I make my products by hand; how do I price them and count my own time as a cost?
Add your labour to the materials in the product cost field. A piece with materials of 35 that takes two hours, at 30 an hour, costs 95. With shipping of 18, 3% fees and a 20% margin its price is 146.75, while pricing on materials alone gives 68.83.
Why time gets forgotten
When you make things by hand, you pay for materials out of pocket so you see them, but your time never leaves your bank account so you do not. That is why many makers price on material cost and call whatever is left 'profit'. Much of that 'profit' is really your wage for the hours, and divided by those hours it may be less than any other job would pay.
Step by step
- Measure the real time to make one piece, including prep, packing and photos if done per piece. You can log several pieces with the Timesheet calculator and take the average.
- Set an hourly rate you consider fair for your skill.
- Multiply the hours by the rate and add the result to the material cost.
- Enter the total as the product cost in the Selling-price calculator, then shipping, fees and margin.
Materials only: cost 35, shipping 18, fees 3%, margin 20%: price 68.83, profit 13.77.
With two hours at 30: cost 95, price 146.75, profit 29.35 on top of your wage.
At 68.83, all you keep for those two hours is 13.77, under 7 an hour.
Wage and margin are different things
The wage pays you for your time, as if you were an employee of your own business. The margin is the business's profit: it funds more materials or tools, or covers a spoiled piece or a slow month. Put your wage inside the margin and every price cut eats straight into your pay without you noticing.
If the price comes out above what the market pays
That is normal the first time, and it does not mean the maths is wrong. It means you have to choose: work faster by making batches, cut material cost by buying in bulk, focus on pieces where people value handwork and pay for it, or knowingly accept a lower wage. Try each option in the calculator and see where the price lands. What matters is knowing what you are giving up rather than finding out a year later. After selling, check your real margin with the Profit margin calculator.
Common questions
I make ten pieces in one batch. How do I count the time?
Divide the whole batch time by the number of pieces and add each piece's share of the wage to its cost.
Should I count my tools and equipment?
If you like, estimate their wear per piece and add it to cost, or let the margin cover them.