05/08/2026
Starting a handmade business is exciting... until you realise the product cost is only part of the equation. 😅
Here are 3 hidden costs we didn't fully account for when we started selling our handmade products:
✨ 1. Marketing
There’s "free" marketing (if you don't count your time!): optimising keywords, improving product descriptions, writing blog posts, and creating social media content.
Then there’s "paid" marketing, ads through platforms like Etsy and Google Ads to reach more people, faster.
Ideally, you do a mix of both.
The tricky part is that marketing is often most expensive at the beginning while you're still acquiring customers.
Over time, repeat purchases help spread that cost out, which is why keeping an eye on your returning customer rate matters so much.
The more repeat customers you have, the less you need to spend acquiring new ones, reducing your overall marketing cost over time.
✨ 2. Your time
This is the one many makers forget to include.
If you're not charging for your time, you're working for free...
Estimate how many products you can make in an hour and multiply that by the hourly rate you'd like to pay yourself.
And please don't undervalue your skills!
Artist imposter syndrome is real, but as your craftsmanship improves and your experience grows, your rate should grow too, just like it would in any other business.
✨ 3. The "unexpected" fund
Returns, damaged stock, replacement materials, packaging mistakes, and all the testing and experimenting behind the scenes.
Businesses call it "R&D" (Research & Development). We call it all the "ideas", samples, and prototypes that didn't quite make it. 😉
It's difficult to calculate exactly, so set aside a percentage and review it every 6 months.
💛 I hope this helps you price your handmade products and quality work the way they truly deserve.
