How to Price Handmade Products Before Your First Sale
You have the product idea, the supplies and the packaging. Now comes the question: how much should you charge?
To price handmade products, start with what one finished item costs—including your time.
Calculate your product cost
Add the materials and packaging used for one sellable item. If 12 jars cost $30, each jar adds $2.50 to your product cost.
Include labels, ribbon and other finishing touches. Small amounts matter when you repeat them with every order.
Next, account for your time. If making and packing an item takes 12 minutes and you value your time at $18 an hour, that adds $3.60 per item. Include time spent by friends or family helping you, too.
Check what your selling price leaves
Here is a fictional candle example at a $24 selling price:
Cost | Per item |
Materials and packaging | $6.27 |
Selling fees | $2.70 |
Time allowance | $3.60 |
Share of recurring business costs | $1.00 |
Amount remaining | $10.43 |
The example assumes local pickup and hypothetical fees of 10% plus $0.30 per sale. Use your own costs and fees.
That $10.43 remains after the costs shown. Taxes, refunds and other expenses can reduce what your business ultimately keeps.
Choose a price you can support
Compare similar products, including their size, materials and presentation. Your calculation shows whether a price covers your costs; customer response helps you decide whether the offer works.
If the numbers feel tight, review your packaging, materials or production time before lowering the price.
Use the First Product Pricing & Batch Planner to calculate your costs and test your price before your first sale.
Open the downloaded file in Excel and replace the highlighted example inputs with your own numbers.
Comments