SA handcraft pricing formula
A commonly used handcraft pricing formula in South Africa (and globally) helps ensure you’re covering all your costs and making a fair profit. Here’s a practical and adaptable formula specifically suited for the South African context:
Basic Handcraft Pricing Formula (SA-friendly)
Cost Price (CP) = Materials + Labour + Overheads
Then:
Selling Price (SP) = CP × Markup (typically 2x to 3x)
OR
SP = CP + Profit Margin
Detailed Breakdown
- Materials
All materials used per item.
Example: beads + wire + thread + packaging = R35 - Labour
Your time, valued fairly.
Example: 2 hours at R50/hour = R100 - Overheads
Shared monthly costs (e.g. rent, electricity, transport, tools) split per item.
Example: R500/month ÷ 50 items = R10/item
Total Cost Price (CP) = R35 + R100 + R10 = R145
Then Add Your Profit
Option 1: Markup Method
Selling Price = Cost Price × 2.5
SP = R145 × 2.5 = R362.50
Option 2: Profit Margin Method
Decide on a profit goal (e.g., 30% of CP)
Profit = R145 × 30% = R43.50
SP = R145 + R43.50 = R188.50
Choose the formula that suits your market and product positioning best. Handmade luxury items may use a higher markup due to perceived value.
Tips for South African Crafters
Check what similar local products are selling for on platforms like Hello Pretty, Takealot, Facebook Marketplace, and at local markets.
Include transaction fees (e.g., Yoco, SnapScan, PayFast, etc.) if selling online or via card.
Factor in transport and packaging for delivery-based sales.
Keep your pricing consistent with your branding (high-end vs accessible).
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