How to price handmade earrings

Earrings look small, so a price can feel like it should be small too. The costs decide the price, not the size.

The price of one pair has to pay for five things.

Fees come out of the final price. That is why the last step divides instead of adding: price = (costs + fixed fees) ÷ (1 − percentage fees − profit).

The calculator does that step for you. Here is what it gives for one example.

Say you make 10 pairs of sterling silver hoops in 2 hours 30 minutes. That is 15 minutes a pair.

Each pair uses 7 inches of wire at $15.24 a foot, plus 5% extra for waste. The earring card is $10.74 for 100. Materials come to $9.44 a pair.

Your time at $20 an hour is $50.00 for the batch. Shared across 10 pairs, that is $5.00 a pair. Overhead of $20 a month, shared by 40 pairs a month, adds $0.50 a pair.

A pair costs you $14.94 to make. Etsy takes $2.52 in fees on a sale this size. With 20% profit, the price is $21.84 a pair.

One rule says to charge twice what the materials cost. For these hoops, that is $18.88.

At $18.88 on Etsy, you keep what is left after fees, materials and overhead. At 15 minutes a pair, that pays you $26.78 an hour. The rule comes close here, because silver wire is expensive and the work is quick.

Now make the same hoops at 30 minutes a pair. The same $18.88 pays you $13.39 an hour. That is below the $20 an hour you wanted. The calculator's price for this speed is $28.93.

Doubling the materials leaves out your time. It works only when materials cost a lot compared with your time. When they do not, the price comes out too low.

Hoops made from wire need no ear wires. Dangles, studs and drops do, and the metal you choose changes the cost a lot.

A gold-filled pair costs $8.39 and a gold-plated pair costs $0.59. That is $7.80 more on every pair you sell, before you add anything else.

Add the backs at $0.14 a pair, then the card and the bag. Each is small. Over a batch they add up.

Making clay earrings instead? See how to price polymer clay earrings.

Price from the pairs you can sell, not the pairs you make. If one pair in 10 breaks, you still paid for all 10. The other 9 carry the cost.

In the example, 9 sellable pairs out of 10 moves the price from $21.84 to $22.63 a pair. In the calculator, enter the number you can sell under More settings.

Fees change the price. The same hoops come to $21.84 a pair on Etsy and $19.50 at a market with a card reader.

Etsy takes 6.5% + 3% + $0.25 an order + $0.20 per item sold. A card reader like Square takes 2.6% + $0.15 an order. On Etsy, fees are $2.52 on a $21.84 pair. At a market, they are $0.66 on a $19.50 pair.

If you want one price everywhere, set it for the place with the highest fees.

Etsy is a trademark of Etsy, Inc. BeadCounters is not connected to or endorsed by Etsy.

If a shop pays half of your retail price, it pays $10.92 for these hoops. They cost you $14.94 to make, so you lose $4.02 on every pair.

For half of retail to cover your cost, your retail price must be at least $29.89. Check that before you agree to an order. You can raise your price, lower your cost or say no.

• Leaving out your time. Without it, the example price drops from $21.84 to $14.75, and you work for nothing.
• Pricing from materials alone. It can come close when silver is the main cost. It misses when you work slowly.
• Forgetting small costs. A card is $0.11 and a pair of backs is $0.14. Over a batch, they add up.
• Leaving out fees. Etsy takes $2.52 of every $21.84 sale in the example.
• Counting pairs you make, not pairs you sell. A broken pair is still a cost.
• Copying other sellers' prices. Their costs, speed and fees are not yours.
• Keeping old prices. Wire and findings change in price. Check yours each time you reorder.