Most makers don’t undercharge because they’re careless. They undercharge because they’re trying to be fair… and they don’t see the full cost of what they’re doing.
Pricing mistakes are sneaky. They don’t look like a mistake at the time. They look like “I’ll keep it affordable” or “I’ll lower it for now.”
But underpricing doesn’t just reduce profit — it creates burnout. Here are the most common handmade pricing mistakes and how to fix them.
1) Only Charging for Materials
This is the classic mistake: you calculate materials and then “add a bit.”
Materials are only one part of the cost. Time, overhead, fees, and profit must be included too.
2) Forgetting Your Time
Even if you enjoy making, your time is still valuable. If you don’t include your hours, you’ll eventually feel resentful making the product.
Always include design, setup, finishing, packaging, and fixes.
3) Ignoring Machine Time
If you use machines (laser, CNC, 3D printer, etc.), the machine isn’t free. It uses electricity, wears down, and needs replacement parts.
Machine time belongs in your pricing — especially if your product is mostly machine-produced.
4) Missing Overhead Costs
Overhead is the silent profit killer: tools, blades, sandpaper, subscriptions, workshop power, website costs.
If overhead isn’t covered in the product price, it comes out of your pocket.
5) Pricing Based on What You Think People Will Pay
This is a big one. You pick a price that “feels right” instead of a price based on costs.
Start with your real costs and profit first, then check the market.
6) Copying Other Sellers
Two sellers can offer similar products with totally different realities:
- different speed and efficiency
- different suppliers and costs
- different quality standards
- different goals (hobby vs income)
Competitor pricing is a reference, not a rule.
7) Not Leaving Room for Profit
Profit isn’t optional if you want to grow. It pays for better tools, bulk supplies, mistakes, upgrades, and your own progress.
Pricing at break-even is not sustainable.
How to Fix These Pricing Mistakes Fast
The fastest fix is using a simple formula every time:
Materials + Time + Machine Time + Overhead + Fees + Profit
If you want it to be quick and consistent, use a craft pricing calculator that already includes those categories. I built one for my own work because I needed a fast way to stop guessing and start pricing properly.
Your goal isn’t to be the cheapest. Your goal is to be sustainable — and proud of what you’re building.