Why you Aren't Making a Profit; How to Price Handmade Items

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  • čas přidán 1. 07. 2024
  • How to make a Profit Selling Homemade Items. How to Price your Homemade Goods to make a Profit. Why Small Businesses Don't Make a Profit. Formula To Price Homemade Items. Selling Skincare Products
    FORMULATION;
    (supplies + labor) x 2 + overhead = wholesale x 2 = retail
    VIDEOS I MENTIONED;
    ▸ How to Calculate Cost of Material - bit.ly/2Q4cLeD
    ▸ Etsy Fee's Explained - bit.ly/2K5ZWwo
    Patreon Shout Outs
    ▸ MusicalMoodRing - Instagram - @StardustBathandBody www.stardustbathandbody.com/
    ▸ Natures Farm Girl - naturesfarmgirl.com/
    ▸ Kennedi's Essentials - kennedisessentials.net/
    Kennedi's Essentials Review - • TaraLee Reviews; Kenne...
    ▸ LettsBlend - lettsblendllc.com
    Instagram - @ LettsBlend
    LettsBlend Review - bit.ly/2ExaHFM
    ▸ Rhys Porter / Creativy Wyth Lovy - creativywythlovy.me/
    ▸ WallFlower WildFlower - www.wallflowerwildflower.com/
    ▸ Heartfelt Beauty - bit.ly/2JJZkNw
    ▸ Sugared_Pineapple - bit.ly/2MhTVje
    ▸ KAJ Bath and Body - etsy.me/2YVRPeI
    ▸ Blue Mint Soaps - bluemintsoaps.com/
    ▸ Cetera - bit.ly/2ZySB1j
    ▸ Patreon - / taraleee
    OUTRO SONG
    ARTIST ▸ Scotty Weber - bit.ly/2gTlD77
    SONG NAME ▸ Savior - bit.ly/2DjqFna
    SOCIAL MEDIA
    ♥ Instagram - @TaraLeeSkincare
    SHOP MY ETSY
    ♥ etsy.me/2oJiLLJ
    ▸ If you have formulating questions please send them to...
    ▸ AskTaraLee@gmail.com
    ▸ Your question may be featured on my next Q&A
    Business Inquiries - TaraLeeSkincare@gmail.com
    I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites.
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Komentáře • 263

  • @TessieDobey
    @TessieDobey Před 4 lety +404

    I believe, Never Allow another person's budget determine your prices.

    • @TaraLeee
      @TaraLeee  Před 4 lety +22

      so true!

    • @truthspeaker2249
      @truthspeaker2249 Před 4 lety +6

      Tessie Dobey I agree a disagree cuz if they can find a cheaper price they r hooked in

    • @peacheskong2245
      @peacheskong2245 Před 4 lety

      Kind of inconsiderate towards your clients?🤔

    • @fancy3400
      @fancy3400 Před 4 lety +66

      @@peacheskong2245 if you think about it's not really because you are buying the materials and Spending your time making it and it wouldn't be fair to yourself to charge way to less than how much it took to make the item because then you would be cheating your own self out of the hard work you did.

    • @heavenlyescape1939
      @heavenlyescape1939 Před 4 lety +8

      Tessie Dobey my mama says the same thing!

  • @JulieOpia
    @JulieOpia Před 4 lety +2

    Thanks Tara!!! Your videos are really helping me especially with pricing and preparation.

  • @theewendialexis
    @theewendialexis Před 3 lety +1

    I really love your channel! So genuine and informative!I always learn something new.

  • @Coffeecup.0110
    @Coffeecup.0110 Před 4 lety +8

    I made liquid Castile soap tonight! I can’t wait til morning to see what it looks like! Thanks for your tutorials! Yours is the best I have found.

  • @MeetTheBratchers
    @MeetTheBratchers Před 4 lety +48

    You always come through with great content. You're amazing! We are launching our product on Saturday and have been watching your videos long before we started. Keep going with the great content, it's appreciated! ~Chyna

  • @marias8139
    @marias8139 Před 4 lety +4

    You are so sweet and very Genius!! Thank you so much for making life easier for so many new entrepreneurs out there who have just started out and looking for these tips and advice. Thank you

  • @sandyjackson827
    @sandyjackson827 Před 3 lety

    Great information Tara! Thank you SO much!

