Handmade Seller Magazine Sample Issue - Page 28

Don’t try and undercut the big box stores. You won’t.

Instead, think quality over of quantity. That wholesale price and the reasoning behind it should now be looking a lot more achievable. If applicable to your business model and product lines, using

machinery will also help to reduce production time. For example, I invested in an air powered bath bomb press after a short while to save my hands. Just because you are expanding your production process to use machinery does not mean your product isn't handmade anymore. It means you are working smarter and not harder and reinvesting into your business to ensure growth. My bath bomb press uses the same molds as before, and we now have two presses, with molds filled and emptied by hand, so it’s still handmade, but it's also incredibly efficient.

Now, scale the numbers up.

What happens is that the cost of raw materials goes down as you buy in larger quantities, rent and utilities stay mostly the same, and with practice, you will get faster. To estimate your prices and profit margins, use this formula:

Take your base cost and double it to get your wholesale price. Then, double the wholesale price to get the retail price.

Spend some time with a notepad and calculator

to get your base numbers in order:

RAW MATERIALS + RENT + UTILITIES + PAYROLL

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handmade seller magazine | 28