With all the ETSY backlash about free shipping, I thought this video was well worth the feature.
Jeff from Standley Handcrafted has free shipping covered with this video tutorial on how to price your candles to cover your shipping costs. This is a great way to stay in the Handmade candle market.
Why is it critical to get the pricing right? You will not earn a profit if your handcrafted product is not priced correctly. Without a solid profit margin, it will be difficult to keep your business going, and surely impossible to earn a living from it.
Many professional craftsmen base their labor expenditures on a figure of $12 to $20 per hour. Many people propose multiplying the base price by 2.5 or 3 to determine the retail price. Do you want to offer your handcrafted craft product on a wholesale basis? Then, for pricing, use this formula. 2 x Supplies = Wholesale Price
Wholesale Price x 2 Equals Retail Price (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, tools you have bought to product the crafts, etc, If you don’t account for everything you will run at a loss.
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