If you want to make money from your handmade goods then you are not alone. There are plenty of people out there who want to do this and it is actually easier to do than you might originally think. Of course, when you do start pricing your handmade goods then you need to take into account the cost for the materials. You will want to set this as a baseline, so you have a number to work with. If you set the price at this for your product then you will not lose money, but you won’t make any money for the time it took you to put the item together.
The next thing you need to do is figure out how long it is going to take you to make that item. If it takes around 10 minutes then you know that this will equal 6 an hour. You then need to work out how much money you would like to make an hour, without any cost for the materials you use.
This will give you the wage you want, the cost for each item and the amount you can make an hour.
1 x Basket = 10 Minutes to Make.
1 x Basket = $5 to Make.
1 x Hourly Rate = $15.
Times the basket price by 6 to get your hourly material rate, which would be $30. Then, add your hourly rate of $15 to make $45. You then divide this by 6 to get the basket cost plus your own wage per basket which would make each one $7.5 per basket.
So as you can see, working out the price of your handmade goods is relatively easy, and you would be surprised at how cost efficient you can make your own goods so you can take in more profit.