6 Steps to Pricing Your Handmade Products

6 Steps to Pricing Your Handmade Products

Whether you make cute little bracelets, moisturizing cosmetics, aromatic fragrances, or decorative furniture one thing is for sure, our handmade products need to be priced correctly so that you can make a profit. So in this article, you’ll learn how easy 6 steps to pricing your handmade products can make pricing your products a breeze. 

make up items blushes, brushes, eyelash crimper, powder, and red lipstick making jewelry essential oil perfume in clear bottles

 

I have a video titled How to price your candles/products where I give you an in depth information on how to research your market to come up with a new product and pricing that product. However, in that video I didn’t break down the information on how to actually price your products. 

You can watch that YouTube video by clicking here

how to price your candle youtube thumbnail


So in this article, I will dissect 6 steps on how to adequately price your candles or any handmade products in your shop and make some profit. Although, there's not a formula to pricing your products for your handmade business, I have created an easy to us formula for pricing my products. The mathematical formula is very easy to use. Let’s dive in with step 1. 

STEP 1

  1. Make a list of all your items you use to make that one product. So for example if you’re making a candle then your list will look something like this 
  • Wax 
  • Jar or tin can 
  • Wick
  • Wick sticker 
  • Fragrance oil
  • Product box 
  • Shipping box 
  • Product labels
  • Warning sticker label
  • Tissue paper (optional)
  • Thank you card 
  • Free gift (optional)
  • Packaging materials
pillar candles

STEP 2

  1. Price you purchase each one with its metric (oz, ml, l, lb, cm) then convert to the metric you like to use or are comfortable using 

  • Wax (Virgin Coconut Soy 110 lbs) $313.90 
  • Candle tin can (120 case) $504.00
  • Wood wicks and clips (200 pc) $52 
  • Wick stickers  1000 a roll for 23.94 
  • Fragrance oil golden oud myrrh 1gal/3.78L/127.81oz/7.98lbs $491.42 
  • Product boxes 36 case $568.80 
  • Wick warning sticker labels 1000 count for $21.40 
  • Product labels 500count matte $78.50 
  • Thank you card (4x6 for 200 count) $176.52
  • Packing peanuts are 49cu. Ft. $52.50 

STEP 3

  1. Divide the total price of the item by the quantity of items you have to get the value per item. In other words, how much will one piece of that item cost? 

It’s very easy to calculate the price per item quantity especially if the company that you’re purchasing from doesn’t break that information down for you. Well, first you divide the cost of the item 504.00 over the quantity total. So in this case it will be the wax $313.90/120 which gives you 3.78 per tin can. If the price per item wasn’t already given to you by the company. 


  • Wax (Virgin Coconut Soy) $156.95 (55 lbs each) x 2 for 110lbs = $313.90 or $2.85 per lb or .18 per oz
  • Candle tin can 9 oz (12 per case X 10) 120 pc case $504.00 or $504/120 = $4.20 per tin can
  • Wicks whisper booster .02x.5x5L (200 pc) $52  or .07 wick clip & .26 wick
  • Wick stickers 1000 a roll for 23.94 +4.50 shipping = $28.44 or .03 each 
  • Fragrance oil golden oud myrrh 1gal/3.78L/127.81oz/7.98lbs $491.42 or $3.84 per oz
  • Product boxes 15.80 set of 4, 36 case $15.80 = $568.80 or $3.95 per box
  • Wick warning sticker labels 1000 count for $21.40 +4.50 shipping = $25.90 or .03 each.
  • Product labels (3x3 labels 500 count matte) $78.50 + $18.25 ship + $6.77 tax = $103.52 or .20 each
  • Thank you card (4x6 for 200 count both side printing) $141.11 + $23.86 shipping + 11.55 tax =176.52 or .88 each
  • Packing peanuts are 7cu. Ft. $17.00(2) $34.00 + $18.50 shipping = $52.50 or 3.75 each cubic feet
candle display

STEP 4 Optional

  1. Optional adding your overhead (electricity, ink, papers, all other miscellaneous items you use to run your business continually that are a must to keep your business running (this will be more when your business grows) And right now you may not know how much after a year in business you’ll know more or less how much this should be. This can also include how much you would pay yourself an hour and then divide that time on how long it will take you to make one of that product. For this scenario we will not be adding this step.

STEP 5

  1. Add all your items and this will be the total price to make one candle. You can also in this step add a flat fee for shipping or let customers purchase shipping on their own in your website.

GRAND TOTAL of $2,280.61 to purchase and make 120 tin can 


  • Tin can 4.20
  • Wooden wick .26
  • Wick clip .07
  • Soy wax 2.85 lb or .18 oz or (1.80 oz to make one 9 oz tin can)
  • Fragrance Oil 3.84 oz
  • Boxes 3.95
  • Warning labels .03
  • Wick stickers .03
  • Product labels .20
  • Thank you cards .88
  • Packing peanuts 3.75 

Without adding a flat rate shipping, the price to make one candle is $18.98. Easy right!

young woman with money fanning herself and wearing dark shades with red bold lipstick and a white dress

STEP 6 Optional

  1. After you have the total price to make one candle, you can either multiply that total by 2,3,4,5 or whatever amount of profit you want to make or how much you think your item is worth. Some people times their product by 4 for retail and times 2 for wholesale but this depends on how much your item costs you to make and the perceived value of your product and also your target audience. Or the other alternative is to download an app called percentage calculator where you can use it for many things but I primarily use it to markup my prices and know exactly what my percentage will be from that item and how much money I’ll make by selling it.

So going back to our candle example;


If you want to make a profit you multiply the total cost to make one candle by 2 ($37.96), or 3 (56.94), or 4 ($75.92), and so on.


So, the total candle price will depend on how much money you spent for your supplies. The less money you spend on supplies the least amount your overall candle will be and the most profit you can make. 


Therefore, how much money should you really price your candle? Let’s say that you’re planning to sell your candle at $37.96 and let’s say you sell out in two weeks. You’ll make $37.96 x 120 candles = $4,555.2 and obviously you doubled your investment. 


However, this doesn’t account for taxes, the overhead, and fees associated for running your online business and certainly not if you have a brick and mortar store. But on the bright side if a large portion of your earnings goes back into your business, you’ll restock and spend half of what you started with until your profit will outweigh the cost of purchasing materials for your business. 


I hope this article 6 steps of pricing your handmade products helped you in your business. Let me know in the comments if you have a better method. 


You can also check out my video where I explain it in full detail here. I could’ve probably had this sentence in the first paragraph but sometimes reading the article and then watching the video gives life and meaning to learning. 


Come back next time for more business tips.

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