Alright, let’s talk about one of the most confusing, uncomfortable, and often awkward parts of running a handmade business: pricing your products. If you’ve ever stared at a fresh-from-the-oven batch of polymer clay earrings and thought, “How much should I actually charge for these?” you’re not alone.

Been there.

The good news? You don’t have to guess, lowball yourself, or Google “how to price handmade products” every time you launch something new. This post is your friendly guide to creating a pricing strategy that makes sense and makes you money.

Whether you sell online, at craft shows, or just to your coworker who keeps saying, “You should totally sell these,” let’s walk through some best practices together. And yes, there’s a free calculator. And a Notion template for when you’re ready to get serious. More on that at the end.

Pricing Basics: What Goes Into Your Handmade Product Price?

The Core Formula (Math That Actually Helps)

Let’s not overcomplicate it. Here’s the basic pricing formula:

Materials + Labor + Overhead + Profit + Markup = Price

Let’s break that down:

• Materials: Not just your clay, but jump rings, packaging, tissue paper — all of it counts.  
• Labor: Your time matters, even if you’re watching Netflix while sanding. Track your hours, even roughly.  
• Overhead: Think electricity, tools, website costs, market booth fees… all those “invisible” expenses.  
• Profit: This isn’t selfish. It’s how you keep the lights on and the clay stocked.
  Your profit percentage will depend on you, your product, and your market, but aiming for somewhere between 5% and 20% is a good place to start.
• Markup: Think of this as your business’s safety net.
  Even if you don’t plan to sell wholesale, it’s smart to build in enough room to cover discounts, fees, and free shipping when needed.
  If wholesale is on your radar, your markup should be no lower than 100%.
  If not, you’ve got more flexibility but still aim for enough margin that you’re not eating into your profits.
  Handmade products typically have a markup between 60% and 100%.

Use this formula as your foundation. It might not give you your final number, but it gets you in the right zone.

Why “Charging What Feels Fair” Is a Trap

Spoiler alert: what feels fair often turns into what feels safe.

You might feel guilty for charging “too much” (especially when you’re just starting), but that mindset doesn’t pay your bills or buy more clay.

You deserve to charge in a way that supports your creativity long-term. Period.

Tools to Take the Guesswork Out of Pricing

Free Handmade Product Pricing Calculator

Tired of spreadsheets? Me too.  

That’s why I coded this simple calculator to help you price your products without the headache.

Just plug in your numbers:

• Materials cost  
• Time spent  
• Your hourly rate  
• Overhead (don’t forget those sneaky expenses)  
• Desired profit  
• Desired markup percentage

Then click “Calculate Pricing” and boom — you’ll see exactly what it costs to make, what you could wholesale it for, and what your retail price should be. No spreadsheets required!

Ready to Crunch Some Numbers?

Understanding Your Pricing Calculator Results

Once you plug in your numbers, the calculator will give you three results:

• Total Costs:
  This is your materials + labor + overhead added together.
  It shows how much it actually costs you to make the product — before any profit is added.
• Base Price:
  This is your total costs plus your desired profit.
  Think of it as your wholesale price or your lowest sustainable price if you’re offering a big discount.
  It covers your costs and gives you a profit, but doesn’t yet include a markup for retail selling.
• Retail Price:
  This is your base price plus your markup percentage.
  It’s the final retail price you would list for customers — with enough margin built in to offer occasional sales, free shipping, or handle marketplace fees without cutting into your profit.

Quick Tip:
Now that you’ve got your numbers, try adjusting your hourly rate or markup to see how it impacts your final pricing. Play around until you find your sweet spot!
If you ever plan to sell wholesale or offer big discounts, double-check that your base price still makes sense for your business.
If you’re mainly selling direct to customers, focus on using your retail price as your regular price.

Pricing Tiers: Not Everything Has to Cost the Same

Not every item in your shop needs the exact same formula.  

Some pieces are quick to make and sell well in bundles. Others are your show-stoppers.

Try this structure:

• Good: Small studs  
• Better: Medium-sized statement earrings  
• Best: Time-intensive sculptural pieces

This gives customers options — and keeps you from underselling your best work.

The Mindset Shift: From Maker to Business Boss

Imposter Syndrome Is Not a Pricing Strategy

Let’s be honest. A lot of us avoid charging what we should because we’re worried people won’t pay it. (Looking at myself here.)

Guess what? Some won’t. But the right customers will — and they’ll do it gladly.

Confidence comes with time, but it starts with recognizing the worth of your time, creativity, and effort, even while you’re still learning.

Value vs. Price: What Are They Really Paying For?

People don’t just buy earrings.  

They buy your style, your story, your craftsmanship. They buy a gift that makes someone smile or a pick-me-up after a tough week.

Make sure your prices reflect all of that.  

You’re not just selling things — you’re selling joy.

Pricing Pitfalls to Avoid (and What to Do Instead)

Don’t Forget to Pay Yourself

You’re not running a charity. Pay yourself like the skilled creative you are.  

Even if you’re side hustling, your time matters.

Start with a simple goal: aim for at least minimum wage.  

Then increase as you develop your skills and complexity of work.

Don’t Compete with Mass-Produced Goods

You can’t out-price Amazon or Walmart — and you shouldn’t try.

What you can do is offer what they can’t: originality, small-batch charm, and a maker’s touch.

Don’t Let Custom Orders Derail Your Profit

Custom work is amazing, but it can be a trap if you don’t price accordingly.

Tips for managing custom orders:

• Set clear boundaries  
• Charge for design time  
• Include a buffer for revisions

Custom doesn’t mean giving your time away for free.

So You’ve Got the Price… Now What?

Test and Adjust (Without Panic)

Your first price won’t be your forever price.  

Test it. Watch how customers respond. Keep an eye on your profit margins and costs.

If something’s flying off the shelves? It might be time to raise the price.

Confidence Is Part of the Package

Practice saying your price without flinching. Seriously.  

Say it out loud. Rehearse your response to “That’s too expensive” so you don’t feel caught off guard.

Try: “I totally understand handmade pieces aren’t for everyone.”

Want More Than Just a Calculator?

If you’re looking for more than just a calculator to help you figure out how to price handmade products consistently and confidently, let me introduce you to the Handmade Product Hub.

It’s a Notion template I created for makers like you to:

• Track products and sales  
• Organize pricing info  
• Manage raw materials and packaging inventory  
• Keep all your little business bits in one tidy place

Learn more about the Handmade Product Hub to stay organized from pricing to production.

You Deserve to Get Paid (Yes, You)

Here’s your pep talk, friend: You’re not being greedy. You’re being professional.  

Pricing your work fairly is how you get to keep doing what you love.

Use the calculator. Trust the formula. And when you’re ready for the next level, check out the Handmade Product Hub.

Now go price your work like the badass maker you are.

Don’t forget to bookmark this page and/or pin the graphic below so you can easily come back and use the calculator anytime.