The true cost of selling your handmade products


Always a very tough subjec to approach when you consider your handmade marketplace. This great thought helps demystify much of what someone should consider when pricing their efforts.

tolmema

Pricing your handmade products is really, really hard. Not only do you have to include factors like your overhead and material costs, you also have to set a price point that your customers will buy at. Sometimes the true cost of your products and a popular price point don’t match at all.

So how much should you price your products for? Well, lots of crafters use the pricing formula below (transformed into a pretty picture by me) to determine the price of their products:

Setting Your Costs

For an example, I will use my crochet house slippers (click the link to see the item in question) to create a cost guideline. Each pair of house slippers requires two skeins of coordinating fabrics. Say that I spend $6 per skein on something that is mid-range in price, like Patons yarn or Caron yarn – the material cost comes to $12. I generally…

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2 thoughts on “The true cost of selling your handmade products

  1. I make these fabulous Christmas stockings every year for wine gifts. They are made of high quality silks typically in the 75 to 100 yd price group, then fully lined and embroidered and finished with beautiful trimmings. I estimate the cost pretty closely (I had to last year as I made them for gifts to the folks who work for us so the company was buying) at approximately $100 in materials each. I don’t come cheap and wouldn’t get out of bed for less than $50 an hour (they are lined and interlined so thats about right on the time with embroidery) so that’s $150 x 2 x 2 for retail…..you can see why I give them as gifts. Even I wouldn’t buy a 600 dollar stocking lol. When I donate them I value them at $200 for auctions. I think if I did retail them I’d still be in the 250 range at most for them to actually move off the shelves and at that price point it’s a limited market.

    I think the formula linked is lovely….but probably fairly simple and not realistic. Margins on goods aren’t always a flat formula and the higher the price, typically the lower the margin (not including jewelry lol). So while a guide is nice, it’s not the end all in pricing goods if you want to sell.

    • “High Class dont come at the cost of a wine glass” 🙂 Agreed on the margins. Most handmade items as a general guideline should be items where you can source deals on your materials and easily reproduce in order to turn profit. If not, its much more ideal to list as a couture or fine art item where OOAK prices are the norm.

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