How to include overhead in product pricing: candle makers vs jewellery makers

The method

1. Add up your monthly overheads: software, website, tool replacement, insurance, workspace and so on.
2. Estimate how many items you realistically make in a month.
3. Divide.

Overhead per item = monthly overheads ÷ items per month

Same overheads, different makers

Both makers have £120 a month of overheads.

• Candle maker pouring 200 candles a month: £120 ÷ 200 = £0.60 per candle.
• Jewellery maker making 40 pieces a month: £120 ÷ 40 = £3.00 per piece.

Lower-volume makers need to carry more overhead per item, which is one reason one-off pieces usually need higher prices.

Use a realistic volume

If you base the share on your busiest month, quieter months won't cover your overheads. A cautious average is safer.

Try it with your own numbers in the free CraftMargin calculator. It works without an account.