Think Crafts Blog - Craft Ideas and Projects - CreateForLess

It can be very confusing and frustrating to price your own craft items. The main issue when selling a handmade item is that you must cover your material/supply costs and you should earn something for your time and labor. This means you must keep a record of your material costs and the time spent making the item. Fair pricing should mean that you as artist or craftsperson (as well as your customer) are satisfied with the final selling price.

Did you provide your best work? Did you use quality supplies to make your craft? Did you put your love of crafting into each piece of work you create? If you are answering, “YES,” then you deserve ‘fair’ payment for your work and creativity. Sometimes it helps to ask a friend or spouse to help you with pricing. An objective opinion from a friend or spouse can mean a lot and often you will under-price your crafts whereas an objective voice will not.

There are many formulas for pricing your crafts when you are selling occasionally (not full time). The first and easiest is to 2X, 3X, or 4X the cost of materials. If a necklace’s materials add up to $1, then you may choose to sell the necklace at $2, $3, or $4.

A second method is to check out what similar items are priced. Visit a gift shop, craft show, or look through catalogs. If you see similar jewelry selling for $4.50, then you may choose to price according to the marketplace.

Another method is ADD the cost of materials to your labor cost. The cost of materials for your necklace was $1. You wish to make $10 per hour while working. You can make 5 necklaces in an hour meaning the cost of labor was $2. Added together (material cost plus labor) these factors will give you a selling price of $3.

Often it can be a combination of formulas that will give you a realistic selling price and then pay attention to how your customers react to the price on the tag. Do customers grab 5 at a time? This could mean you hit the right price or may even be able to raise the asking price. Do your customers quickly put the necklace back acting like their fingers got burned just touching it? It might be time to re-evaluate your prices. Don’t make pricing an obstacle to your selling. Learn the pricing formulas and learn your customers’ spending budgets!