How To Price Your Handmade Products
One of the most common mistakes that I see new Etsy sellers making is setting their prices too low.
I know that it can be scary to price your items when you're first starting out. Especially if you are a little insecure as a new business owner, there is a tendency to be like, "I've never sold anything before so I'll just take what I can get." But undervaluing your work is bad for a few different reasons:
- It prevents you from ever being able to make a living from your business.
- It makes your work seem "cheap", and it makes potential customers question the quality.
- It hurts the handmade community as a whole (people who are pricing their work fairly will seem like they're trying to "rip people off").
When you sell a handmade product, there are a few different factors that go into play when determining the price, but the main two are materials and time. So, when pricing your items you need to know:
- The total cost of the materials required to make the product
- The total amount of time required to create the product
- Your hourly rate
This number can increase as your brand and demand increase. If you're a beginner, you might have an hourly rate of around $8 - $10. If your demand is high, you could charge as much as $30 - $50 / hour.
Multiply your hourly rate by the amount of time that it takes you to make the product, and add that number to the total cost of your materials. Double that number to get your wholesale price, and double your wholesale price to get your retail price. Pretty simple, right?