How To Price Your Items
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There are many different pricing formulas that people use when deciding how much to sell their products for.
Standard Pricing Formula
time + materials = cost
cost x 2 = wholesale price
wholesale x 2 = retail price
My Basic Pricing Formula
Personally, I like to get at least 3 times what I paid for the blank. For example, if I buy a t-shirt for $5, I try to sell it for $15. This usually (not always) covers the cost of the vinyl and blank, and gives me profit for my time. However, there are other factors that I take into consideration, such as the cost of vinyl and my time.
Vinyl Cost Breakdown
Some people try to get very precise with their pricing, breaking down the cost of vinyl per project. To calculate how much your vinyl costs per square foot, take the total price and divide it by the number of feet in a roll. For example, a 12″ x 6ft roll of black Oracle 651 vinyl costs $6. $6 divided by 6ft=$1/sq. ft.
When I make wine glasses, my design is usually around 3″x 3″. This would equate to a small fraction of a dollar (1/16th or 6 cents) for the amount of vinyl you need to make mugs/glasses. I know that adhesive vinyl is generally pretty cheap so I usually don’t factor in adhesive vinyl costs to my prices, unless it’s a huge project.
Heat Transfer Vinyl (HTV) is more costly than Oracle 651 vinyl, so adjust your math accordingly if you want to calculate the cost of your HTV. A 11.8″ x 5ft roll of Siser Easyweed HTV is currently selling for $16.99. This breaks down to about $3.40 per square foot.
The Cost Of Your Time
Your time is valuable! It’s very important that you pay yourself adequately for the amount of time it takes to make a product. Some projects with intricate designs take longer to make than other more simple designs.
I can spend hours and hours designing a memorial lantern, weeding tiny bits of stubborn Oracle 651, disassembling the lantern so that I can get my vinyl on the inside of the glass, transferring the vinyl, and reassembling it. My blank materials might only cost me $10, but I charge anywhere between $30-60 to compensate for all the hours I spend making it. It wouldn’t be worth it to sell that same $10 for lantern $20 if I spent 4 hours making it. Then you would only be paying yourself $2.50/hour for your time.
You want to make sure you’re paying yourself at least minimum wage for your time.
What Other People Are Charging
You need to do some research and see who your competition is and what they’re charging. Look on Etsy or Facebook Marketplace and see if anyone is selling something similar to you. Maybe you are selling a beautiful, personalized, custom designed wood sign. You list it for $40, but then find out your neighbor is selling one just like it for $25. Who do you think the customer is going to choose? You don’t want to underpay yourself for your work, so use one of the formulas above to create a price you feel good about. If there is competition in your area, find a way to make your product better than theirs! Consider these two wood signs below. One has just vinyl text, and the other has lace ribbon and a beautiful flower added.
The one with the added touches will probably sell better and for a higher price.
Deciding how much to sell your items for depends on a lot of different factors.
FAQs
My Basic Pricing Formula
How to figure out how much to charge for crafts? ›
In her Tips for Pricing your Handmade Goods blog on Craftsy, artesian entrepreneur Ashley Martineau suggests this formula:
- Cost of supplies + $10 per hour time spent = Price A.
- Cost of supplies x 3 = Price B.
- Price A + Price B divided by 2 (to get the average between these two prices) = Price C.
How Much Can You Sell a Used Cricut Machine for? You can sell a used Cricut for anywhere from $150 to $250. But, if it's an older one, you might be looking at around $50 to $100. It's all about the demand and how many people are looking for what you've got, along with what model you have.
Can I legally sell Cricut designs? ›
Cricut has an "Angel Policy" that permits you to sell finished products made with Cricut machines, tools, accessories, and software. However, there are some restrictions: Designs marked with a green "a" are part of Cricut's Image Library Subscription. These are fine to use for Etsy products.
Can I sell products I make with Cricut? ›
If you're a dedicated Cricut maker, you can earn money selling crafts locally, on an online marketplace, or through your own ecommerce website. If you're excited by the thought of turning your hobby into a source of income, you might be ready to start your own Cricut business.
