Still using the mythical “Materials x 3” rule to price your handmade products? Let’s fix that.
You’ve probably heard this one before ———
“Just multiply your material costs by three.”
It sounds simple, feels quick, and might even sound fair….
until tax time rolls around and you realize your “profit” barely covers your coffee budget.
That’s because this popular formula (and many others) quietly undervalues your time, your creativity, and your entire business.
Sound familiar? You’re not alone.
Short on time? Skim the bold takeaways below 👇
👉 “Pricing based on vibes isn’t pricing — it’s guessing.”
Why “Materials x 3” Misses the Mark
That “multiply by three” rule assumes your labor, overhead, and profit can all fit neatly inside that magic number.
But here’s the truth:
- It ignores your time – all those hours designing, making, packaging, photographing, posting, and selling
- It overlooks your overhead – website fees, booth costs, packaging, shipping supplies, and that glue gun that eats up electricity.
- And leaves profit to chance – hoping there’s “something left over” instead of planning for it.
The same thing happens when you listen to coaches who say “just figure on paying yourself between x and y dollars an hour” or “use the minimum wage rate for your state”.
👉 “In short, these are shortcuts that shortchange you.”
You Deserve to Get Paid – Not Just Cover Costs
Too many makers price their work based on:
- What feels “right”
- “What people are willing to pay”
- Or a random number some handmade business coach tossed out
Instead of actually paying themselves a real wage — one that includes taking money out of the business as an Owner’s Draw and ensures the business itself is profitable.
So let’s set the record straight right now:
👉 “You’re not “just” a maker.
You’re a full-blown, multiple-hat-wearing CEO – and CEOs don’t work for free.”
You’re also a:
- Creator
- Packer
- Marketing content creator
- Customer service rep
- Bookkeeper
- Salesperson
And CEO’s don’t price based on vibes.
They price to get paid.
Why a Fair Hourly Wage Actually Matters
Even if you price per piece (not per hour), you still need to know what your time is worth.
Otherwise, you’re probably underpricing — without even realizing it.
Knowing your fair hourly rate helps you:
- Calculate accurate, fair prices for your handmade items
- Evaluate whether an item is really worth your time
- Understand what you’re actually making (after materials and overhead)
- Build a sustainable business — not just a stressful side hustle
This isn’t about greed.
It’s about sustainability.
👉 “If you don’t know your hourly rate, you’re probably underpricing — without realizing it.”
So … What Is a “Fair” Hourly Wage?
Let’s talk real numbers for a second.
According to the U.S. Bureau of Labor Statistics, the average hourly wage for Craft Artists falls roughly between $10 and $32 per hour (about $21,000 – $68,000 per year), depending on experience and specialization.
(You can see the full BLS data here if you’re curious.)
Yep — there are actual wage benchmarks for us handmade business owners.
Which means when someone tells you to:
- Use “materials x 3”
- Pay yourself $10-$20/hour
- And add a tiny buffer and call that “profit”
they’re guessing.
And guessing doesn’t build a profitable business.
👉 “Most pricing advice isn’t wrong because it’s mean — it’s wrong because it’s guessing.”
A Smarter Way to Find Your Fair Hourly Wage
By now you might be wondering:
“Okay … but how do I figure out my number?”
That’s exactly why I created my Free Fair Wage Calculator.
In about 30 minutes, it helps you figure out a fair hourly wage that feels both realistic and respectful — without spending hours crunching numbers.
Here’s what you enter:
- A realistic monthly amount you want to pay yourself
- The hours you actually have available to work
- Last year’s business expenses
- Your tax rate (from last year’s tax return)
- Your desired annual profit percentage
And the calculator does the heavy lifting by:
- Calculating an hourly overhead rate
- Figuring out how much you should be setting aside for taxes
- Coming up with your monthly and annual revenue goals
- And calculating your real fair hourly wage
👉 “No guessing, no guilt, and no more “materials x 3” nonsense.
Just real numbers based on your business.”
Once You Know Your Rate … Use It
After you figure out your fair hourly wage:
- Apply it to all new pricing going forward
- Write it down. Own it. Use it.
- Maybe update the prices on the finished items you still have in inventory
Because if you don’t value your time, no one else will.
You’re not charging just for the minutes (hours) it takes to make an item.
You’re charging for your experience, creativity, trial and error, and skill.
👉 “Stop shortchanging yourself.
Set your rate like a business owner.”
Ready to Find Your Fair Hourly Wage?
Pricing your handmade products isn’t just math – it’s about self-respect.
When you understand the numbers behind your goals, you’re not just charging more …
your building something sustainable.
👉 Grab the Free Fair Wage Calculator here and find out what you really deserve to earn.
And if this post hits home, share it with your maker friends.
The more we talk about fair pay, the faster we change the handmade industry.
