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I’ve talked pricing on the blog before. First, I outlined how to price your craft items for sale. Then, I talked about pricing products when your supplies were on sale. There’s no right or wrong way to determine how much to pay yourself – it’s completely subjective. Today, let’s look at how much to pay yourself.
Two Ways to Guide Yourself
- If you recently worked outside of your home, you should pay yourself at least the equivalent to what you previously paid. There are some limitations to using this method. For example, if you previously made $120,000 working in a high demand job you likely won’t be able to set your prices competitively enough in the craft market.
- You should pay yourself at least minimum wage for your state. Here in Florida, that means at least $8.05. In contrast, minimum wage in California is $10.00 an hour; while minimum wage in New York is $9.00. As your skills increase and your products get more technically difficult – you’ll raise your hourly wage.
It’s just that simple! Remember, your business won’t get far if you don’t pay yourself enough. Underpaid working from home crafters are likely to get burned out faster, too.
How much do you pay yourself per hour? Share in the comments.
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Since 2015, Christine Schinagl has been helping crafters start and run craft businesses through her blog, Cutting for Business. As a Silhouette and Cricut crafter herself, she has a unique take on what works and what doesn’t work in the craft business world. She also teaches a course on creating digital SVG designs, available at How to Design SVGs.
Julie
Thursday 20th of July 2023
Question!! How much should I charge per sheet to cut htv vinyl if the customer is providing the vinyl? Sheet = 12 x 15
Christine Schinagl, Cutting for Business
Wednesday 26th of July 2023
I'd use your hourly rate.
DreaD
Wednesday 21st of August 2019
Any tips on how much to pay an assistant?
Christine, Cutting for Business
Sunday 25th of August 2019
It depends what they will be doing: https://cuttingforbusiness.com/things-to-consider-when-hiring-an-employee-in-your-craft-business/
Emily
Thursday 21st of March 2019
I am making crochet Christmas tree skirts. It takes 15 hours to make one. If I pay myself even minimum wage, I’d have to sell one for $150 to cover materials, shipping, Etsy costs ect. Similar ones sell on Etsy for $50 average price. This is where I’m struggling. At that rate I’m paying myself $3.3 an hour. Should my pricing be different t for items that take such a long time to make?
Cristina
Thursday 10th of December 2020
I know you are discussing primarily making money as a cutter, but I have the same issue as another commenter when it comes to selling knit dishcloths. It takes me 4 hours to knit one (yes, I’m slow) and I can make 9 dishcloths with a large ball of Bernat cotton costing me $9. There is no way people will pay more than $4-7 dollars for a handmade dishcloth. Even if I was able to knit one in 1 hour, not sure I could sell it for $12.50 (minimum wage where I live).
Christine, Cutting for Business
Saturday 18th of May 2019
I don't crochet, so I don't have experience with this. Your rate shouldn't change. Sadly, to be competitive, you'll need to crochet faster or alter the product to stay competitive.
Madi Hunt
Thursday 3rd of August 2017
So, if I sell something for $20 how much do I pay myself.
Christine
Monday 7th of August 2017
The amount you sell an item for has nothing to do with how much you pay yourself. You first choose an amount to pay yourself, then figure out a selling price. After deciding how much to pay yourself, head to this post: https://cuttingforbusiness.com/2015/01/13/pricing-your-handmade-silhouette-or-cricut-items-for-sale/
Corinne Colbert
Friday 9th of June 2017
I am transitioning from my previous at-home career (freelance writer) to a crafts business (greeting cards and paper gifts). To determine my crafting hourly rate, I set up a spreadsheet of my freelance invoices over the past five years by client. I tossed the outliers -- the really big projects, the one-off small jobs -- and averaged the results. Then I subtracted that figure from what I need to earn to keep our budget intact.
I divided that figure by 1000: 20 hours per week for 50 weeks per year. That gave me an hourly rate that is above my state's minimum wage but well below my freelance rate (where I have 30+ years of experience!). If -- no, AS -- my crafts business takes off, I can cut back on editorial work and devote more time to crafting. As I gain experience in my craft business, I'll work more efficiently and so my hourly rate will gain in value.
Christine
Monday 12th of June 2017
Awesome! Thanks for sharing!