Good morning! Today we will touch on a topic that is... to put it mildly, controversial for many creators. It's a bit of a taboo subject around which many myths have arisen: how to price your work?
I know there are many schools of thought. I also know how easy it is to fall into the trap of lowering prices out of fear that "no one will buy it for that much." I used to get comments like that.
That's why today I'll tell you how I do it, what my philosophy is, and what my simple pricing formula looks like.
⛔ Before We Get to the Formula: The Most Important Declaration
Before I give you specific numbers, you need to understand my starting point, because it changes absolutely everything.
I treat handicrafts as a hobby.
I am not a person who supports themselves from this "full time." I don't run workshops, I don't have pressure to sell anything. Of course, it would be nice if it became a larger part of my income someday, but for now... I don't care about high volume sales.
I do it for myself, for relaxation and well-being. And that is my greatest privilege in the context of pricing.
🗣️ "Nobody will buy that from you at that price"
On videos that gained popularity, I regularly read comments: "you'll have to lower prices," "this won't sell."
And you know what? Maybe that will happen. And I have no problem with that.
I can simply not sell it. If someone buys it – cool. If not – also cool. I don't feel pressure to fit into the market at all costs. If I were in a different financial situation or if this were my main source of income, probably (knowing my tendency to be a "people pleaser") I would lower my rates.
But I'm not. So I don't lower them.
🎯 My Client is Not a "Wholesaler"
Consequently, I have a completely different target group. I'm not aiming for a client who searches Google for "beanie" and filters by the lowest price.
I'm looking for gems. I'm looking for people who watch me, maybe like me, appreciate handicrafts, and want to have something unique, something no one else has. One such valuable client is better than ten random ones.
🧮 My Formula for Pricing Handicrafts
Okay, let's get to the specifics. My system is simple and based on one "golden thought" that I always have in the back of my mind.
Step 1: Time
This is the basis. When I create something with the intention of potential sale, I always record the work time. I start a stopwatch and meticulously note how many hours it took me to make the product.
Step 2: "Make-it-worth-my-while" – Hourly Rate
This is the most important point. I follow the rule:
Price it at an amount that makes you WANT to do it.
I don't give myself the lowest hourly rate. Usually, it is a comfortable rate (e.g., 35-40 units of currency). It's not a "super inflated" rate, but it's comfortable enough that fulfilling the order gives me pleasure, and isn't an unpleasant duty that I force myself to do because "I asked for too little."
Step 3: Cost of Materials
An obvious point. I add the full cost of used materials (yarn, buttons, tags, etc.) to the labor costs.
Step 4: The "Uniqueness" Multiplier (x 1.2)
This is the "extra" people often ask about. I take the sum from points 1 and 2 (Time x Hourly Rate) and multiply it by 1.2.
What is hidden in this multiplier?
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Sales-related costs: Marketing, taking photos, shooting videos, packaging, managing the online store. This is also time and work.
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Value of uniqueness: This is handmade. Something created from the heart, unique.
I don't intend to give this up. I believe it is special, and if I don't treat it as special (by lowering rates), no one else will either.
The Final Formula:
Price = (Number of Hours x Hourly Rate) x 1.2 + Cost of Materials
My philosophy is simple: I price my work fairly and high enough to derive joy from it. I don't chase the mass customer and I am at peace with the fact that my products are not for everyone.
I strive to find people who will treat my work just as exceptionally as I do.
And you, how do you price your projects? Do you have your own "golden rule"? Let me know in the comments!