  • @toxicsoda8831
    @toxicsoda8831 Před 3 lety +2

    I'm actually working on opening my etsy and I was so lost about pricings and fees... and i found your videos and omg it helped me so much! Tysm!!

  • @nylevettemilligan8829
    @nylevettemilligan8829 Před 3 lety

    ABSOLUTELY WONDERFUL! Thanks Lady T!

  • @natashamitchell7783
    @natashamitchell7783 Před 2 lety

    You are a LIFESAVER!!! I want you to know that I sincerely appreciate your videos, and willingness to share your knowledge. I am trying to learn as much as possible as I start my small business. You are amazing! Thank you so much!

  • @ediths.q.3097
    @ediths.q.3097 Před 4 lety

    Thank you Tara for this video!. I really love your videos, there is always something to lean, thanks :)

  • @munazzasalahuddin4354
    @munazzasalahuddin4354 Před 4 lety +2

    Thankyou Tara Lee for this detailed and informative video. I am soon going to start my handmade soap and lip balm business. After watching your video things are clear for me now about how to price the product. Thank you once again

  • @lealiwag5701
    @lealiwag5701 Před 2 lety

    Super informative!!! Thank you for the breakdown!

  • @silviamtz8961
    @silviamtz8961 Před 8 měsíci

    Thank you so much for your formulation! It's overwhelming but VERY necessary.

  • @nia.aleese
    @nia.aleese Před 4 lety +1

    Another great video! Thanks for sharing❤️

  • @ladybugxoxo
    @ladybugxoxo Před 4 lety

    Omg it was totally kismet that you posted this today. I'm pricing today for my first etsy biz. Thank youuu

  • @Itsafreenqureshi
    @Itsafreenqureshi Před 3 lety +1

    Your doing a great job. Your videos are easy to understand & quite helpful. Thank You. :)

  • @annisanurulfirda5680
    @annisanurulfirda5680 Před 4 lety +10

    Just found this channel. You're such an inspirational!

  • @asmarhouma1585
    @asmarhouma1585 Před 3 lety +1

    Thank you so much Tara ❤️ I was thinking to start my Cosmetic Business and searching for proper guide then I came to your video nd I realized I'm on right place.... I am watching ur all videos and gonna make my brand soon....
    A big fan from Tunisia TN

  • @smallforestdweller6999

    You made that so simple to understand! Thank you so much!

  • @kimtaylor649
    @kimtaylor649 Před 4 lety +1

    Great info. I’m about to binge watch your videos

  • @sapphirehaynes5768
    @sapphirehaynes5768 Před 4 lety

    good work TaraLee thanks for a great insight

  • @aliatv8651
    @aliatv8651 Před 2 lety

    I needed this video ❤️ I can’t believe I didn’t come across your videos last year

  • @aininmardhiah
    @aininmardhiah Před 4 lety

    Thank you Tara for your great knowledge sharing..Love from Malaysia.

  • @andrenpitts1491
    @andrenpitts1491 Před 4 lety +1

    Awesome job on doing skin care products and good video on handmade goods

  • @beyoutifulintentions
    @beyoutifulintentions Před 4 lety

    Thank you so much this was very helpful!!!

  • @addisonday1
    @addisonday1 Před 4 lety

    This information is gold! Thx

  • @kayleighdunneofficial45

    Have been seeking on Etsy for a year now and I really needed this thanks

  • @rebeccariddle9537
    @rebeccariddle9537 Před 4 lety +5

    This is very helpful, thanks for sharing xx

    • @TaraLeee
      @TaraLeee  Před 4 lety

      I'm so happy you found it helpful! :)

  • @larajacquelyn
    @larajacquelyn Před 4 lety

    Love this vieo I really found it very helpful!

  • @thatssewbobbiejo4237
    @thatssewbobbiejo4237 Před 4 lety

    This is so helpful. Thank you

  • @anushka9463
    @anushka9463 Před 3 měsíci

    This is very informative, thank you. And your cat is super cute😍

  • @morex981
    @morex981 Před rokem

    Very informative, thanks.

