Creative Income

The blog dedicated to all things crafty business!

  • Home
  • About
  • Giveaways
    • Win a Ticket to Snap!
  • Newsletter
  • Free eBook
  • Join our Facebook Group

The Pricing Formula: Getting it Right

May 24, 2012 by Maggie

Deciding what to price your craft products seems to be the one thing that puts a pause in many people’s plans. How much should you charge? You don’t want to put too high of a price on your work because you want to make sales and people have been pinching their pennies particularly hard these days. You also don’t want to undersell yourself either. You worked hard, you want to get paid fairly. What I’ve found that many craft business owners do is follow a formula to calculate how much they should be charging. I found this awesome formula on the Etsy blog.

The Pricing Formula:

Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail

Makes sense doesn’t it? Or at least it seems to. Here’s a little break down of the pricing formula:

Materials – this is exactly what it sounds like. The cost of your materials is an important part of what your price will be.

Labor – how much would you like to be getting paid an hour? This is how you would calculate your labor costs. Don’t pick a number out of thin air though. We’d all love to be making $100 an hour, but that’s not realistic. Do some online research and see how much a seamstress or a jewelry designer makes and hour, this will be your starting point.

Expenses – every penny you spend on your business should be accounted for in the price of your product.

To see a full break down of the pricing formula, check out the full article on the Etsy blog and get your items priced and on the market!

  • Author
  • Recent Posts
Maggie
Latest posts by Maggie (see all)
  • Real Life Sales: Getting Your Crafts Into a Shop - November 10, 2022
  • How to Make Money Blogging - November 3, 2022
  • Real Life Sales: Getting Your Crafts Into a Shop - November 13, 2021

Filed Under: Sales Tips Tagged With: pricing, Selling Online

Email Email Facebook Twitter Pinterest YouTube RSS

Subscribe to the Creative Income Newsletter.

Getting Started

5 Easy Steps to a Successful Handmade Business

Start a Handmade Business: Free CreativeLive Class You Don’t Want to Miss!

Categories

Craft Fair Tips

Pricing Your Handmade Goods for Craft Shows

How to price your items is a common source of confusion when handmade artists are starting to sell at craft shows. Not just business-wise (how much to … [Read More...]

Archives

Blogging

How to Make Money Blogging

Craft Fairs

Pricing Your Handmade Goods for Craft Shows

General Advice

7 Essential Tips for Accepting Credit Cards at Craft Shows

Getting Started

Starting a Business? Don’t Make These Rookie Mistakes

Organizing

Craft Fairs: Find Success, Make the Sale

Sales Tips

Real Life Sales: Getting Your Crafts Into a Shop

Prime Publishing Craft Group
Copyright © 2023 · Creative Income - A Prime Publishing LLC property. All rights reserved.

About Us Advertise Contact Us FAQs Privacy Policy Do Not Sell My Personal Information Subscribe Terms of Service Unsubscribe

Copyright © 2023 · Tidy Theme on Genesis Framework · WordPress · Log in