Most makers underprice. Not because their work isn't worth more, but because the price leaves out their time, packaging or the marketplace fees. Here is a simple formula that covers everything, with a worked example. You can try it with your own numbers in the free handmade pricing calculator.
Materials per item = pack price ÷ pack size × amount used. Include the shipping you paid on supplies.
Labour per item = minutes per item ÷ 60 × your hourly rate. Pay yourself a real rate, not what's left over.
Overheads per item = monthly overheads (tools, software, studio, fees) ÷ items you make per month.
Cost per item = materials + labour + overheads + packaging.
Wholesale price = cost × 2. Retail price = wholesale × 2. This "2 × 2" rule leaves room for shops and for sales; adjust it to your market.
Online price: check it after fees. The lowest price that still hits your target margin is (cost + postage you pay + fixed fees) ÷ (1 − percentage fees − target margin), minus the shipping you charge.
Materials (wax, fragrance oil, wick, jar, label) come to $5.33. Pouring takes 5 minutes per candle at a fair hourly rate, plus a share of monthly overheads. Total cost: $7.60.
With the 2 × 2 rule that gives $15.19 wholesale and $30.38 retail. Sold on Etsy at $26, after all fees, you keep $15.48, a 59.6% margin.
Leaving out your time, or pricing it at a few dollars an hour.
Forgetting packaging, labels, thank-you cards and the shipping on your supplies.
Ignoring marketplace fees on shipping. Etsy charges its 6.5% on shipping too.
Copying the cheapest competitor. Their price may not cover their costs either.
Never updating prices when supply costs go up.
The free calculator handles one product at a time. If you sell many products, these spreadsheets keep a material library, recipes and a full price list in one place (Excel and Google Sheets):
What hourly rate should I use?
At least what you'd accept for a regular job doing similar skilled work. If the price that gives you looks too high for your market, make the product faster or cheaper to make rather than working for less.
Do I need wholesale prices if I only sell online?
It's still useful. A wholesale price tells you whether you could ever sell to shops, and it keeps your retail price honest.
How often should I review my prices?
Whenever a supplier changes prices, and at least once a year.