  • @debra7449
    @debra7449 Před 4 lety +1

    Thanks for the great info, Love Your cat 🐈❤️

  • @SerenityJaeHandmade
    @SerenityJaeHandmade Před 4 lety +23

    Omg! Your god sent. I’m getting ready to launch my lip gloss business and this was the last step I needed. Thank you sooo much for sharing. You rock!!

  • @sarahsmiles3271
    @sarahsmiles3271 Před 2 lety

    Thank you. Starting my business now

  • @gayatri263
    @gayatri263 Před 11 měsíci

    Thank you Tara. God bless you

  • @withsoleil
    @withsoleil Před 4 lety +5

    Thank you very much! I was looking for this info for a long timeeeeee

  • @Robin-xd3nx
    @Robin-xd3nx Před 3 lety

    OMG ! THANK YOU , THANK YOU ! So much for making this video. I too make homemade products, and I didn't know how to price them. Who do you recommend for a organic soap supplier that does not use glycerin or vegetable oil?

  • @Helenjojoful
    @Helenjojoful Před 4 lety

    I found your channel today and I am hooked.

  • @Meesha-Gay
    @Meesha-Gay Před 2 lety

    Thanks very informative.

  • @hadeelahmad8624
    @hadeelahmad8624 Před 3 lety

    Thank you dear that was useful ❤❤❤❤

  • @julie2149
    @julie2149 Před 4 lety +1

    Great information! I am starting off my business what number should I be putting in for my overhead cost? This is all new to me.

  • @rosecultureofficial5758

    You're the best I love you !! Thank You so much!!!

  • @gogoshire
    @gogoshire Před 2 lety +9

    This was so helpful. I had been doing cost to make item and then adding it what I wanted my profit margin to be. I wasn’t adding in overhead or labor, or considering wholesalers retail. I went back to my first year and my overhead was high bc of equipment, so when I divided it by products sold, it was $7.20 per product! Seems like way too much to add on. I know this year will be lower, but it will still be high as I am still investing. Very glad I found your channel.

    • @secretbeautes1
      @secretbeautes1 Před rokem

      Can u help me understand the labor part if u don't mind me asking

    • @kendr444x
      @kendr444x Před rokem

      @@secretbeautes1 what don’t you understand? maybe i can help

  • @jennifersno6586
    @jennifersno6586 Před 4 lety

    New subscriber! This is very helpful!! What’s your background?

  • @Emo_gurlll
    @Emo_gurlll Před 3 lety

    I am hooked thanks i just started and I was hang up on price

  • @TheCocoglam1
    @TheCocoglam1 Před 2 lety

    throughout great... & last 2 mins awesome

  • @melaniestarr6454
    @melaniestarr6454 Před 4 lety +10

    Thanks this was very helpful! I am wanting to start a coffee body scrub business and need all the information I can get.

  • @MrHerks
    @MrHerks Před 3 lety +4

    This is such a great video! I’ve watched it twice now, I’m a new business owner (soap and stuffs) and don’t have a year or 2 to calculate overhead, how would I factor that in now so I wouldn’t have to raise my prices later? Thanks, appreciate you :)

  • @user-hx6by5es4j
    @user-hx6by5es4j Před rokem

    thank this helped a lot

  • @godsbabygirl1697
    @godsbabygirl1697 Před rokem +2

    Hi Tara thank you so much for your video very helpful. but how do you calculate the supply cost that you came up with $1.50 can you please show me

  • @Mah_fb
    @Mah_fb Před 3 lety

    Wooooww golden information

  • @HerbalistintheHood369
    @HerbalistintheHood369 Před 4 lety

    Fantastic thank you

  • @emilyclairefilice4435
    @emilyclairefilice4435 Před 4 lety

    Super cool video!

  • @hoodempress9082
    @hoodempress9082 Před rokem +1

    Hi Tara! I know I'm a little late to getting to this video, but I'm confused a bit. I'm just starting out, I gave myself an overhead cost of 150 for the rest of this year, but I haven't sold any items yet, although I plan to in late November. Should I do the formula for finding the overhead expenses based on what I plan to sell or hold off for now because I haven't sold anything. I want to have accurate pricing but I also don't want to base it off numbers that could still potentially change. Looking forward to hearing back from you!

