Pricing handmade products is easier than you think!If you don’t charge enough for your handmade products you won’t make any money!  You won’t be able to buy new materials, you won’t be able to cover your costs, and then you won’t be able to make anymore. Sound scary? It should. Getting your pricing right is crucial to your success! And it is easier than you think except you can’t…

  • pluck a number out of thin air and use that to set a price
  •  ask a stranger (or friend) how much they would pay.
  • And you simply can’t take the amount a product has cost you and multiply it by two and then times by 4 , it simply doesn’t work!

    To run a successful craft business you need to get your handmade pricing right, which means you need to know your numbers.  To have a handmade business which you love and you earn from – whether it is enough to pay your rent/mortgage, fund your next holiday or to put food on the table – you need this.

    Luckily I have a formula that works,  and I want to share it with you.  I also have a super easy way you can make this work for you and your handmade business.

It is all about the numbers!!!

To price your handmade products you need to know YOUR numbers.  That is your products costs, your business expenses (including the Members Club and any other AHB classes or courses you take to further your business)  and you need to factor in an hourly rate for your making time, oh and let’s not forget a Research and Development budget and a Marketing budget, and a profit on top would be nice too, so you can invest back into your business.  I know it seems like a lot, but if you are running a business, then you need to cover all this!

It’s easier than you think.  You simply need to break everything, other than your product costs, down into a cost per hour, and multiply by the amount of time it takes to make your product.

Are you ready for the best handmade product pricing formula there is?

Product Direct Costs + (Hourly Business Expenses x making time) + (Your Hourly Rate x Making Time) + (Your Hourly Additional Budgets x Making Time) = Your Product Price

If you want to sell wholesale you have to factor that in on top.  This is your selling price.

This formula really works!   It means you are earning a fair price for your work!   It means you can actually make a living from your handmade business.

But what if you think the cost is way to high?

I’m sorry to say but it could be that as it stands your product is not viable, though this is rarely the case! Normally it is that you, the maker/designer/creator/artist of a piece, is undervaluing the work that you do.  Simply you have the skills, knowledge and talent to create, so of course you wouldn’t pay that amount for that item.   Your ideal audience (when you are marketing to the right audience!) will pay!

Handmade should never be cheap!   But if you still think it is too high, well then you have to make a decision.  

Your costs and expenses won’t change just because you lower the price. You will simply  have less money for your time.   It will still cost you the same to make/create/design your handmade product unless you can find cheaper supplies, which is one option to look at.

Your time won’t change either – unless you can find some new technique to speed your process up.

The next option to consider is ‘adding value’  – this could include increasing your product costs by only using the best available materials, or by improving the packaging or even by adding a personalisation option to each make.  Can you do this?

Another consideration is that your hourly rate is too high?  I’m pretty sure if anything it is too low!  (Remember your hourly rate should not be less than the minimum hourly wage.)  If there is room for movement here, are you happy to work for that rate?

You deserve to be paid for your skills and time!

If you would like more help with your pricing, I recommend my Handmade Product Pricing class. More details below.

Handcrafted Product Pricing
Handcrafted Product Pricing

Learn how to correctly price your handmade products with this class and as an added extra you also get a fantastic discount calculator too. So whenever you are tempted to have a sale or an offer you can see exactly how it will impact how much you will make before you have the sale!

"“I read your ebook and calculated my pricing on paper. OMG I'm now using your spreadsheet it's awesome! I feel very american saying awesome but its the best way I can describe it. Dawn Jones Smith of Pretty Formal Wedding Stationery'

One Off Payment

Price: £19.95

Pricing is crucial is to your future handmade business success.
Once you know your numbers, you can confidently move your business forward and invest in your business.