What to charge for your Handmade Craft
Now that you want to sell your handmade crafts, your big decision is how much you want to charge for it. There are many formulas out there as guidelines but remember in the end it is all up to you how much you want to charge.
One Formula that I use is:
1. Decide how much you want to be paid per hour when working on your “craft”.
2. Then multiply this hourly rate by the number of hours a week that you spend making this “craft”
3. Write down that figure. This will be your weekly cost of labor. So if you need to make $10 per hour working 40 hours per week the cost of labor would be $400.
4. Now you need to calculate the total cost of supplies that you need to make one finished product.
5. Then see how many products you can make in one week.
6. Then you multiply the cost of Supplies per piece by the number of products make in a week. (If your cost of materials per piece is $2 and you can make 100 products a week, the figure would be $200.00)
7. Now add this figure to your weekly labor costs. (in our example that would be $400 + $200 = $600.00
8. Now divide this figure by the number of products that you produce in a week. So $600.00 labor/materials divided by 100 finished products a week would be $6.00 per piece.
9. If you will be wholesaling your product, you then multiply the per piece number by two. This would then give you a retail price of $12.00 per piece.
If the resulting price that you get is more than a similar product on the market, you may need to reduce it by cutting the hourly price. You can do this by using less expensive materials or by not being a “Total Perfectionist” and increase your production time. This concept goes both ways. If you see that your price is a lot less than similar products you may want to raise your price.
Just a little Tip:
Let’s say that you are making a Handmade Greeting Cards. If you use adhesive tabs to put your card together, keep in mind that you do not need the entire 1000 tabs for one card that you make, so you will need to calculate how many tabs that you need and divide it by the total cost of your 1000 tab package. This also goes for embossing powder, how many handmade greeting cards can you make with one container of embossing powder, same goes for embossing pens, glitter, etc.
*And this final cost per piece that we figured out was only for labor and materials. You may also consider adding into that price the cost for marketing your product. That could be the fee for your craft show, online selling, web sites, etc.
With all this pricing info that was just shared, just remember to:
Have a Great Day and don’t forget to leave time to Craft!
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