Pricing For Profit

Pricing for Profit.

Overcoming the common barrier of undervaluing handmade goods. 

The hardest part of moving from hobbyist to business owner isn’t perfecting your vinyl application or finding a great supplier—it’s clicking the “Publish” button with a price tag that actually earns you money.

If you’re a Cricut creator on Etsy, chances are you’re guilty of setting your prices based on one of two things:

1. What your competitor down the scroll is charging.

2. What you think a customer is “willing to pay.”

It’s time to learn how to price handmade crafts for profit using a clear formula that accounts for your time, materials, and the true value of your skill.

The Fatal Flaw: Ignoring the “Time Tax”.

 When you look at your competitor’s low price, you’re only seeing their material cost. You are not seeing the two most expensive items in your business: Time and Overhead.

A successful pricing strategy must cover three core components:

1. Materials Cost (M): The obvious stuff (blanks, vinyl, shipping boxes).

2. Labor Cost (L): Your time, valued professionally.

3. Overhead & Profit (O+P): The business expenses and your actual income.

Step 1: Calculate Your Labor Cost

This is where most makers fail. Your labor should be treated as a professional expense.

• Set Your Hourly Wage: What is your time worth? A good starting point for specialized craft work is $15 – $25 per hour.

• Time Tracking: Track every second for one item: ideation, cutting, weeding, assembly, packaging, and listing photography.

Determine Your Overhead Multiplier

A simple multiplier ensures you cover the hidden costs of running a business (Etsy fees, electricity, Cricut blade replacement, advertising, etc.) and gives you a healthy profit margin.

• Pricing for Fear: If you charged $20.00, your $7.00 profit wouldn’t cover fees, ads, or your time. You’re trading dollars, not earning them.

• Pricing for Profit: Charging $39.00 ensures you cover all costs and actually pay yourself.

Value Proposition: The Reason Customers Will Pay

Once you set a fair price, your job is to justify that price by highlighting the value that sets you apart from the lowest-cost option. Your niche (from our last post!) is your justification.

• Instead of: “This shirt is $39.”

• Try: “This custom-illustrated shirt uses only ethically sourced, organic cotton, justifying the price because you’re paying for advanced illustration skill and sustainable quality, not mass-produced filler.”

The high-end customer in your niche expects to pay more. They value quality, personalization, and unique design over the lowest price.

We know it’s scary, but pricing your work correctly is the single biggest step toward creating a sustainable, long-term craft business.