How to Price Your Handmade Crafts for Profit

Pricing Your Faux Leather Crafts – Let’s Talk About It

If you’ve ever made something beautiful with faux leather and then sat there wondering, “What should I charge for this?”  you’re not alone. Pricing handmade items can be a real head-scratcher, especially when you're trying to balance time, materials, and what your market will actually pay.

A common pricing formula floating around is:

(Cost of Supplies + Hourly Rate x Time) x 2 = Wholesale Price
Wholesale Price x 2 = Retail Price

This gives you a solid foundation – especially when you’re factoring in things like vinyl, snaps, hardware, thread, packaging, and your time (yes, your time is valuable!). But here’s the catch: pricing isn’t one-size-fits-all.

What you can charge often depends on:

• Where you sell – A tooth fairy pillow might go for $30 at a boutique market in a city, but only $15 at a casual school fair.

• Who your customer is – Some people love the handmade touch and will happily pay for quality. Others just want the cheapest option.

• Your brand – If your setup, packaging, and presentation look professional, you can often justify higher prices.

It’s easy to fall into the trap of comparing your prices to someone selling something similar on Etsy or Facebook – but remember, they might be using cheaper materials, not accounting for their time, or just under-pricing to make a quick sale. That doesn’t mean you should do the same.

(Beautiful Market Stall by Alisha)

Some tips to keep in mind:

🔹 Know your numbers – Add up your material costs, how long it took to make, and what you'd like to earn per hour.
🔹 Think about value – Your items are handmade, thoughtfully crafted, and likely stitched with care. That has real value.
🔹 Consider your audience – If you’re selling to moms at a school fundraiser, your prices might look different than at a designer market.
🔹 Test and tweak – It’s okay to adjust your prices as you go. Track what sells and what doesn’t – and don’t be afraid to increase your price if something is flying off the table!

And most importantly: you deserve to make a profit.
You’re not just covering costs – you’re rewarding yourself for the skill, time, and energy it takes to create something special.

So tell me – how do you price your crafts? Are you a formula fan, or do you go by feel? I’d love to hear your thoughts in the comments.

FAQ's

• How do I calculate the materials cost for my craft?
  Add up the exact cost of every component used in one finished piece—fabric, thread, blades, embellishments, packaging, etc.

• What’s a fair hourly wage for handmade work?
  Choose a rate you’d pay yourself—many makers start with $15–$25/hr, then adjust based on skill and niche.

• Do I need to include packaging and shipping costs in my price?
  Yes—package cost, labels, shipping, and platform fees should all be factored in as “overhead.”

• What profit margin should I aim for?
  Beginners often aim for 10–20%. If you're established or unique, consider 25–30% or higher.