Pricing Strategy - How I Calculate My Handmade Prices

CraftyKaren

8 months ago

My formula: (Materials x 2) + (Time x Hourly Rate) + Overhead + Profit Margin. Do not forget to include packaging, shipping materials, and Etsy fees in overhead. Underpricing kills shops. Know your worth!

2 replies

Replies (2)

VintageVicky·8 months ago

This pricing formula is so important! I underpriced for my first year and burned out. Now I aim for 50% profit margin minimum after ALL costs. If the market will not bear that price, it is not the right product.

JewelryJen·8 months ago

Do not forget to include your time for customer service, packaging, shipping trips, and photo shoots. It all adds up! I track my time for a week each quarter to make sure I am actually paying myself fairly.