Nicola Smith

Nicola Smith

I'm the founder of this wonderful website providing help for talented people who want to sell more of their amazing work.I'm also the 'brains' behind the #craftbizproject!
Nicola Smith

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 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 (honestly I have seen that!).

    To run a successful craft business you need to know your numbers and have a formula that works,  I’ll happily show you how.

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 lets 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.

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.

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

It simply 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 probably will pay!

But if you still think it is too high, well then you have to make a decision.  The 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.

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!

Join a Handmade Product Pricing Class today
Join a Handmade Product Pricing Class today

What if you could work all this out really easily?
All you need is a pen and paper with a walkthrough eBook to guide you or a spreadsheet where you simply add in your numbers and it works it all out for you!
Sound good, doesn't it?
You get both the ebook AND the spreadsheet in the Handmade Perfect Product Pricing 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!
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.   

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