Tuesday, 18 January 2011

How to price your handmade items

This is probably one of the trickiest, and most important aspects to get to grips with when you're setting up or growing an online shop.

I found a great article on this topic which I thought others might find useful to others - all about pricing your handmade jewellery.

It all comes down to working out your wholesale price first, which could be simply defined as:

Materials + Overheads + Labour + Profit = Wholesale Price
s?  Well basically, its the following simple sum:
Remember when you're pricing materials, to include the postage and packaging costs that you incur from your suppliers! It all adds up.

Overheads could be the price of a craft fair table, or display, a tripod for taking your fabulous pics.. etc.....

Do take a look at the original article for more detail - well worth a read.

Some other interesting links on this topic are:


At the end of the day, I think most of us are a little guilty of under valuing ourselves and the items we lovingly make over hours, or even days. Pricing our handmade wares at a fair price, taking into account the effort that they take is the way forward. Lets face it, I bet we have all seen some items that just seem "too cheap" and it puts us off making the purchase.

 I'd love to hear other people's views on this subject, and if you have any other useful links please share them in the comments below.Overheads + Labour + Profit = Wholesale

How to work out wholesale prices

So just how do you calculate these magical wholesale prices for your jewellery designs?  Well basically, its the following simple sum:

Materials + Overheads + Labour + Profit = Wholesale Price

1 comment:

  1. When I first started out I spent a little while testing out my products and prices on friends - must have been my background in marketing - I needed to know if they would buy my jewellery for themselves or as gifts and how much would they be prepared to pay.

    Luckily they liked what I did and we pretty much agreed on the prices. I deliberately keep my price points simple: £3.50, £5.00, £7.50 & £10.00 (easy for customers to understand and me to add up!)

    My tip is to focus on keeping the price of your raw materials down. I know that I want to be able to multiply my material and packaging costs by 3 and still arrive at my retail price. I'm happy with my margins and it is good discipline when buying supplies.