How to Price Your Handmade Products
After weeks or months of testing and experimenting, you already have your handmade product. It's perfect and it's ready to be sold. You have chosen your e-commerce platform. But you don't know how much you should sell it.
It's a very common problem for DIYers that have just started to turn their hobby into a business. If you haven't decided whether you should start selling your handmade products, check out our blog on why you should do so here.
The biggest mistake you could ever make is to undervalue your handmade product. Why bother doing it as a business if you don't make a profit? And what about the time and effort it took you to make them? What about the things in life you had to give up to pursue this dream?! What about the time you spent away from your children? What about the money you chose to spend on your trials instead of other equally important things? The list goes on...
Think about the following:
1. Who is your target market? Who do you think will like your products?
This is where you decide a price bracket for your product. Will it be cheap and affordable, mid-priced, or luxury priced? Research similar products in these different price brackets.
- Are they selling well?
- Which platforms do they use?
- How are they showcasing their products?
- What do you like/dislike about them?
2. What makes you different?
I'm a firm believer that every business has something different to offer if only the sellers take the time to meditate on it. This is simply because every person is different. We have different tastes and needs. Actually, you are a perfect example of your target customer. So ask yourself what unique factor you have to offer and highlight that when selling your products.
3. Finally, what is the cost of making your product?
Calculating can be tricky. If you're not detail-oriented, you might forget to include this and that into your cost.
You must include and consider things like your overhead costs, your own salary, shipping, and transaction fees from your payment gateways or e-commerce platform.
Here is a template we created to help you calculate your cost AND an estimate of your retail and wholesale price:
We've included notes in the form to help guide you. This is just a guide. Ultimately, you are the one deciding how you price your products!
Let us know your thoughts below!