Let’s talk about the thing that makes almost every handmade seller break into a cold sweat: pricing. If you’ve ever typed a price into your Etsy listing, immediately felt guilty, and knocked $5 off…this post is for you.
Why Undercharging Is Quietly Killing Your Business
Underpricing your work doesn’t make you humble. It makes your business unsustainable. It also trains your customers to expect bargain prices, making it harder to raise them later.
The Pricing Formula Every Maker Needs
| The Maker’s Pricing Formula Cost of Materials + Your Time + Overhead + Profit Margin = Your Price |
Breaking It Down
Materials: Every single thing that goes into the product. Your time: Set a real hourly rate… start at $20/hour minimum. Overhead: Platform fees, electricity, equipment wear. Profit margin: Add at least 20-30% on top of everything above.
The Mindset Shift That Changes Everything
You are not a factory. You are a skilled artisan creating something with your hands, your knowledge, and your creativity. The customers meant for your work will not balk at fair pricing.
A Note for Etsy Sellers Specifically
Build Etsy’s fees directly into your pricing from day one… listing fees, transaction fees (6.5%), and payment processing. Run your numbers before you list, not after the sale.
Own Your Prices… No Apologizing
Stop softening prices with “it’s only” or “just.” Own your pricing fully. When you present your prices like they’re completely reasonable… because they are… customers feel that confidence and trust it.
| Action Step This Week Pick your top three products and run the pricing formula on each one. Make the adjustment… even a small one… this week. |
| Ready to take the next step? Enjoyed this post? The Inspired Maker newsletter delivers weekly tips on building a creative business that’s both profitable and joyful. Subscribe at https://inspiredmaker.substack.com… and check out handmade products at https://www.etsy.com/shop/RtisticCreationsShop. |
With love and a little kitty glitter,
Rosemary 💜🐾
Awakened Rtist | Rtistic Creations | Resources for Creatives | The Inspired Maker