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Blogs for creatives who are looking to turn their handmade hobby into a productive and successful handmade business.

What Should I Charge For Labour Costs In My Handmade Biz?

Kerri Tutton


This is a SUPER DOOPER question and one that challenges many of us creatives.  

Firstly though, the fact that you have asked this question is fabulous so give yourself a pat on the back, as it means that you are thinking about your business product pricing seriously and you are not giving away your handmade products as a labour of love. (which is also fine btw - if you are running a hobby not a business).

So where to start?

For those of you that already have a job and your goal is to replace the day job, you may choose to use your current hourly rate to start with.  For those not earning what they want to earn, you may jump to calculating the hourly rate from a salary that takes your fancy.

Some of you may feel a bit awky about choosing an hourly rate, so your option is to add on a profit amount - go careful with this though as some of your handmade creations may take longer to make than others, you do want to have some consistency with your pricing to encourage your customers to trust they are getting a fair price.

Another option is to research what it would cost your business if you were to take on a staff member. Especially if you have a longterm goal to grow, you may need to consider at some stage paying an hourly rate, GST or VAT and Superannuation contributions perhaps.

Which ever way you choose to select your rate, the most important part now is to ensure you are incorporating the charges for the time you spend creating your product into your 'Cost Price'.  

Now for some of you, you may have lots of different techniques that you may need to consider.  As a jewellery maker I would often find that the time I spent on a new technique/design would often shorten the more I practiced, so be sure to re-asses the timing of your labour, to ensure you are charging correctly.

Then when you feel that you are more experience, you may decide to increase your rate (you are after all the boss now, so don't forget to give yourself a pay rise).

Once you have established your business and you want to move to the next phase, it would even be worth your while to consider other labour costs to your business such as time spent on:

  • Packaging
  • Quality Assurance Testing
  • Taking Product Photographs 
  • Listing Products
  • Delivering Products to the Post Office
  • Financials
  • Procurement of Business Materials
  • Conference and Meetings

Remember your day job, there is someone being paid to do all of the above, don't think for a minute that just because you are running a handmade business that you don't qualify to charge for it as well, just remember, who would you be paying if you had a staff member to do your job!

That's right - make sure you pay yourself and know your worth.

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The Handmade Comparison Trap

Kerri Tutton

'Her stuff is amazing, I love her work, omg look at her photo's they are perfect, is that what she is charging? Wow look how many followers she has, I wish I had that many, how did she get so many so soon? oh my goodness her website is awesome, uh - another day without a sale, I just don't think my work is good enough, what's the point - I just can't see myself quitting the day job at this rate.'

Does this sound familiar?  Does this sound like your negative self talk? Is it shortly followed with a burning sensation that connects with feelings of inadequacy, a little bit of jealousy and a low self esteem? Only to be wrapped in a deep upset that you want to be successful so badly but you just can't see yourself getting there and 'how is she making it look so easy?.

Okay darling, let me pour you a Kezza strength G&T and give you a sisterly slap around your beautiful chops. JUST STOP.


  • Stop focusing your start with somebody elses middle
  • Stop thinking about how many sales they are making - you really don't know
  • Stop assuming all those followers are real (did you see how many likes they got?)
  • Stop looking at their biz thinking its all roses then homing in on your biz worts
  • Stop the negative self talk
  • Stop underestimating yourself
  • Stop holding yourself back

*Unless your doing valid relevant market research with another large Kezza G&T


  • Start appreciating everything you have achieved so far in your business
  • Start planning what else you would like to create 
  • Start thinking about other creative ways you can bring an income into your business
  • Start being strategic about encouraging more followers to check out your feed
  • Start creating clarity on what your idea of business success is
  • Start talking to yourself positively about your business
  • Start challenging yourself 
  • Start backing yourself

It is not sustainable to be stuck in the rut of a comparison trap, your business will fail little by little bit by bit because your energy is focussed outwards not inwards.

If you are going to look at another creatives business, look at what they are doing right and acknowledge how wonderful it is with humble appreciation, perhaps consider professionally critiquing what could be done better, look at what works and acknowledge that there are awesome business women out there - JUST LIKE YOU.

Try not to allow your developing self esteem and confidence be reduced because you didn't have the strength to think positively about what you are creating.  Understand that nobody in business has all the answers and that we are all learning something new every single day, we are all making mistakes and we all have off days.

Creating a small business to a level of success that replaces a consistent income takes time, it takes patience, resilience and lots of mistakes.  You need to go out into the world and put your flag in lots of places pointing them to your place.  

You have got to get busy being so good that everyone else is looking at you and admiring your work.

You have got this -  get out of the comparison trap and get busy loving your work.

Kez x 


How is your relationship with money effecting your business decisions?

Kerri Tutton

Handmade Biz Planner Blog How is your relationship with money effecting your business decisions

This is a really interesting subject matter and can also be quite confronting, it is also an essential area of life to be totally honest with yourself in, as well as visiting with an open mind to see where you can improve.

The purpose of this blog is to trigger an assessment of your relationship with money, to encourage you to review your history learning about money and see where you developed your attitudes towards money.  It is also an opportunity to review the language you use when you talk about it and think deeply about how money makes you feel. 

