How To Price Your Handmade Product When You First Start?

I’ve written a way to price your product few months ago and after that; so many people asked me the same question: ‘nisha! The selling price will be so high! Who is going to buy it!’

What i forgot to mention was that this is the ultimate price point therefore this post will cover that part getting to there.

When you start making a product; of course you cant price it that way!

You cant compare yourself who is making 10pcs of product to someone who is making 10’000!’

Thats crazy!

So what you do is you backtrack the price.

From the info i provided; you use that to make the maks amount you can make or forecast how many you will be selling.

Example; instead of making and pricing for 10pcs, forecast (or set goal) that maybe in 6 months time you will be selling 1000 pcs.

From there; calculate your cost of making 1000pcs, and price it. (We have the bulk price available in @soaplabmalaysia website.)

Now since with soaplabmalaysia you can make product as little as 10pcs, do that first, but sell at the 1000pcs price.

Its ok if you lose a little margin, its ok if you are making loses initially.

Tell me which is better; you having 1000pcs that cant sell stuck in your store room or 10pcs?

Remember that when you are starting out; you are testing! 

Take one month, take two month to learn. This way if you are making ‘loses’ it wont be so much. But if you do it well; you may have a really great side business that you only pay few bucks to ‘learn’ from the initial margin loses you made. 

Example in soaplabmalaysia we sell selected readymade skincare. We have the price from 1pcs, up to 100pcs.

For 100pcs, the price is about rm15/pcs while 1 pcs is RM 60. If according to the info i gave in previous post; the selling price will be cost x 4 = RM60.

So initially; when you purchase the 1pcs, you will be not making any money; maybe a few ringgit losses too (for ads etc). 

But if you can sell; you will probably start buying the 10pcs which is rm 30/pcs; where you will be making profit of RM 30, and eventually get 100pcs that will give you a profit of rm45 each. 

So here your loss is probably about rm 10-20 initially to ‘test’ but if its ok; you will make RM 4500 every 100pcs you sell.

Got it? 😊