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Hello,
A few of my crafter friends often asked me how to price their handmade products when they just started out. It is difficult to determine what price is fair price. Especially with the booming e-commerce, the competition is fierce out there.
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| trifold women's wallet |
You want to make things that sell, but on the other side you also want to make a decent profit so that you can make the business going and growing without draining your personal resources.
I'm no expert here, but I've learnt my lesson and I read a lot of blog post and books about pricing handmade. Especially when people around you (your social media followers, friends, etc) seems to think that handmade should be cheaper,because they tend to compare your product with ones in Amazon, Ebay etc. Well, send them to Amazon and Ebay!
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| Ooak Handmade Wallet |
But they won't get the same high quality product as yours, which everything is carefully chosen, it's unique, one of a kind and the whole thing is carefully made without sacrificing a child or cheap labor somewhere in a dingy factory.
But how to run a profitable handmade business without draining your personal resources? Price them correctly! Remember, your handmade is not only the material cost, but the time your spend making them, taking photos, marketing, your internet connection, not to mention your mental torture dealing with difficult customers :D. Well, You may want to read this post from Creative Hive on How to Pay Yourself in Creative Business and Pricing Handmade Guide.
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| Bifold Wallet |
Now, I am not math genius here. My hubby dear made a handmade calculator for me, which I am still using it this date. You can download the file HERE if you want. It's in Indian Rupees but you can use it for any other currency I suppose.
The rows highlighted with light blue is adjustable. You can adjust your margin percentage for Wholesale and Retail Price too. You can even add a row or two. The labour cost/hour is included the overhead expenses .
I also included Etsy Pricing formulae in case you want to start selling on Etsy too. The USD exchange rate is adjustable. If you're using Paypal, you may want to check paypal exchange rate, usually 4% lower than market rates). The Etsy Fees paypal fees are recently increased. So, do your homework before inputting the number.
I hope this will help you a bit with your handmade business and when you want to start your business.
You can download the HANDMADE CALCULATOR for free and start making profit :)
Happy Crafting!!
Elvira
