Pricing Your Handmade Items: A Simple Guide for Makers

One of the biggest challenges for small creative businesses is knowing how to price their work. Set your prices too low and you’ll struggle to make a profit. Set them too high and you might put off potential customers. The good news is there’s a clear way to work it out so your prices are fair for both you and your buyers.

Why Pricing Matters

Pricing isn’t just about covering costs. It affects how people see your brand. A well-priced item shows value, professionalism, and confidence in your work. Customers want to feel they’re buying something special, not something cheap.

The Basic Formula

Here’s a simple way to calculate your prices:

Materials + Time + Overheads + Profit Margin = Retail Price

• Materials: The cost of everything used to make the product (fabric, clay, beads, yarn, packaging).
• Time: Pay yourself an hourly rate for the time it takes to make the item.
• Overheads: Business costs like tools, electricity, website hosting, market stall fees, or Etsy/Shopify charges.
• Profit Margin: Add a percentage to make sure you can grow your business and reinvest.

Example Calculation

Imagine you’re selling a handmade candle:

• Materials: £4 (wax, wick, jar, fragrance, label)
• Time: £10 (1 hour at £10/hour)
• Overheads: £2 (share of website fees, electricity, tools)
• Subtotal: £16
• Add 30% profit margin: £4.80

Final Price: £20.80 (round to £21)

This way, your price covers your costs, pays for your time, and leaves money to grow your business.

Don’t Undervalue Yourself

Many makers start by charging too little because they feel guilty charging for their time. But if you don’t value your work, customers won’t either. People pay more for handmade items because they want quality, uniqueness, and a story behind the product.

Wholesale vs. Retail

If you plan to sell to shops, remember that wholesale prices are usually about 50% of retail prices. That means your retail price needs to be high enough to cover both retail and wholesale sales.

Top Tips for Confident Pricing

• Research what similar makers are charging, but don’t copy—use it as a guide.
• Be consistent with your pricing across markets, online, and social media.
• Review your prices every 6–12 months to reflect rising material and business costs.
• Don’t apologise for your prices—stand by the value of your work.

Be Mindful and Fair to Yourself

Pricing your handmade items can feel tricky, but with a simple formula and a confident mindset, you’ll be able to set prices that cover your costs, reflect your value, and build a sustainable business. Remember: you’re not just selling a product, you’re selling your skill, creativity, and time.