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4.  Pricing Strategy - How I Calculate My Handmade Prices 

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# Pricing Strategy - How I Calculate My Handmade Prices

![CraftyKaren](https://api.dicebear.com/7.x/avataaars/svg?seed=CraftyKaren) 

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 38

## Replies (2)

![VintageVicky](https://api.dicebear.com/7.x/avataaars/svg?seed=VintageVicky) 

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. 

11

![JewelryJen](https://api.dicebear.com/7.x/avataaars/svg?seed=JewelryJen) 

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. 

9

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