You’ve made something you’re proud of. Then comes the question that can take all the fun out of it: what should you charge?
It’s tempting to look at similar products, pick a number that feels reasonable and hope there’s enough left over. But another maker’s price tells you very little about their materials, working time, fees or business goals. Your own numbers are a much better starting point.
Start with the costs you can see
Write down what goes into one finished product: materials, packaging, labels and any other items you use each time you make a sale. If you buy supplies in larger quantities, work out roughly how much you use per item.
Don’t forget the costs that happen when you sell rather than when you make. A marketplace fee, payment processing fee or postage you include in your price can reduce what you actually keep.
You don’t need perfect records to begin. A sensible estimate that you can update later is more useful than leaving a cost out altogether.
Give your time a place in the calculation
This is the step many makers find uncomfortable. If you spent two hours making something, those hours haven’t become free simply because you enjoy the work.
Think about the full process: preparation, making, finishing and packing. Decide what you would like to earn for an hour of that work and include it in your calculation. This gives you a starting point for testing whether a product can support the time it takes.
If the resulting price feels higher than you expected, that’s useful information. You might decide to make in batches, change a material, simplify a step or aim the product at a different customer. You can also decide that a particular item is something you love making even though it earns less. The important thing is making that choice with your eyes open.
Allow for the costs that don’t belong to just one item
Your business may pay for tools, software, market stalls, photography or a website. Those costs are easy to forget when you price a single product, but sales need to help cover them over time.
Try estimating your monthly business costs and the number of items you realistically expect to sell. You can then see what share each sale might need to contribute. This is a planning estimate, so revisit it as your sales change.
Check the price against real life
Once you have a draft price, ask:
What remains after materials, packaging, selling fees and other direct costs?
Does that amount cover the time I spend making it?
Can my sales also contribute towards my regular business costs?
Am I comfortable explaining what makes this product worth its price?
A calculation helps you see the numbers. You still get to decide what to sell, who it is for and whether the price works in your market.
You can adjust as you learn
Your first price doesn’t have to be your forever price. Record what an item actually costs, how long it takes and how it sells. When a supplier raises prices or you find a quicker way to make something, update your figures.
If pricing currently feels like a guess, start with just one product. List its costs, count your time and look at what’s left. Understanding one product clearly is a manageable first step towards pricing the rest with more confidence.
We’re currently trialling a handmade product pricing and profit calculator to make these steps easier. If you’d like to try it and share honest feedback, get in touch with Made to Measure Finance.