How to Price Custom Orders as a Maker (Simple Formula)

To price handmade items and custom orders, add up your materials, your time at a fair hourly rate and your overheads, then add a profit margin. That total is your starting price. Adjust it for setup, rush jobs and quantity, and put it all in a clear written quote.

The simple formula

Price = materials + labour + overheads + profit

• Materials: everything that goes into the piece, including waste and failed attempts.
• Labour: the time you spend, multiplied by an hourly rate you set. Include design, setup, making, finishing, packing and customer messages, not only machine time.
• Overheads: a share of your running costs (see below).
• Profit: a margin on top so the business can grow, replace kit and cover quiet months. The right margin depends on your craft and market; the worked example below uses 20%.

If you are working out how to price crafts for the first time, start with this formula and test it against what similar makers charge in your area. Pricing handmade crafts in the UK is partly about confidence: customers who ask for something custom expect to pay for your time and skill.

Count your overheads

Overheads are easy to forget, which is the main cause of underpricing. Think about:

• Machine wear and replacement (printer nozzles, blades, laser tubes, needles, heat presses)
• Electricity and heating the workspace
• Software subscriptions and design tools
• Packaging, labels and postage supplies
• Platform or payment fees, if you use any
• Insurance and workshop costs

Add up a typical month, divide by the number of hours you work or orders you complete, and include that share in every quote.

Design and setup fees

Custom work often needs time before anything is made. A separate design or setup fee is a fair way to cover it, for example artwork preparation, digitising an embroidery file, laying out a vinyl cut or setting up a 3D print. You can offer to waive or reduce it on repeat orders when you can reuse the files.

Rush fees, minimums and quantity discounts

• Rush fees: if a customer needs it faster than your normal turnaround, an extra charge (often a percentage on top) pays for rearranging your schedule.
• Minimum order or minimum price: set a lowest price per order so small jobs still cover your setup time.
• Quantity discounts: repeating the same job is faster, so a lower price per item for larger orders is reasonable. Work out the real time saving first.

Deposits

For custom, personalised items that cannot be resold, many makers ask for a deposit (often a portion of the price) before starting, with the balance due before dispatch. It protects your materials and time. Agree this with the customer upfront.

Quote clearly in writing

A clear quote prevents most misunderstandings. Include:

• What is included (size, materials, colours, quantity)
• Number of proofs and revisions included, and the cost of extra ones
• Price, deposit and when the balance is due
• Turnaround time and any "needed by" date
• Postage method and cost, or collection details
• Anything you need from the customer (a clear image, permission for any brand artwork)

If a design involves a logo, club crest or cartoon character that is not the customer's own, you need permission to reproduce it, so ask for an original design or the customer's own artwork.

Avoid underpricing

Underpricing is the most common mistake. Tips:

• Record your actual time on a few jobs to see how long things really take.
• Pay yourself an hourly rate you would accept from an employer.
• Do not compare yourself only with mass-produced or overseas prices, since custom work offers something different.
• Review your prices every few months as materials and costs change.

A worked example (illustration only)

These are made-up numbers to show the method. Say you are making 10 personalised wooden name signs:

Item	Cost
Materials (wood, paint, hanging hardware)	£30
Labour: 5 hours at £15 an hour	£75
Overheads: machine wear, electricity, software, packaging	£15
Subtotal	£120
Profit margin (20%)	£24
Total for 10	£144

That is £14.40 each. Add a £10 design fee for the artwork, and postage charged separately at cost, and the quote for the customer is £154 plus postage. Your own figures will differ, so use your own costs and times.

UK basics (check the details)

If your income from selling (before expenses) is more than the £1,000 trading allowance in a tax year, you generally need to register as self-employed with HMRC and file a Self Assessment tax return. You must register for VAT if your VAT-taxable turnover goes over the VAT registration threshold in any rolling 12-month period, so check the current figure on GOV.UK rather than relying on a number you saw elsewhere. If you are unsure, speak to an accountant.

Questions people ask

How much should I charge per hour?

Choose a rate that reflects your skill and covers a fair wage. Many makers start by thinking about what they would earn in a comparable job, then adjust for their market.

Should I charge for design time?

Yes, either built into the price or as a separate design fee. Setting this out in your quote avoids surprises.

How do I handle unlimited revisions?

State how many revisions are included in your quote, and charge a set fee for extras.

Do I need to charge postage separately?

You can include it or list it separately. Be clear either way in your quote.

Ready to find customers? Head to Hire a Maker for makers to create a profile. Being listed is free, paid plans let you reply to customer requests, and there is no commission on your sales. See also how to brief a maker to understand what customers include in their requests, and explore 3D printing costs for a craft-specific example.