Do you want to bring your craft to the world? One of the first steps is learning how to price your creation. Use this quick guide and calculator to get started.
Pricing your product is a challenge, even for experienced entrepreneurs. One of the first things that you should do is create a budget for how much it costs to create your product. This can include simple things like how much the materials cost but it should also include the time spent to make it. You may not know the exact costs of time spent on the product but that's ok. It's more important to have estimates earlier on and dial in later, than wait too long and misprice your product. Here are some simple equations and a calculator to get you started.
Learn more with East Fork co-founders Connie & Alex Matisse in their first DesignClass.
Base Production Cost: The flat cost to produce your product.
Material Costs + Labor Costs + Shipping/Postage + Marketplace Fees + Misc. Expenses = Base Production Cost
Profit: What would you like your profit to be on the product?
Base Production Cost x Markup = Profit
Final Price: This is what you should charge customers.
Base Production Cost + Profit = Final Price