How to set your price
For most crafters it is best to start with the cost of the materials used. Add up all costs and don't forget the cost of basic materials. Also take into account indirect costs such as central heating for your hobbyroom or the fuel it cost to go to the local crafts shop.
Then there is the matter of the time you spent. It is difficult to charge all the hours you spent and sometimes this will not pan out, but do value your time. Don't think: I am retired anyway or I just made it to relax. Your time is worth something too.
Besides you have to make some sort of profit since you are going to make it into a business.
Rule of thumb
In general the rule is that you triple the costs of your materials and that will get you somewhere. So if it cost you $ 4.00, sell it for $ 12.00. If that seems like a lot to you, remember that as a business you'll have to pay taxes so you cannot take that whole 8 bucks as a profit.
Don't go too low!
Be sure not to price too low. You can always lower your prices if you want to.
Very often I see handmade products that are priced too low. Not only are you selling yourself short, but there is also the aspect of customers not taking you seriously. It's weird but when something is too cheap (especially handmade items), people think it's not worth their while.
To sum it up: you have to make your own estimate of your product and the market you want to sell it in. This is a strategic choice but think about it right from the start. It is harder to upscale your price at a later moment in time than to find the right market for your products right from the start.
© Armande Borghardt
Setting a price for your handcrafted products
This sure is a tricky subject and it always will be. Because when you are selling handcrafted products, you have to set a price on your own creativity and time. Plus the time you spent making it.
For a start: take a hard and honest look at your own work: how unique is it, is it wellmade, what would YOU pay for it. Look at it from all angles and ask friends what they would pay for it, without actually naming the price you had in mind. This will probably give you a handle on it.
Then there is the isue of reproduction, can it easily be duplicated or did it require a lof ot specialist skill. So compare your own products to similar products. That is, compare it to handmade items, not that machinemade stuff from China.
If you're trying to sell handknitted babysocks for 5 bucks and the ladies from the retirement home sell those for 3 dollars, then you may have a problem.
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