27 July 2010

How much should I sell that for?

This is a big question, and one I have asked myself and have been asked many times before.  I think the key to pricing your work is to get a figure that feels comfortable for you and there are several ways to find that perfect price… here is the way I do it.
I usually start by asking myself what would I be comfortable getting paid to part with the product I have just made.  You will always have some sort of figure in mind of what you think your item is worth and this is a good place to start from.

It is always a good idea to determine what your actual cost is to make each of your items.  It is important to think of everything you used in every step of making of your product.  If you used a squirt of paint from a tube that cost $12, you would have to make a guess at how much that squirt cost… maybe $1 - $2 depending on the size of the squirt and the tube.  As well as the materials used to make your product you also have to include the selling costs… packaging, tissue, plastic envelopes, bubble bags, postage, advertising stickers for your packaging, and if your selling online banking fees and site selling fees etc....  Now you have a base cost you need to work out how much to add for retail sale.  Multiplying the cost by 2.5 - 3 is a good formula to start with and this will give you a possible retail price.

Once you have a selling figure it is a good idea to do a little research on what others are selling similar products for in a comparable market… you don’t want to under sell yourself or price yourself out of the market, but you do need to be competitive and it is important to know what your competition is is doing.  
Another thing to think about when pricing your work is the type and quality of the products you use.  Buzz words at the moment are eco-friendly, green and organic etc… if you are using any of these types of things it is a good idea to really advertise this in your product descriptions and let your customers know that they are buying quality that it is priced accordingly.

I have a few varying price ranges for different items that I sell to suit the budgets of all my customers.  I wouldn’t want to put a potential buyer off because I didn’t have something in their price range.  Another thing I do is I only use odd numbers in my original painting prices (I like odd numbers way more then even ones).  It may sounds silly but it came in handy one day when there was a discrepancy in a selling price with a gallery owner… she was trying to underpay me for a painting and I knew it was wrong as it contained an even number.


  1. you forgot the most important thing - your time. IF crafting is just a teeny tiny hobby maybe time doesn't matter, to you. but i always think it's worth account for the time you spend thinking up your creation and making it. Maybe early on as you develop your skills you might not be able to pay yourself much of a rate, but i think it's worth considering

  2. I was given a formula by an accountant a while back that I use as my starting point. Take your expenses, add 30% of that cost, then double it. Great in theory but I almost always find the figure comes out too high and end up taking quite a big chunk off. I only count in my time if I'm designing specifically for someone, a one off image. The hours, even days, we all put in to come out with just one item often makes it impossible to include anything for the time in the product price, It really isn't right, we must do it for love! <3 It will be interesting to hear what others do.

  3. This is great Katherine, I must revisit this pricing area. cheers Marie

  4. thanks for the advice pricing handmade is always tricky

  5. multiplying the cost of your materials by 2.5 - 3 is your time allowance... sorry I didn't specify that.

  6. I'm also aware that I may end up selling wholesale any day, so I make sure that at half the price I'm still making money on an item. Somethings wouldn't have enough margin for wholesale, but most of my items will.

  7. there is a really good formula over at crafty business as well

    I found as i developed my skills what i made was of a higher quality, i also developed a niche and so with that i found i could raise my prices to better account for my time.

  8. Thanks for sharing the link to Crafty Business Sue... I agree with you, over time as your skills and process develop you can raise your prices to represent this.


We love hearing what you have to say, please feel welcome to leave your comments...