Pricing handmade products: how does the math work?
Are you overcharging or undercharging your handmade goods?
Is there a formula you can use to calculate what your price should be?
Find out all about the maths of pricing your handmade goods in this week’s episode.
– Mik, Deb, Jess
What we cover in this episode:
- Do the math before you start selling so that you are confident that you’re running a profitable business;
- Charging your products based on the minimum wage or higher;
- Expenses that are often ignored which should be included when computing for your prices;
- Why formulas for pricing your handmade products may not always work for you;
- There’s only one basic universal formula for pricing your products which is cost + markup = Price;
- Defining the elements that goes into costs;
- Why it’s difficult to calculate labor costs and what factors to consider;
- Breaking down creative process can help you figure out your labor costs;
- How to charge for packaging and shipping costs;
- Tips to minimize your materials costs;
- When to know when you are able to buy your materials in bulk;
- What overhead costs means and some examples of it;
- Calculating and paying your own wage and why it’s important to take into account;
- How we handle our finances.