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Business 10 min May 15, 2026
Pricing Strategy for Handmade Products: Stop Undercharging
Most creators underprice their work. Learn how to calculate true costs and price with confidence.
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The #1 mistake handmade sellers make? Underpricing. If you're not making a profit, you have an expensive hobby, not a business.
The Pricing Formula
Price = (Materials + Labor + Overhead) × Profit Margin
1. Calculate Material Costs
Track every rupee spent on materials. Divide by number of products made from those materials.
2. Value Your Time
If you spend 3 hours on a product and value your time at ₹200/hour, that's ₹600 in labor.
3. Add Overhead
Packaging, shipping materials, tools, workspace rent. Divide monthly overhead by products sold per month.
4. Add Profit Margin
Multiply total cost by 2x (100% markup) minimum. For premium products, 3x or 4x is common.
H
Hookit Team
Content Team at Hookit