How do you price your creations? ›
[Supplies] + [Time] = Item Cost
The "Item Cost" is how much your item costs you to make. Yes, it's not just supplies that makes up the item cost! Your time is valuable too, so work out your hourly rate and be sure to stick to it when you're working out the pricing.
How do you determine how much to charge for an item? ›
Establish Your Bottom Line
- Cost of Materials. Look at how much you spent acquiring your supplies. ...
- Value of Labor. ...
- Shipping & Postage. ...
- Marketplace Fees. ...
- Other Expenses. ...
- Quality. ...
- Market Price & Demand. ...
- Consumer Research.
Cards are some of the best things to make and sell with the Cricut because they appeal to everyone. Cards deserve their own category because they are super cost-effective to make and there's a need for one on every occasion from birthdays to thank you's to weddings. Plus, shipping cards just doesn't get any cheaper.
How to charge for Cricut shirts? ›
My Basic Pricing Formula
Personally, I like to get at least 3 times what I paid for the blank. For example, if I buy a t-shirt for $5, I try to sell it for $15. This usually (not always) covers the cost of the vinyl and blank, and gives me profit for my time.
Is it easy to make money with Cricut? ›
If you work smart and pay attention to licensing and copyright, you can totally sell the items you make using your Cricut Explore or Cricut Maker cutting machine. This extensive post will help you grasp a lot of what goes into selling your Cricut creations. Get the most out of the best cutting machine of 2022!
Cricut does not claim ownership of the original works which you submit to our Site. Note: Original works being defined as works that do not incorporate one or more images or fonts from the Cricut library, i.e., two shapes purchased and welded together to form a separate image.
Can I sell Disney Cricut projects? ›
The only way to legally sell anything with a Disney image on it is to request permission directly from Disney. You can do that HERE.
Do you have to pay to make Cricut designs? ›
Design Space is the free program that you use with your Cricut machine—it's what allows you to design projects and make them on your machine. Cricut Access is a separate optional, paid subscription that gives you access to extra features in Design Space (listed above) plus other member benefits.
What to make with Cricut to make money? ›
Custom t-shirts seem to sell well (think a matching family t-shirt set for the Holidays or a vacation), and so do t-shirts with quirky sayings. I like making t-shirts with Cricut's Infusible Ink for a more high-end look, but you can also make beautiful tees with Iron-On Vinyl and a good press.
What is an angel policy? ›
The Angel Policy from Sizzix Ellison mentions that Craftwork created for sale must be personally and individually made by the selling artist. It may not be reproduced, copied, imitated or materially altered in any form by any means including graphic, electronic, digital, mechanical or photocopying.
Can you sell shirts made with Cricut? ›
We believe we have one of the most generous Angel Policies in our industry. The Cricut Angel Policy allows you to sell things you have made using your Cricut machines, tools, accessories and software. But we do not allow mass production of craft items made with our products.
What is the formula for art pricing? ›
(Height x Width) × Price per square inch
It's also pretty straight forward: it takes the surface area of a work and multiplies by a rate of your choosing. Determining the price per square inch is the tricky part.
How to calculate labor cost for handmade items? ›
Simply take the number of hours it took you to make the product, multiply it by your hourly rate, and that's how much you should charge for the item! For example, let's say that you spend 2 hours making a pair of earrings. Using an hourly rate of $12.50, you would charge $25 for the earrings ((2 x 12.50) = 25).
How to price items at a craft fair? ›
Six Easy Pricing Tips for Crafters
- Your Time is Money. When you're calculating your costs, make sure to include your time. ...
- Calculate Your Costs. ...
- Appraise Fair Market Value. ...
- Know Your Audience. ...
- Don't Forget the Sales Tax. ...
- Match Your Display with Your Pricing.
All you have to learn are two very simple formulas: (Materials + Labor + Overhead) x 2 = Wholesale price. Wholesale price x 2 = Retail price.
