Counting Your Time When Pricing Handmade Products
Many makers forget to count their time when pricing handmade products. You add up materials, maybe a bit for overhead, then wonder why you're working for pennies an hour. Counting your labour properly isn't greedy—it's how you build a sustainable business.
Why Your Time Matters
Your time has value, even if you love what you do. When you price a product, you're covering materials, overhead, and the hours you spend making it. If you leave out labour, you're essentially paying customers to take your work.
Think of it this way: if you wouldn't accept that hourly rate working for someone else, why accept it working for yourself?
Choosing Your Hourly Rate
There's no single right answer, but here are practical ways to decide:
- Minimum wage as a floor: You should earn at least minimum wage. Rates vary by province, so check your current rate on the Canada.ca minimum wage page.
- Skilled labour rate: If you have specialized skills, consider $20 to $30 per hour or higher.
- Market research: Look at what similar makers charge and work backwards to see what labour rate their pricing suggests.
- What feels sustainable: Pick a rate that makes the work worthwhile and keeps you motivated.
Remember, you're running a business, not a hobby. Your rate should reflect your skill, experience, and the value you create.
Tracking Your Time Accurately
To price properly, you need to know how long things actually take. Here's how:
- Time yourself: Use a timer for each step—cutting, assembling, finishing, packaging.
- Include everything: Count setup time, cleanup, quality checks, and packaging, not just the fun creative parts.
- Track several batches: Your speed will vary. Time yourself over multiple sessions and use an average.
- Account for learning: As you get faster, you can adjust. But don't underprice because you're still learning.
Keep notes. After making the same item a few times, you'll have a solid time estimate to use in your pricing formula.
Worked Example: Soy Candles
Let's say you make 8 oz soy candles. Here's how to count your time:
Materials per candle:
- Soy wax, wick, jar, label: $4.50
Time tracking:
- Melting wax and adding fragrance: 15 minutes
- Pouring and setting wick: 5 minutes
- Cleanup: 5 minutes (per batch of 6 candles, so about 1 minute per candle)
- Labelling and packaging: 4 minutes
- Total time per candle: 25 minutes (0.42 hours)
Labour cost:
- Your chosen rate: $24 per hour
- Labour per candle: 0.42 hours × $24 = $10.08
Overhead (rent, utilities, equipment):
- Estimated at 20% of materials and labour: ($4.50 + $10.08) × 0.20 = $2.92
Total cost:
- $4.50 (materials) + $10.08 (labour) + $2.92 (overhead) = $17.50
Wholesale price (cost × 2): $35.00
Retail price (wholesale × 2): $70.00
That might seem high at first, but it properly values your time and skills. If the market won't support that price, you might need to find efficiencies, make items in larger batches, or choose different products.
Using a Pricing Calculator
Working through the math each time takes effort. A pricing calculator speeds this up and ensures you don't forget anything. The handmade pricing calculator lets you enter your time, materials, and overhead to see wholesale and retail prices instantly.
Make It Easier
MakerCraft helps you track how long products take to make, calculates your costs including labour, and suggests pricing—all in one place. Instead of spreadsheets and guesswork, you get clear numbers that value your time properly.
This article is general information, not tax or legal advice.