  • @CMV314
    @CMV314 Před rokem

    Great video. That said, every business will have their own unique formula. For example, a high-end company using this formula may destroy their brand if the price comes out too low.

  • @shaniquapeterson8201
    @shaniquapeterson8201 Před 4 měsíci

    Hello your videos are amazing and right on time. I do have a question regarding oils, being im just starting out when it comes to oils(carrier) does it matter if they are "kitchen" type oils(from grocery store) vs actual cosmetic type oils(from a cosmetic website)? I have used Grapeseed oil by the pompeian brand which i get a 24oz for roughly 5.00 or so but have also been looking into ones on websites.

  • @rashisharma7956
    @rashisharma7956 Před 4 lety

    Really very useful.... I'm an indian bt i don't have any Indian youtubers making videos on these topics. Thanku so much for this..🙂

  • @victoriadorce4215
    @victoriadorce4215 Před 8 měsíci

    I don’t know how I found this channel ❤ This is my sign that God really wants me to start my business. This channel is Gold 😊 Your a blessing

  • @MehediHasan-yc7jd
    @MehediHasan-yc7jd Před 2 lety

    Hey Tara ! I like your video. Take love from Bangladesh.

  • @jamialaprince6556
    @jamialaprince6556 Před 10 měsíci

    Hi Tara, is the equipment that's used to make the product considered supplies or overhead?

  • @anitachaudhary7224
    @anitachaudhary7224 Před 4 lety

    Hi Tara thank you so much. My only questions is - As a beginner, I am struggling to calculate the price of one item that I make as I have bought a whole load of items! One of them would determine how many pots I will get but the others would last over a long period of time.for a long time.

  • @destinyarmstrong3887
    @destinyarmstrong3887 Před 4 lety +1

    I am very grateful for you and your videos. You are truly a blessing. I am in the process of starting my own skin care business. I have yet to start a youtube channel. How did you get started here and what was your challenges?

  • @777VIBRANT
    @777VIBRANT Před 4 lety

    Thank you

  • @michellemoseley9790
    @michellemoseley9790 Před 3 lety

    love this

  • @Pcomp234
    @Pcomp234 Před 4 lety

    What brands do you recommend for unrefined wholesale carrier oils ?

  • @Sooz3112
    @Sooz3112 Před 4 lety +10

    Very helpful. I charge a price I'm happy with...even though some potential customers may think my products prices are high - they take a lot of time to make. Each item is handmade. We have to make sure we put our products infront of the right buyer and show buyers why they 'need' our products. Thanks for the Etsy calculator x

    • @TaraLeee
      @TaraLeee  Před 4 lety +5

      Totally true!! handmade products take a lot of time and patience. Glad you found my video helpful :)

    • @chuchisbestlife9396
      @chuchisbestlife9396 Před 4 lety +1

      how did you calculate your overhead cost in the very beginning of your business? I am about to launch my business next month so I have no idea how many items I will sell in my first year.

  • @stephanienunez3924
    @stephanienunez3924 Před 2 lety

    Life saver 🙏🏽

  • @russellbarton7565
    @russellbarton7565 Před 2 měsíci

    I just started so I have to go through the cost so far. Haven’t gotten to the boxes and bubble wrap yet.

  • @annettewilliams0219
    @annettewilliams0219 Před 4 lety

    Thank you ! And where did you say i can get a paper copy from you 🧡

  • @EstherCordelia
    @EstherCordelia Před 4 lety

    I am making origami scrapbook kinda journal of everything you say and that blog. that taught you

  • @russellbarton7565
    @russellbarton7565 Před 2 měsíci

    I created my own hair growth formula but ofcourse there are only a million hair growth products on the market. As a bald man for nearly 20 years I know the majority of them are expensive and don’t work. But I have been using mine on myself so I know it works

  • @zeinahh6779
    @zeinahh6779 Před rokem +1

    Thank you so much, do you consider each empty jar or plastic container in the supplies or in the overhead?

    • @TaraLeee
      @TaraLeee  Před rokem

      suppliers. goes into the cost of item

  • @aimeedrews4291
    @aimeedrews4291 Před 4 lety

    What a good idea

  • @imeldatobing8898
    @imeldatobing8898 Před 4 lety

    Good on you

  • @camribulls1280
    @camribulls1280 Před 4 lety

    If we don’t have an overhead fee yet what do you recommend we put in place for that number to start?