Then consider all this information and reflect on how your relationship with money is effecting the way you run your business.

I have to admit my relationship with money has changed massively and it has taken years of practice to get to where I am at now (and believe me there is still room for improvement).  

In a bid to help you and at the same time learn more about myself, I'm going to share my story with you in case it resonates, strikes a cord or drops a seed in a bid to hopefully help you along your way with your relationship with money. 

My introduction to the world of money was watching both my mum and dad work over 12 hours a day, 7 days a week managing their own newsagent and grocery business.  They worked hard and their answer to when the finances got tight was to take out more debt, this was a repetitive cycle until it became unmanageable, when the final solution was to sell the business, the house and start again debt free.

This was sustainable for a few house moves until the housing market crumbled and there was no where else to go but manage the debt.  Without the proper tools and guidance to change their behaviour (as this wasn't an era where people went outside for help) this created a lot of stress and anxiety which meant lots of arguments in our household on the topic of money and not being able to buy what was wanted and in many cases, what was needed.

This foundation of learning sent me off into my twenties determined to earn lots of money so  I could buy whatever I wanted when ever I wanted it. (yes I know - naive little thing wasn't I?)

I unknowingly took on my parents programming with finances. That time in my life was mainly spent sticking a card in a cash machine pressing my digits and crossing my fingers, if there was too much month at the end of the money I'd go into debt to go out, my budget put entertainment on each line and all the essentials were last, there was no such thing as savings and I used the words, 'I'm broke', 'I can't' or 'its too expensive' a lot, as I was constantly living in the 3.5 week low self esteem fog after payday.

I unconsciously associated with a belief that I needed to be earning as much money as possible to survive this financial lacking, so I jumped around the city of London taking pay increase after pay increase without much thought for longevity, wellbeing or developing a specialism.  Of course this was not sustainable, as soon as September 11th disaster hit, the whole city went in lockdown.

Then I realised that earning money wasn't the answer, it was how to be smart with the money I had worked hard for and make it work for me that was key.  That key of course took another 10 years to find the door of evolution as my road to personal development was delayed somewhat. I still hadn't worked out what was important to me yet as I was too busy partying in Ibiza!

Once making the effort to improve my relationship with money, it became obvious I had spent a significant amount of my life being programmed and programming myself with a language associated with money that was very negative. I used money (or lack there of) as a reason not to do things in life and I had also created an unhealthy association with low self esteem and my low financial status.

When analysing whether a product was worth the price tag I had made an association with the word 'expensive' to my current financial lacking or inability to afford that product.  It hadn't occurred to me to qualify it if was worth the price by comparing it to a similar product on the market.  I certainly never considered how much time and effort went into the creation or distribution of that item, the materials it was made out of or what was behind the brand of the product. 

So imagine the damage I was doing to my first handmade jewellery business when I left for home after no sales at the end of a day at the markets, with a low self esteem my mistake was to naturally assume my prices were off, reduce them and return to that emotional fog of the post payday of 3.5 weeks.

This would spiral into 'The Handmade Comparison Trap' and I would question my own business existence, my own talent and eventually my own existence in the future of creating my own successful business, which as we all know isn't a winning formula for success.

It was time to change my relationship with money and here are four tips on how I accomplished this;

Make a choice to develop a different relationship with money

It starts right here.  Any personal mission that you decide to journey on starts with you making a decision to be better than what you are now.  It doesn't start with your partner nagging you to make a change (as that change is to cull the nagging).

Make a deal with yourself, an agreement a bet or a challenge.  Encourage yourself with positive self talk, give yourself a goal no matter how small and treat yourself after you have achieved it.

Any teeny tiny change in your world - starts and ends with you and don't delude yourself into thinking that spouting affirmations of each morning with no follow up or action is going to win you that race - its not. Think about what you need to do, talk about what you need to do, then action what you need to do, it is your behaviour that will determine the outcome.

Remove emotion from financial decisions

Have clear reasons and benefits for making a financial decision in your business.  Ask yourself if you expect there to be a return on investment?  If so when?

If you are in start up mode and keen to buy a new application product to support your business, ask yourself if there is a free or lower cost version.  For example; Are you really ready for a $200 inventory application for your 3 months old business? or would you benefit from writing your inventory out in the beginning using paper or and xls spreadsheet? 

Reprogram your financial language

Are you the mate that your friend calls who is always talking about how broke you are, always talking about the bills that need to be paid?  Do you often use words like 'I can't' or 'it's too expensive' in reference to money? 

Alright let's be brutally honest, 'you actually can' - you are just choosing not to. You have a choice on how to spend your money, you have control to bring more money in and you control the money the money does not actually control you. (sound like a pep talk? - good, it is).

Start by being more positive about the way you talk about abundance and be grateful for what you have in your life and you will start to see more of this visual developing.  The quicker you change your thought process on how you think and feel about money and how grateful you are with everything you have right now - the quicker your language will change and your experience with it.  You may even find that your mate calls you more often!

In summary, make a choice to address improving your relationship with money and explore decisions that make good common sense for your business. Be honest with yourself re money and definitely encourage yourself to speak and think positively about money.

You will be much much happier in the long term.

Kez x