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

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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.