How to price handmade pottery sustainably
Pricing handmade pottery too low is one of the most common reasons studio potteries fail. Many potters only account for raw clay and glaze cost, forgetting studio labor, kiln electricity, trimming time, and wholesale markdowns.
Total Production Cost = Direct Materials + Kiln Allocation + (Hours Spent × Labor Rate)
Understanding profit margin vs mark-up
A 50% profit margin means that 50% of the final selling price is profit over cost:
Retail Price = Total Production Cost ÷ (1 − Desired Margin %)
If your piece costs $10 to make and you want a 50% profit margin, the retail price is $10 ÷ 0.50 = $20.00 (giving $10 profit).
Wholesale pricing rules
Standard craft retail galleries expect a 50% wholesale discount off retail price. If your retail price is $20, your wholesale price is $10. Your wholesale price MUST cover your total production cost to avoid selling at a loss when supplying galleries.