How to price your handmade items
Are you looking to start selling your handmade creations? There’s a few things to think about when considering how much to sell your products for.
Are you selling to cover costs or profit?
Selling items at a lower price will mean you can often sell at a higher volume. As long as it is advertised, you can also explain that lower costs may mean the item comes with imperfections while you practice.
Friends and family can be your biggest adverts so think about possibly giving some items away for free in order to spread word of mouth and get people interested in your products.
If you’re confidant that your product is ready to be sold to the public and is high enough quality; take in to consideration some of the following points.
Is anyone else selling it?
How unique is your product? Are there other sellers local to you selling something similar to yours?
Take a look at local craft fayres, Facebook Marketplace and other online platforms like Etsy, to see how much people are pricing similar products for.
Can you make your product unique or personalised?
If there’s others around you selling similar products, how can you make yours stand out? What is your unique selling point (USP)? Can you personalise it?
Unique or personalised products can be marketed at a higher price.
How much did it cost to make?
Add up the cost of producing your item. Think about things like:
- Cost of raw materials
e.g. resin, pigments, glitters - Cost of tools
e.g. your safety equipment like gloves, goggles and respirators, moulds, measuring cups, scales, sandpaper - Electricity costs
Do you use a heat mat, dehumidifier or need to heat your craft space while you’re working? - Packaging costs
Can you recycle packaging? Amazon is famous for over packaging. Can you make use of good quality boxes and protective packaging? - Shipping costs
Shop around. One method might be cheapest for smaller items where as heavier things may be best shipped with a different company. Can you give your buyers discounts for bulk orders? That’s always attractive and a good way to upsell. - Your time
This is often the most difficult to price. Did your product take 5 minutes or 5 days to produce? Your time comes at a cost that only you can decide.
Are there any selling fees?
Do you need to pay for your table at a craft fayre? Are you selling on a platform like Etsy that has significantly higher fees or are the sales all yours to keep? You may need to adjust your price based on where you are selling your products.
Do you need to pay public liability insurance?
Many craft fayres or shops will require you to hold a Public Liability Insurance Certificate. This will cover you against any accidents that occur to the public while around your stall or when buying items. It may also protect you against theft or damage to stock.
Levels of cover will vary and there are lots of comparison sites that allow you to purchase one off or annual cover.
Do you need to conduct electrical or safety testing?
Items that are electrical or are being sold as toy or children’s clothing, along with things like candles and perfumes, will be required by law to undergo safety testing before they can be sold to the public. A quick google will tell you what the regulations are for your country.
Do you need to pay tax?
Craft sellers can often keep 100% of their profits under a certain amount per year. You will need to check the regulations for the country you live in. If you need to pay tax, you will need to factor this in to your sale price. If you are unsure, always seek legal advice for taxes and selling.
Time of year
Do you have seasonal items that you can sell? Things like Christmas decorations or Easter goodies, can be sold at a much higher mark up closer to the holidays. Think about this when making special offers or if you are attending an event with a particular product in mind that you need to sell.
Remember, the competition will be thinking about this too. Always keep an eye on what is selling around you too.
Summary
It seems like there is a long list of things to think about but once you have worked out some reliable average costs, it will become quicker and easier to know how to price your handmade products.
