Start with the true cost of making one item
If you only count beads, timber, wire or fabric, you will underprice yourself from the start. Every item carries more than materials. Think about glue, blades, sandpaper, packing, labels, electricity, transport to collect stock, and the odd spoilage when a cut goes wrong or a pour fails.
A useful method is to write down the cost of one finished piece from the first step to the last. If you make a candle holder in Braamfontein and need timber offcuts, stain, screws, sanding discs and a box for delivery, all of that belongs in the price. Even small things add up fast.
- Materials used in the finished item
- Packaging and branding materials
- Transport, courier or collection costs
- Rejected pieces, breakage and test runs
- Electricity, water and workshop consumables
Once you know the real cost, you have a base figure. Without that number, you are only guessing and guesswork makes it hard to grow.
Put a rand value on your time
Your time matters just as much as the materials. If a cutting board takes 90 minutes from measuring to sealing, that time must be charged for. Many makers leave out set-up, cleanup and admin, which means they are working for less than minimum wage without realising it.
A simple approach is to choose an hourly rate that you can defend. For example, if you want to earn R150 per hour for making and assembly, then a two hour item needs R300 added for labour. If the item takes skilled finishing or careful handwork, that rate can be higher. The point is to stay honest about what your hands and brain are doing.
- Measure the actual making time, not only the active cutting or stitching time
- Include sanding, drying, curing and packing time
- Charge for admin such as quotes, messages and invoicing
- Review your rate when your skills improve
If you are still learning, it is tempting to charge less. But price should not punish you for putting in hours. You need room to cover overheads and keep going during quieter months too.
Overheads do not disappear just because one item sold
Overheads are the costs of staying open. In Johannesburg that can include rent, storage, data, fuel, municipal charges, workshop maintenance and safety materials. In coastal areas you may also need to budget for rust protection, damp storage and extra care for timber or electronics because humidity can shorten the life of stock.
Load-shedding also changes the numbers. If you work with routers, heat tools, sewing machines or chargers, your backup power and downtime should be part of the price. A maker who absorbs those costs forever ends up subsidising every sale.
Split your monthly overheads across the number of items you expect to sell. If your shared space, consumables, insurance and admin come to R6 000 a month and you plan to sell 120 items, you need at least R50 per item before profit. That is the plain maths that keeps the business standing.
Use a pricing formula that you can repeat
Once you know your material cost, labour and overheads, build a simple formula and use it every time. That keeps your prices consistent whether you are selling at a school market in Soweto, a pop-up in Sandton or through a makerspace event in Durban.
A common structure is:
- Materials + consumables
- Labour at an hourly rate
- Overhead allocation per item
- Profit margin for growth and risk
For example, if a handmade notebook costs R45 in materials, R120 in labour and R35 in overheads, your base is R200. Add a profit margin, say 30 percent, and the selling price moves to R260. If the market is not ready for that figure, do not simply cut your labour to zero. Review the design, size or materials instead.
That is how makers protect quality without selling at a loss.
Know when a workshop item is underpriced
Some items look simple but take careful handwork, repeated testing or special tools. Others are easy to make but hard to sell because the market sees them as low value. A fair price should reflect effort, not just what a passerby thinks it should cost.
Watch for warning signs that your price is too low:
- You feel busy but your bank balance does not move
- You cannot replace tools when they wear out
- You dread repeat orders because they take too long
- Your cash gets tied up in stock and packaging
- You keep discounting just to close a sale
If that sounds familiar, raise prices on the next batch, not after you have exhausted yourself. It is easier to correct early than to rebuild margins later.
A Braamfontein example for local makers
Say a maker in Braamfontein produces small wall shelves for student flats and studio spaces. The timber, brackets, screws, sanding supplies and finish total R180 per shelf. Making and assembling each one takes two hours, and the maker values time at R140 per hour. Overheads add another R40 per shelf. That puts the real cost at R500 before profit.
If the maker sells at R500, there is no space for growth or mistakes. A better selling price may be R650 to R700, depending on finish quality, size and whether delivery is included. That extra margin helps cover replacement tools, slow months and future batch production.
In a city with transport costs, power interruptions and varied customer budgets, pricing needs to be practical not emotional. The goal is not to charge the highest possible amount. The goal is to charge enough to keep making.
For teams and schools, a simple pricing sheet also helps everyone use the same numbers. That avoids awkward negotiations and makes stock planning easier when orders come in from different parts of Gauteng or beyond.