  • @sharkweek44
    @sharkweek44 Před 4 lety

    Thanks

  • @kidszone818
    @kidszone818 Před 4 lety

    You are Godsend! xxx

  • @vaishalirajendran7477
    @vaishalirajendran7477 Před 4 lety +2

    Love love love ❤️ Lots of love to you 🙂

    • @TaraLeee
      @TaraLeee  Před 4 lety +1

      lots of love to you!!

    • @andrenpitts1491
      @andrenpitts1491 Před 4 lety +1

      @@TaraLeee did you paint your nails White

    • @andrenpitts1491
      @andrenpitts1491 Před 4 lety +1

      @@TaraLeee much Love to you 💛💙💜💚❤💖🖤💘

  • @everythingproof
    @everythingproof Před 4 lety

    This is useful. Even though I don’t have a handmade business

  • @fiona5894
    @fiona5894 Před rokem

    Oh TaraLee
    Amazing thank you so much I’m in Australia and our postage is huge but I’ve been seriously undercutting myself here this has been a fabulous video!
    I have emailed you and hope to get a reply soon

  • @rivameow
    @rivameow Před 2 lety

    I somehow accidentally found your video (the body oil recipe one) and at first you catched me with your vibe (unicorn vibes) but yeah after I watched that video I was like wow she's the real deal. Like your contents, I know these clips quite old now but hey how are you doing?

  • @Lubnamelhem
    @Lubnamelhem Před 4 lety

    Thank you teraa for inspiring me but I can't do shampoo it cost me too much difference in currency plus shipping :(

  • @drnatashahenry
    @drnatashahenry Před 4 lety

    Quick question . When I make a sale do I pay myself just the labor cost and put back the supply and overhead coat back in this business ?

  • @swativikas4997
    @swativikas4997 Před 3 lety

    Thanks..before watching this I was so confused

  • @LuckyyLEVEN
    @LuckyyLEVEN Před 3 lety

    How would you use the formula if you’re just starting out and can’t calculate overhead ? Can i still use the same formula eliminating the overhead part?

  • @layxlaani
    @layxlaani Před 3 lety

    How should you price the carrier oils, and essential oils per product stuff like that ?

  • @fejithegirlssdiary8413

    How do you make your distilled water ? Do you buy or make it

  • @thilinisoyza1237
    @thilinisoyza1237 Před 3 lety

    Thank u Tara.. this is so helpful 😘

  • @youngabelafashionhome9809

    Thank youuuuuuuuuuu soooooooooo muchhhhhhhhhhhhh I love you

  • @vekitten8322
    @vekitten8322 Před 2 lety

    OK, so, I've done my calculations, and it says I'll need to charge £7.53 for my lip balms. I need feedback. Does that seem too high? For lip balm?

  • @rularafiqabuelhassan7608

    Thank you Tara lee
    Can you teach me formulation by training course

  • @victoriadehoyos2217
    @victoriadehoyos2217 Před 3 lety

    If i havent been in business for a year yet how would i calculate overhead? Or would i leave that out for now?

  • @bpjog25
    @bpjog25 Před 4 lety +20

    How do you adjust you prices when you've already started low and now you need to raise the price?

    • @kioniwallace7949
      @kioniwallace7949 Před 4 lety +41

      Hi, what I do is slightly update the product (maybe packaging or add another ingredient) and reintroduce it with the new prices. I usually wait until the older one is sold out so there are no price clashes. Hope this helps!

  • @alyssaromero7470
    @alyssaromero7470 Před 3 lety

    Do I include the shipping with the supply cost?

  • @naushinaktar9683
    @naushinaktar9683 Před rokem

    Where do you learn making skincare products?

  • @hayleeanderson1786
    @hayleeanderson1786 Před 3 lety

    How can you determine if you didn’t use the entire item for instance, if I purchase a 4oz tea tree bottle and only use 3tbsp, how do I calculate that?

  • @Nicole-to6lu
    @Nicole-to6lu Před 3 lety

    Tara is awesome!!

  • @yoitsmagiic9970
    @yoitsmagiic9970 Před 2 lety

    What type of laptop/Brand are you using