Are you thinking about starting your own Handmade craft business but not sure what to do? Maybe you are fluent in a diverse range of crafts. Check out these ideas for starting your own Handmade business.
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Why is it so important to get the pricing right? If your handcrafted product is not priced right, you will not make a profit. It will be tough to keep your firm running without a decent profit margin, and it will be hard to make a living from it.
Many skilled craftspeople base their labor costs on a rate of $12 to $20 per hour. To get the retail price, many people recommend multiplying the base price by 2.5 or 3. Do you wish to sell your homemade craft product in bulk? Then use this formula to pricing. 2 x Materials = Wholesale Price
Retail Price = Wholesale Price x 2 (or, in other words, Supplies x 4).
But wait you are not done yet! Remember to provide your hourly pay rate – how much do you wish to be paid each hour?
Simply multiply the number of hours it took you to create the product by your hourly rate to determine how much you should charge for labor charges (on top of the supplies cost).
One last thing to calculate is your overhead costs, this is not supplies but other little things like Electricity, fuel to the market, and tools you have bought to produce the crafts. If you are selling on Etsy then make sure to cover the Etsy fees as it is often overlooked.
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