Pricing Handmade Items: A Fair Formula That Works
Why Pricing Feels So Hard
Underpricing is the #1 mistake new makers make.
It’s tempting to price low to compete, but that usually leads to burnout.
The goal is a price that covers:
- Your material costs
- Your time
- A fair profit margin
- Any fees or overhead
The Maker Pricing Formula
Price = (Materials + Time x Hourly Rate) x Markup + Fees
| Element | Description | Example |
|---|---|---|
| Materials | All raw materials used | $5 vinyl, $3 blank, $2 packaging = $10 |
| Time | Time to make the item | 1.5 hrs @ $20/hr = $30 |
| Markup | Profit & business sustainability | (Materials + Time) × 1.5 |
| Fees | Etsy fees, transaction fees, taxes | ~10-15% estimate |
Example Price:
($10 + $30) × 1.5 = $60 → add 15% fees = $69
Hourly Rate Guide for Crafters
| Experience Level | Suggested Rate |
|---|---|
| Beginner | $15–$20/hr |
| Intermediate | $20–$35/hr |
| Skilled Artisan | $35–$50+/hr |
Start where you’re comfortable, but don’t forget:
Your skill is valuable.
Include These in “Overhead”
- Equipment (Cricut, printer, etc.)
- Supplies that don’t go into the product (blades, glue, etc.)
- Studio rent or utility share
- Website/shop fees
- Packaging & labels
Tips for Better Pricing
- Round up to the nearest whole or appealing price point
- Use tiered pricing for sets or bundles
- Offer limited editions to test higher prices
- Check competitor pricing, but don’t copy, compare quality too