⚠️ Be Careful How You Use Your Calculator in Handcraft Pricing & Costing

Many handcraft businesses struggle not because their products are not beautiful — but because of incorrect pricing and costing. One of the most common and dangerous mistakes happens right on the calculator.

The image you shared perfectly demonstrates this problem.

🔢 Understanding the Calculator Mistake

Example shown in the image:

  • 130 + 100 × 5 = 630
  • (100 + 130) × 5 = 750

Both use the same numbers, yet the totals are different.

Why?

Because calculators follow BODMAS / PEMDAS rules:

Brackets → Orders → Division → Multiplication → Addition → Subtraction

This means:

  • Multiplication is done before addition
  • Unless you use brackets

🧵 What This Means for a Handcraft Business

In handcraft businesses, pricing usually involves:

  • Material cost
  • Labour cost
  • Overheads (transport, electricity, tools, packaging)
  • Profit margin
  • Quantity ordered

If these costs are not grouped correctly, your final price will be wrong.

💥 Common Pricing Mistake Crafters Make

Many crafters calculate like this:

Labour + Materials × Quantity ❌

This only multiplies materials, leaving labour counted once — which is incorrect.

Result:

  • You underpay yourself
  • You make losses on bulk orders
  • Your business becomes unsustainable

✅ Correct Pricing Method (Very Important)

Step 1: Calculate cost per item

Combine ALL costs for ONE item:

  • Materials
  • Labour
  • Overheads
  • Profit

Step 2: Multiply by quantity

Once you have the correct unit price, multiply by how many items are ordered.

📐 Correct Formula for Handcraft Pricing

Basic formula:

(Materials + Labour + Overheads + Profit) × Quantity

This ensures: ✔ Your time is paid
✔ Your materials are recovered
✔ Your business costs are covered
✔ Your business grows

💍 Practical Example: Beaded Earrings

Cost per pair:

  • Materials: R100
  • Labour: R130
  • Overheads (packaging, transport, tools): R20
  • Profit: R30

Correct calculation:

(100 + 130 + 20 + 30) × 5
= 280 × 5
= R1,400

Wrong calculation:

130 + 100 × 5
= 630 ❌

👉 This mistake causes a loss of R770 on just one order.

📉 Long-Term Damage of Wrong Costing

If this mistake happens repeatedly:

  • Your stock money disappears
  • You cannot replace materials
  • You cannot pay yourself
  • You rely on grants instead of income
  • You feel “busy” but remain broke

📈 Benefits of Correct Costing

When you calculate correctly:

  • You price with confidence 💪
  • You negotiate without fear
  • You accept bulk orders safely
  • You can plan growth
  • Your business becomes fundable and bankable

🧠 Golden Rules for Handcraft Pricing

🔹 Always cost per item first
🔹 Use brackets on calculators
🔹 Never guess prices
🔹 Pay yourself labour first
🔹 Profit is NOT a luxury — it’s a necessity

✨ Final Advice for Crafters & Trainers

Your hands create value.
Your time has a cost.
Your business must sustain you.

A small calculator mistake can destroy a beautiful business —
but correct costing builds a legacy 🧵✨


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