Let’s set the scene.

Someone picks up your handmade piece. They look at it carefully. They smile. Then they ask:

“How much is it?”

And suddenly your brain goes blank.

You start wondering:

“Is that too much?”
“Will people actually pay that?”
“Maybe I should lower it.”
“What if they think it’s overpriced?”

If you’ve ever felt this way, you’re not alone.

Pricing your creative work can feel personal because your products are personal. They hold your time, skill, creativity, and passion.

But here’s the good news:

Pricing does not have to be based on guessing.

It can be simple. It can be practical. It can be based on real numbers.

A little math can give you a lot more confidence.

Throughout this guide, we’ll use one example:

Our Example : Handmade Woven Wall Art

You create a woven wall hanging that takes several hours to design and make. We’ll walk through exactly how to calculate a fair price.

Step 1: Stop Guessing Your Price

Many creatives start pricing with questions like:
“Whatever feels right?”
“What do I think people will pay?”
“What price won’t scare customers away?”
The problem?
Those questions don’t tell you if your business can actually support itself.
A sustainable price needs to cover:
The materials you use
The time you spend
The costs of running your business
The profit needed to continue growing
Your price should not be a guess.
It should tell the story of what it takes to create your product.

Step 2: Calculate Your Material Costs

Start with everything that physically goes into making your product.

This includes:

Supplies
Packaging
Labels
Shipping materials
Any other item needed to complete the order

For our example:

Handmade Woven Wall Art

Materials:

Yarn: $25
Wooden dowel: $10
Packaging materials: $15

Formula:

Material Costs = Supplies + Packaging + Additional Materials

Calculation:

$25 + $10 + $15 = $50

Your material cost is:

$50

Step 3: Calculate Your Time

Your time is part of the product.

Many new entrepreneurs only count materials and forget the hours they spend creating.

Your time includes:

Designing
Creating
Finishing
Photographing
Preparing the product for sale

Choose an hourly rate that reflects your skill and experience.

A good starting point for many creatives:

$25–$50/hour

For our example:

You spend:

5 hours creating the wall art

Your hourly rate:

$35/hour

Formula:

Hours Worked × Hourly Rate = Labor Cost

Calculation:

5 hours × $35 = $175

Your labor cost is:

$175

Step 4: Find Your Base Cost

Now combine your materials and labor.

Formula:

Material Costs + Labor Cost = Base Cost

For our example:

Materials:
$50

Labor:
$175

Calculation:

$50 + $175 = $225

Your base cost is:

$225

This is the minimum amount your product needs to make before adding profit.

Remember:

This is not your final selling price.

This is simply what it costs to create the product and pay yourself for your time.

Step 5: Add Business Expenses

Creating a product is only one part of running a business.

You also have costs that help your business operate.

These are often called overhead expenses.

Examples:

Website fees
Software subscriptions
Studio supplies
Marketing
Equipment
Business tools

Instead of paying these costs out of your own pocket, include a portion of them in your pricing.

For our example:

You estimate that each product needs to contribute:

$25 toward business expenses

Formula:

Base Cost + Overhead = Total Cost

Calculation:

$225 + $25 = $250

Your total cost is:

$250

Step 6: Add Profit (On Purpose)

This is where many creatives stop too soon.

They calculate their costs and think:

“I covered everything, so I’m done.”

But profit is what allows your business to grow.

Profit helps you:

Purchase better materials
Invest in equipment
Take time off
Handle slower seasons
Build a stronger business

A simple way to add profit:

Total Cost × Profit Margin = Selling Price

A common starting point:

20–50% profit margin

For our example:

Total Cost:

$250

Add 30% profit:

$250 × 1.3 = $325

Your final product price:

$325

Your Complete Pricing Formula

Here is the full equation:

(Materials + Labor + Overhead) + Profit = Selling Price

Using our woven wall art example:

Materials:
$50

Labor:
$175

Overhead:
$25

=

Total Cost:
$250

Profit:
$75

=

Selling Price: $325

Step 7: Compare Your Price With the Market

Once you have your number, do some research.

Not to copy other creators.

Not to convince yourself your work is worth less.

But to understand where your product fits.

Look at similar products:

What are other artists charging?
What quality level are their products?
How are they presenting their work?
Who are they selling to?

For our example:

You research handmade woven wall art and find similar pieces selling between:

$200–$500

Your price:

$325

That tells you your pricing is within a realistic range.

Market research gives you context.

It does not determine your value.

Step 8: Communicate Your Price With Confidence

Once you know your price, stand behind it.

Avoid saying:

“I know it’s expensive…”

“I can lower it if needed…”

“I’m still figuring out pricing…”

Your customers do not need to see your uncertainty.

Instead:

“This handmade woven wall art is $325. Each piece is carefully designed and created by hand using quality materials.”

Clear.

Simple.

Confident.

Your customers are not just buying materials.

They are buying:

Your creativity
Your craftsmanship
Your experience
Your time

A Quick Reality Check

If you want your creative work to be:

A hobby:
Pricing can be casual.

A side income:
Pricing should be intentional.

A business:
Pricing needs to be strategic.

There is nothing wrong with wanting your creativity to support your life.

Creative entrepreneurs deserve to:

Pay their bills
Invest in their business
Build savings
Create without constantly worrying about money

A Quick Pricing Checklist

Before you set your price, ask:

☐ Did I include all my materials?
☐ Did I pay myself for my time?
☐ Did I include business expenses?
☐ Did I add profit?
☐ Does this price support the kind of business I want to build?

Your Bottom Line

Your pricing formula should not be:
✨ vibes ✨

It should be based on facts.

A simple formula can transform the way you think about pricing:

Materials + Time + Expenses + Profit = Sustainable Price

You can still be kind.
You can still be approachable.
You can still build community.

But you cannot build longevity on undercharging.

When you know your numbers, you stop second-guessing yourself.

You stop competing on price.

You stop undercharging.

And you start building a business that can support the life you want—not just today, but for years to come.

Ready to Build a More Profitable Business?

Pricing is one of the most important foundations of a successful business.

At Textile Reverie, we believe every entrepreneur deserves the confidence to price their work with clarity and purpose. Our advising services, workbooks, resources, and creative business tools are designed to help you make informed decisions, strengthen your brand, and build a business that's both meaningful and profitable.

Because building a successful business isn't just about selling more.

It's about understanding your value, pricing with intention, and creating something that lasts.

Explore Textile Reverie’s tools and services and start building something sustainable.