How Much Are Your Crafts Worth?
Woman Adding Up Costs of Crafting

Thanks to Etsy, eBay, Pinterest and other crafting websites, there has been a growing trend of folks who are finding that many crafts can be used to bring in or supplement an income. The problem for most novice crafters is that they underestimate, and overestimate, what the value of their craft truly is and how much they should sell it for.

We recommend you take a few of these steps when placing a price tag on your crafts. It would be helpful to record each of these steps in a spreadsheet for reference later. Microsoft Excel, Google Docs, or Open Office all have excellent spreadsheet programs you can use. Some of those are even free.

Gettings Started

The very first step is locating suitable material supply companies that can offer you bulk deals on your materials. The more you save in buying the actual materials, the more flexibility you have when pricing the finished product.

Make sure that when you are calculating the cost of materials to also include the tools that are used. Some crafts may require a special tool that you do not own. You most definitely do not want to take on the additional cost of these tools without working them into your budget.

Next, consider the assembly process. If you are creating crafts as a business venture you have some calculations to ready first. You must assess the space, the quantity and the time it will take you to make each item. You will also need to assign yourself a certain wage. There is absolutely no sense in eliminating your wage. It may be small per piece but each piece adds up.

At this point you have hopefully created a spreadsheet with the following information:

  • Cost of Materials
  • Cost of Tools that is divided between each craft.
  • Labor

Don't Forget Marketing

The next step is marketing your craft. One great way to do this is to create a few free samples. This may sound counterintuitive to making money for your budding business, but bear in mind that word of mouth is the greatest form of advertisement. If you get your crafts in front of people, especially if they are very active in social media, it can create great buzz about what you have to offer. Be sure to add the cost of these samples into your spreadsheet.

Etsy Screenshot

You are almost ready to calculate the price. Now you have to find a market site such as eBay, Craigslist, or Etsy. (See our previous article about where to sell your crafts online.) You will need an account and detailed pictures and descriptions of each item. Plus, these marketplaces will want to charge a fee for their services. Your time and the fees all need to be calculated into your price.

Now you must look at the spreadsheet. How many are you going to make? How much does each cost? How soon can you produce these items? Each of these questions can lead you to the final question: What are your crafts worth?

Adding It All Together

Here is the basic formula you should use: Materials + Tools (divided by amount of crafts made) + Quantity made in a set time (usually an hour) + Marketing + Shipping and Handling

Remember that you are going to be dividing many of the aspects over a certain amount of craft(s) made. It may ultimately be a fantastic return on your investment and right now the market is hot for homemade items. That is a great way to start. Pay attention to items that are being sold often. That will let you know the price of your competitors and is a good way to know what you should price your own.