Cost & Pricing
Understand how CrafterBy calculates costs, allocates overhead, and how to price for profit.
How CrafterBy Calculates Costs
A step-by-step explanation of how CrafterBy calculates the total cost of a product, from raw material quantities through to overhead allocation, with a worked jewellery example.
Understanding Overhead
What overhead is, why it must be included in your product pricing, and the danger of only counting materials and labour when setting prices.
Overhead Allocation Methods
How CrafterBy's two overhead allocation methods work — per-product and by labour hours — with an example showing when each is more appropriate.
Understanding Profit Margin
What gross margin is, how to calculate it, how to work backwards from a target margin to a selling price, and what margins are realistic for craft businesses.
Understanding Markup
What markup is, how it differs from margin, and how to convert between the two — because confusing them leads to systematically underpricing your products.
Pricing for Profit: A Practical Guide
A five-step pricing approach for craft businesses: know your real cost, set your minimum price, research your market, account for sales channels, and review regularly.