. Better late than never!! :-)
It is very helpful and the download is excellent. I have only been wondering the definition of “Your time” in the formula: do you count only production time in (it seems so from your example), and other time for material sourcing, marketing etc. (= non-production time) is part of the markup and multiplication? Or do you put some of the other (non-production) time” into the part “Your time”?
Thanks for your insights!
Hi i don,t have a website yet i just trying to make some money from me making some thing,s that i have made for some friend,s and family,s that i have made for gift,s and now i just was wonding how to make some money i had to leave my work because i fell and i got heart and i can,t work any more so i through i could make some money on the nice thing,s that make and let some one have some nice thing,s to give for a gift ok i just need to finger out how to do that ok thank your fro your time ms , Lynette A, Miller at email@example.com
According to this i just made a 23,000 dollar custom tailored winter coat for myself, it is covered in swarovski crystal beads, obsidian, and hours of handcrafted details puffy stars of david, puffy menorah, little silver crosses on the zipper which is full length like a cloak from kingdom hearts, and the whole thing really has that vibe, but with direct religious symbolism, rather than alluded. I really wanted something that felt sporty like an adidas tracksuit, bejeweled in a victorian style, with flowing strappy ribbons in cross configurations down the back and sleeves, little jewel crosses on the ribbon straps where they cross over, it was quite complex, and took a lot of time, but it’s like nothing else i’ve seen, It really looks like something an anime character would wear, and i love it. It also has a really plush liner that i also handmade, and the entire hooded trench coat like thing goes down to the feet, 5 and a half feet in total length when worn, with wizardlike sleeves. Just totally unique
Hello, I am enjoying your blogs and FB posts. I had a pet sitting business for 10 years but that type of business structure is much different then selling my handmade mosaic artwork. I know this question may have been previously been asked or not make much sense, but I need to ask for clarification anyway… For the pricing calculator you have the cost of the time and item made, then the wholesale price then the retail price. When I am selling my art myself at events and on my online store will I be selling it at the wholesale price or the retail price? I am assuming the wholesale price is for brick and mortar stores and then they charge whatever retail price they wish to charge. That is why I am confused. I have been selling my items for the wholesale price to my customers. I am a very new business and want to be sure I have the concept of which pricing to charge whom. I plan on trying to sell my mosaic rocks at nurseries and garden type places as well. I have put together a portfolio for me to take with me when I meet with store owners, etc, The prices I have quoted on the pictures of my art is the wholesale price, the same price I charge my own customers. Sorry that I am confused on this front, just want to be sure of what I am doing. Thank you
Hello!!! I love the information that you provided. My question is what is the best way to calculate by the yard fabrics. Example, I can get multiple bags from let’s say one yard at times. How do I break the cost down on how much I spent on fabric if I can get more than one bag off of a yardage? I hope I didn’t confuse you.
thanks for the tips putting price is my biggest difficulty.
Not working. The instructions are confusing about how to get to it. I ldownoaded it thru the link but don’t see it
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