Start with the full cost of one unit, not just materials
If you only count fabric, timber, clay, resin, threads or print stock, your price will be too low from the start. Small batch work carries extra labour because every piece is handled more often, setup takes longer, and wastage hits harder when you are not spreading costs over hundreds of units.
Work out the true cost of one finished item. Include raw materials, trims, packaging, labels, printing, machine use, utilities, courier packaging, and any spoilage. If you make in Braamfontein, Soweto or Pretoria and your power is interrupted by load-shedding, add the cost of backup power or lost time too. That may be generator fuel, battery charging, or simply longer production hours.
- Materials and consumables
- Labour per unit
- Packaging and presentation
- Electricity, water and transport
- Wastage, rejects and breakage
A clean starting point is this: cost per unit should be written down before you decide the selling price. If you skip that step, discounting becomes a guess instead of a choice.
Price your time as a business input, not a favour to the customer
Many makers undercharge because they see their own labour as free. It is not free. Cutting, sanding, stitching, assembling, photographing, boxing and answering messages all take time. If you do not assign value to those hours, your business is carrying hidden losses.
Choose an hourly rate that reflects your skill and local market reality. Then estimate the minutes spent per unit. A product that takes 20 minutes to make still needs allowance for prep, packing, admin and follow up. If you quote a flat price for a custom order, include revisions too, because clients often change details after the first version is agreed.
- Make time
- Prep and setup time
- Admin and customer communication
- Photography and listing time
- Packaging and handover time
For example, a set of hand-finished items made in Durban may look simple to the customer, but if each one needs careful drying time, a second coat, and manual quality checks, your labour cost should reflect that. Otherwise you are working long hours for very little return.
Build overheads into every piece, even if the numbers feel small
Overheads are the costs that keep the business running whether you sell one item or twenty. Small batch makers often forget them because they are not tied to a single product. But if they are not included, they quietly eat into cash flow.
Think about rent, internet, phone data, bank charges, market stall fees, municipal permits where needed, transport to drop-offs, and the cost of keeping stock safe and organised. In coastal areas like Cape Town and Durban, humidity can affect raw materials and finished goods, so storage and packaging may need a little extra care. That is part of the cost of trading, not a side issue.
A simple way to handle overheads is to work out your monthly business costs, then divide by the number of units you expect to sell. Add that amount to each item. It does not have to be perfect, but it must be consistent.
Use a margin that supports growth, not just survival
Once you know your true cost, add your margin. Margin is what allows the business to grow, replace tools, take on help when orders increase and survive slow months. If your price only covers cost plus a tiny mark-up, one bad month can wipe out your progress.
For limited-run products, pricing should also reflect scarcity and skill. A small batch usually means more manual work per item, more quality checking and more variation in materials. Customers often value that, provided you explain it clearly. You do not need to sound fancy. Just be direct about what the product is, why it is made in a limited run, and what makes each piece worth the price.
- Cost of goods
- Overheads allocation
- Target margin
- Future replacement costs
- Buffer for returns, defects and slow sales
If your final figure feels high, test it against similar products in your market, but do not race to the bottom. Competing only on price can trap you in low margins and make your work harder to sustain.
A Johannesburg example: a 30-piece run priced for reality
Say a creator in Braamfontein is making a 30-piece run of small homeware items for a showcase and online sale. The materials cost R1 800, packaging is R420, and transport to a mentorship event and a market pickup is R280. The maker spends 12 hours producing the batch and values their labour at R180 per hour. That is R2 160 in labour.
The total before overhead allocation is R4 660. If monthly overheads are estimated at R3 600 and the batch represents one quarter of the month’s output, add R900. The real cost is now R5 560, or R185.33 per unit before margin. If the maker wants a 40% margin, the selling price lands at about R259 per unit.
That kind of working helps you see whether the item belongs in a premium market, a gift market or a trade fair setting. It also helps you decide whether to sell single units, bundles or custom orders. If the price is too high for the target buyer, you can adjust the design, reduce finish time or change the pack size instead of cutting your margin.
Discounting rules that protect the maker
Discounts can move stock, but only if they are planned. Random price cuts make customers wait for specials and can train them to undervalue your work. Set rules in advance so discounting supports cash flow instead of damaging it.
Use discounts for clear reasons such as end-of-season stock, volume orders, show specials or launch pricing. Keep them time-bound and limited. If a buyer wants a lower price for a larger order, work out whether the reduced margin still leaves enough room to cover overheads and your own time.
- Offer discounts only with a clear reason
- Set a start and end date
- Protect custom and rush orders from casual discounting
- Never discount below your true cost
- Use bundles before cutting single-item pricing
In practice, a bundle of three may be easier to justify than a flat markdown on one item, especially when your production is already tight.
Keep your pricing notes simple enough to use every month
The best pricing system is the one you can actually keep using. You do not need a complicated spreadsheet with too many formulas. You need a clear record of what each product costs, what it sells for, and where the money goes. That helps when you revisit prices after material increases, slower sales or higher delivery costs.
Review pricing at least once a quarter. If supplies from a local wholesaler rise, if courier rates change, or if your batch size gets smaller, update your figures. A small increase is easier for buyers to accept when it is explained calmly and honestly.
Small batch makers who stay profitable usually do three things well: they count every cost, respect their own labour, and price with enough room to keep going. That is practical work, not theory, and it is what keeps a maker trading through the busy months and the quiet ones too.
