June 2025
What Goes into the Price of a Handmade Item?
06/20/25 09:30 AM
Have you ever asked yourself that question? Or how can two similar items, both hand made, vary in cost? The price of handmade items reflects various factors that go into their creation. In this blog I will be looking specifically at what contributes to the cost of a handmade artificial botanical product:
1. Materials: Probably the most obvious is the cost of the raw materials. In my business it would be materials such as the greenery, florals and ribbon that are used in a wreath directly impact the price. For example: Designer brand ribbons like dstevens or Farrisilk are supreme quality ribbons not available from local hobby shops. These ribbons are made using thicker textiles often embellished with fancy trims, beads, gems or yarns and thicker wire. These vendors often require minimum orders and charge not only for materials but, also shipping. To purchase from manufactures you must be in the trade or hold a business license which also has operating expenses.
2. Time: They say time is 'Money". Handmade items take "time" to create.
a. Procurement of materials. An artisan needs to research and purchase the materials to used. A factor often overlooked and hardly considered when looking at a handmade item is the amount of time spent researching and shopping for the unique materials to be placed in the product. Keep in mind, almost all of the time these materials are purchased from a variety of vendors.
b. Creating original designs or prototypes involves research, development and experimentation, which adds to the cost of the product.
c. The hours spent design, crafting and finishing an item are a factor in the price of a handmade product.
3. Skill and expertise. It isn't just about the materials! Artisans with years of experience or specialized training often charge more due to their mastery and uniqueness of their work. Yes, artificial botanical designers included. EX: I have over 30 years of interior design experience which includes color theory and design. That does not include the money and time spent in getting a degree or training in learning about artificial botanical design. Each handmade piece we create involves time as stated above but there is also a level of skill required as well. Skill comes from a combination of education, training, experience and a whole lot of love. From selecting the perfect materials to handcrafting every detail, each item tells its own story.
4. Tools and Equipment: Tools of the trade require investment and maintenance. DIY individuals typically have no desire to spend hundreds of dollars investing in tools and equipment to create one or two items. These costs may be amortized into the item's price as well.
5. Overhead Costs. A dedicated space is needed to create a handmade piece. With that space comes expenses such as rent, utilities, packaging and shipping materials. Shipping the product to the customer is another overhead cost.
a. Shipping is a big factor in my business. Shipping carriers not only consider the weight of the box but now charge for what is called "dimensional weight". This means a charge for the amount of space the box uses on their means of transportation such as a truck. For a wreath that measures 24" in diameter and weighs only 4 lbs my business cost to ship from Arizona to New York will on average cost me $45 in shipping alone. Unfortunately, small business owners do not get breaks on shipping like large big box stores who can offer free shipping on their products.
6. Marketing Factors. Limited-editions or custom pieces often cost more due to exclusivity. Prices may reflect local market rates, imposed tariffs on products not available in the USA, the demand for the item, or the artisans reputation. EX: My designs are never replicated unless a customer requests a duplicate for something like an entry with double doors. I may reimagine a design but it will not be a duplicate.
7. Profit Margin: Profit margin is a necessity to all Artisans who are in business. When I taught interior design at the local community colleges, I reminded my students who were going into the industry that fees are charged because this is your "job" and not a hobby. You have rent or mortgage payments and bills to pay just like everyone else. An Artisan is not any different and includes a profit margins to sustain their business, cover taxes, and account for time spent on non-crafting tasks like marketing, purchasing, bookkeeping, shipping or customer service.
For Example: A simple handmade wreath includes the cost of the base ($8), greenery ($15+), florals ($15+), ribbon for bow ($8+) supplies like florist tape, metal picks, hot glue, wire ($5) 2-3 hours labor at $20hr ($40+), shipping costs ($30+) and overhead($10). $131.00 is a conservative cost of a simple 24" wreath not including any profit margin.
1. Materials: Probably the most obvious is the cost of the raw materials. In my business it would be materials such as the greenery, florals and ribbon that are used in a wreath directly impact the price. For example: Designer brand ribbons like dstevens or Farrisilk are supreme quality ribbons not available from local hobby shops. These ribbons are made using thicker textiles often embellished with fancy trims, beads, gems or yarns and thicker wire. These vendors often require minimum orders and charge not only for materials but, also shipping. To purchase from manufactures you must be in the trade or hold a business license which also has operating expenses.
2. Time: They say time is 'Money". Handmade items take "time" to create.
a. Procurement of materials. An artisan needs to research and purchase the materials to used. A factor often overlooked and hardly considered when looking at a handmade item is the amount of time spent researching and shopping for the unique materials to be placed in the product. Keep in mind, almost all of the time these materials are purchased from a variety of vendors.
b. Creating original designs or prototypes involves research, development and experimentation, which adds to the cost of the product.
c. The hours spent design, crafting and finishing an item are a factor in the price of a handmade product.
3. Skill and expertise. It isn't just about the materials! Artisans with years of experience or specialized training often charge more due to their mastery and uniqueness of their work. Yes, artificial botanical designers included. EX: I have over 30 years of interior design experience which includes color theory and design. That does not include the money and time spent in getting a degree or training in learning about artificial botanical design. Each handmade piece we create involves time as stated above but there is also a level of skill required as well. Skill comes from a combination of education, training, experience and a whole lot of love. From selecting the perfect materials to handcrafting every detail, each item tells its own story.
4. Tools and Equipment: Tools of the trade require investment and maintenance. DIY individuals typically have no desire to spend hundreds of dollars investing in tools and equipment to create one or two items. These costs may be amortized into the item's price as well.
5. Overhead Costs. A dedicated space is needed to create a handmade piece. With that space comes expenses such as rent, utilities, packaging and shipping materials. Shipping the product to the customer is another overhead cost.
a. Shipping is a big factor in my business. Shipping carriers not only consider the weight of the box but now charge for what is called "dimensional weight". This means a charge for the amount of space the box uses on their means of transportation such as a truck. For a wreath that measures 24" in diameter and weighs only 4 lbs my business cost to ship from Arizona to New York will on average cost me $45 in shipping alone. Unfortunately, small business owners do not get breaks on shipping like large big box stores who can offer free shipping on their products.
6. Marketing Factors. Limited-editions or custom pieces often cost more due to exclusivity. Prices may reflect local market rates, imposed tariffs on products not available in the USA, the demand for the item, or the artisans reputation. EX: My designs are never replicated unless a customer requests a duplicate for something like an entry with double doors. I may reimagine a design but it will not be a duplicate.
7. Profit Margin: Profit margin is a necessity to all Artisans who are in business. When I taught interior design at the local community colleges, I reminded my students who were going into the industry that fees are charged because this is your "job" and not a hobby. You have rent or mortgage payments and bills to pay just like everyone else. An Artisan is not any different and includes a profit margins to sustain their business, cover taxes, and account for time spent on non-crafting tasks like marketing, purchasing, bookkeeping, shipping or customer service.
For Example: A simple handmade wreath includes the cost of the base ($8), greenery ($15+), florals ($15+), ribbon for bow ($8+) supplies like florist tape, metal picks, hot glue, wire ($5) 2-3 hours labor at $20hr ($40+), shipping costs ($30+) and overhead($10). $131.00 is a conservative cost of a simple 24" wreath not including any profit margin.
When you support "handmade" you are supporting creativity, passion and quality craftsmanship.
Thank you for choosing to investing in us!