Given the continuous lockdown in the Philippines, which brought about the advent of homemade and handmade based businesses, I thought I would post about the real cost of genuinely handmade products and why they SEEM expensive.
Take, for example, my work in progress pictured in this post. This will eventually be an oversized jacket/ cardigan.
I am using Dapper Dreamer Summer from gantsilyo.com. It is 100% cotton and is meant for garments. It costs P150 per roll.
By my estimate, I will be needing 10 rolls of this yarn to finish my work. That puts the material cost at P1,500.00
Now, it will take me more or less 40 hours or five 8-hr workdays to finish the piece. The minimum wage + Cost of Living Allowance in Cagayan is P370. That puts the labor cost at P1,850.00
Material and labor cost combined, this brings the production cost at P3,350.00
Now, assuming I make crocheted garments for a living, and do it as a business, I should at least add a markup. If I impose a 25% markup, and I ENCOURAGE CRAFTERS TO DO SO TO KEEP UP INDUSTRY STANDARDS, that adds P837.5 to the retail price.
Mind you, that’s P837.5 for 5 days of work. That means I would make a profit of P167.50 per day.
Adding all these up, the retail price of my finished crocheted jacket/ cardigan is P4,187.50. This does not even include marketing, packaging, and shipping costs, taxes, and other overhead expenses.
In the US, crafters and makers would charge thrice the material cost of the product. In that case, my jacket/ cardigan would be priced at P6,000.00.
Now, a P4,000- P6,000 priced jacket seems expensive, but remember- you are paying for the long hours it takes to finish a piece, the hours of practice to be good at someone’s craft, and (possibly) the premium materials used for the piece, as well as having the privilege of wearing a one of a kind item. Remember #HandmadeIsLuxury.
I am privileged that I craft when I want to, and can more or less freely invest in my hobbies. If you know me even just from the online world, you might notice I jump from one type of craft to another- because I like the challenge and I genuinely just enjoy learning and figuring things out.
However, there are people out there who aim to turn their passion into businesses, and are doing so. Please do not be one of those #ChoosingBeggars. Expect that handmade items will have a premium price, because they are premium items.
For crafters out there, please do not balk when it comes to your pricing. Know the worth of your time and your work. Remember, when you stay firm with your pricing, you help maintain or increase industry standards, which benefits you and the whole crafting community.