Have you ever asked yourself, "How much should I charge for a tumbler?". Or, "How much should I charge for a custom shirt?"
Here is a 3-step guide to help you understand a quick way to price out your custom, handmade products.
Consider your cost of supplies and add $12 for each hour you spent on the final product. Write this number down on a piece of paper as Price #1.
Take your cost of supplies and multiply them times 3. Write this number down on a piece of paper as Price #2.
Add Price #1 to Price #2. Next, divide this by 2 to get the average number between Price #1 and Price #2. Write this number down on a piece of paper as Price #3.
Check this price against other products in your market. Do not worry if your price is higher or lower than others. Think about your price and whether or not your price fits. Does your price fit based on products you compared it to? Does your price feel fair for the amount of creativity, work, and emotion you put into your product?
If so, then you have your new price. If not, adjust it to what will work.
Look at an example of pricing a t-shirt with this method.
Let's say I am crafting a simple t-shirt that has some HTV cut and pressed to the front. Let's also say I am only using one color of HTV and only need one sheet of vinyl for the project. If I buy a t-shirt and a piece of HTV for this project, I might pay $8.53 (including tax). Let's also presume that it takes me 30 minutes to design the shirt, 10 minutes to cut and weed the shirt, another 10 minutes to heat and press the shirt, followed up back packing for delivery. Just presume it takes me an hour to make 1 shirt for this example.
Step 1 = (cost of supplies) + $12 per hour worked
$8.53 + $12 = $20.53 (make it easy on you, round up to $21)
Step 2 = (cost of supplies) times 3
$8.53 * 3 = $25.59 (make it easy on you, round up to $26)
Step 3 = (Price #1) + (Price #2), all divided by 2 to get the average
$21 + $26 = $47
$47 / 2 = $23.50 (again, round up to $24 if you'd like)
Step 4 = This is the price you should compare and try out
PS - Sometimes you will feel that your price is too high. Don't let that stop you from posting it as your new price. See if your customers accept your pricing. Chances are good that your customers will pay your new price and continue buying from you...while you make more money for the time you put into your work!