How to Price Your Homemade Products in India (and Still Make a Profit)
Pricing is where many home businesses go wrong. Sellers look at what others charge, go a little lower to get orders, and only later notice that after materials, packing and delivery there is almost nothing left. Some are working for free without realising it.
This guide gives you a simple way to price homemade products, whether you make cakes, candles, resin art, jewellery, crochet, pickles or clothes.
Step 1: Add up the cost of materials
List everything that goes into one piece: raw materials, colours, fragrance, threads, jars, labels and so on. If you buy in bulk, divide the cost by how many pieces it makes.
Example for one scented candle: wax, wick, fragrance, jar and label might come to ₹120.
Step 2: Add packaging
Boxes, bubble wrap, tissue, stickers, thank-you cards and tape all cost money. Many sellers forget this. Add it per piece, for example ₹25.
Step 3: Pay yourself for your time
Your time is worth money. Decide a fair amount per hour and multiply it by the time one piece takes, including buying materials, making, photographing and packing.
Example: if a candle takes 20 minutes and you value your time at ₹150 an hour, that is ₹50.
Step 4: Add the costs of running the business
A simple way is to add 10 to 15 percent on top of steps 1 to 3 for these.
- Payment fees on online payments
- Your website or app
- Photos, ads and samples
- Products that break or do not sell
Step 5: Add your profit
Profit is not the same as your time. It is what lets your business grow: buying more stock, better packaging and new designs. Add 20 to 40 percent depending on your product and how special it is.
The candle example, added up
That gives about ₹283, which you might round to ₹299.
- Materials: ₹120
- Packaging: ₹25
- Your time: ₹50
- Running costs (about 12%): ₹23
- Profit (about 30%): ₹65
Delivery: charge it or include it?
- Show a delivery charge, and offer free delivery above an order amount, for example free above ₹999. This makes customers add one more item.
- If you deliver in your city yourself, you can charge less locally than for courier orders. Some stores set a different delivery charge for each state.
How to check your price
- Compare with sellers whose quality is similar to yours, not the cheapest ones.
- Handmade, personalised and gift-ready products can be priced higher. Show why in your photos and descriptions.
- Watch your first 20 orders. If almost everyone buys without a question, you may be priced too low.
Show prices clearly
Customers trust sellers who show their prices. "DM for price" loses many buyers. Put every product with its price, sizes and delivery charge on a website, so customers can decide and order on their own.
Start selling with clear prices
On Ownezzy you can set a price for each size, show a discounted price with the original crossed out, set a delivery charge with free delivery above an amount, and run coupon codes for festivals. Pick a design for your kind of business on ownezzy.com/websites and try it free for 7 days. After that it is ₹399 a month with 0% commission.