Uk crafts designer makers! How do I work out my wholesale and retail prices for my craft work?

For example if 1 item costs me 1.30 to make in materials and time. What would be the wholesale and retail price and how do I work this out?

Many thanks in advance

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4 Responses to “Uk crafts designer makers! How do I work out my wholesale and retail prices for my craft work?”

  1. Kay said:

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  2. BigMac said:

    think of a number double it theres your price basically what ever you believe you can get away with you are in business to make money not to be mr nice guy

  3. Pembroke said:

    As Big Mac says, whatever the market will stand. Research the prices your competitors are charging for similar items and aim to charge a little less if you can, or depending on how you sell your products do free postage or more attractive packaging.

    To be honest I find your 1.30 a very low estimate of the basic price although I don’t know what you are making.

    As you are self employed and won’t get holiday pay or sick pay and will have to do all your books and pay an accountant. I’d be looking to a labour rate of at least 20 GBP per hour if not more.

  4. Rosemary P said:

    A very simple way of working it out is to take your material costs, double it to cover your time and add on half again of that sum for profit. The formula, therefore, is a third for materials, a third for overheads and a third for profit. That would give you your wholesale price. Your wholesale price would be about 35% of the retail price, as retailers want to be able to apply a mark up that makes it worth their while stocking and selling the goods. So, if your wholesale price is 3.50, the retail price would be 10.

    What’s your production capacity, that is, how many items can you make in a week? If using the formula above doesn’t give you the profit that you need, you’ll have to look at either charging more for the items or reducing your costs. As has been mentioned elsewhere, you do need to check what the market will stand.

    Undercutting your competitors’ prices is not necessarily the best answer. If you undercut and someone wants to negotiate a better price, you have no room to do so. Not everyone wants to buy cheap. Some actually have an aversion to it.

    Find another way in which your product is different from your competitors and market it on that strength.

    Good luck!




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