How to Price My Crafts for Wholesale

Turquoise crafts fetch higher prices because the gemstone is hard and richly colored.

A passion for crafting may blossom into a fulfilling money making venture, but you must know how to price your wares to turn a profit while building a following. In preparing to sell your creations wholesale, you should incorporate the cost and labor of your materials, as well as a profit price, to keep your business growing and sustainable. A career as a crafter doesn't mean living in poverty if you set your prices correctly from the start and place value on both your time and your goods.

Instructions

1. Add up the cost of your materials. For example, if you made a pair of a necklaces and paid $10 for your gemstones, $5 for rope or chain chain, and $1 for your clasp, the total you spent on materials was $16. Don't forget to add taxes, if you paid any. If your number is not even, round up to the nearest dollar.

2. Tally the number of hours it took you to make your piece of work, then multiply that number by your hourly rate. If you would like to be paid $10 per hour, and the necklace took two hours to make, then add $20 to your materials total. Now you're at $36

3. Factor in your profit. The crafting website What The Craft recommends adding on a profit to your hourly rate. Your profit may be as low as $5 per item. So, using the necklace example, when you add your $5 profit to the cost of labor and materials, your new total is $41. This number is your wholesale price.

Tips & Warnings

• As you become more experienced, you may find that you work faster, so a project that used to take two hours to complete now takes just one. You don't need to adjust your prices just because you're working faster. Instead, consider it a boost in your hourly rate. Also, consider raising your hourly rate as your handcrafted works gain prominence.

• Entrepreneur magazine suggests that those just starting out should offer items with varying price points to attract a range of buyers. Although you don't need to sell as many high priced items to make a profit, it may be difficult to make many sales. By having a selection of low-to-mid priced items and a few high priced pieces, you can attract a broader following.

References

• What the Craft: Pricing Your Handmade Goods
• Entrepreneur: How to Sell at Craft Fairs and Shows