How to Price Arts & Crafts Kits to Make a Profit

Do you relate to any of these?

A: You want to sell arts & crafts kits, but you don’t know what to charge

B: You’re selling kits, but you’ve priced them too low and you’re not making a profit

C: You’ve priced your kits to make a profit, BUT they are not selling…

If you answered YES to any of these, we want you to know that it doesn’t have to be this way.

Pricing your kits just right ... could mean the difference between success and failure.

 Today we’re sharing our top tips to price your kits PLUS we're sharing a simple Google sheet to help you calculate the costs of your kit and determine your profit. 

Let’s dive in!

Let chat about the cost of your kits and how to price them for profit. 

The pricing of your kits will depend on a bunch of things:

What type of kit you’re selling, the cost of your packaging, what supplies you put inside your kits, and how you are getting them to your customers, to name just a few.

Photo: CCC Member Bella

It’s important to remember that how you price your kits will be different to how you price your classes, parties, events etc. because your costs might be higher and there are also other costs involved such as packaging and perhaps shipping.

If you need help with pricing your classes, we’ve got another blog that you should check out. Click here to open that blog in another tab.

Ok, so when it comes to pricing your kits, as with anything in your business, you want to make sure you’re always making a profit.

We’ve created a simple Google sheet that you can purchase to calculate the costs of your kit and determine your profit.

Photos: Christelle & Stefanie; CCC Member Katie

 Before we look at the calculator, let’s talk about some key pricing principles: 

Setting your price and getting to the correct price is a very important part of your kit journey.

⬇️ Because if you price too low, you run the risk of low-profit margins (little profit) and low perceived value.

⬆️ If you price too high, you run the risk of being overpriced and not selling. 

When setting your price, profit margin plays a big role and can help you determine the right price for your kits.

The profit margin is the percentage of income that's left after all expenses have been deducted.

It will automatically get calculated in the profit calculator so don't stress about that. It's just important to note that you want to keep an eye on your profit margin.

You might start at a lower profit margin at the beginning, thus having a lower profit per kit initially.

But once you start to scale, your margin will go up as you will be able to start buying in bulk and negotiate your prices.

As costs go down, your profits will go up.

Your aim should be 50-70% and even up to a 100% profit eventually.

Photos: CCC Members Lindsay & Jenna

 Now let’s have a look at the kit budget Google sheet: 

Click the image below to purchase the How to Price Your Arts & Crafts Kits Calculator, then continue reading (or watch the video) to find out how to use it.

How much do you want to charge your customers for your kit? 

• Insert the price in the yellow cell.
• If you’re unsure you can always do some research of how much others in the industry are charging for a similar product. You don’t want to be priced the lowest or the highest in the industry, so consider the industry average.
• Think practically: look at the price of your kit and think if you'd be willing to pay that price.

Processing fee: If you are selling your kits online, you are probably using a payment processor such as PayPal or Stripe. If you do, have a look at what their processing fee is (this will be a % that they collect per sale) and insert the % in the yellow cell. If you don’t use a payment processor, leave that cell blank.

Labour costs: We as one-woman business owners and entrepreneurs so often don't include the costs of our own work. But at some point, this job will be hired out and you want to make sure you've captured the cost in the beginning. If you are unsure how much to add for labour and want to keep things simple for now, you can leave the cell blank.

Sales tax: when it comes to sales tax you can either add it into your total costs, so you get that nice round price, or you can add it on to the purchase price each month. If you decide to include it in the cost of your kit, add the amount per kit in the yellow cell. You can check the requirements with your accountant or the Small Business Association in your state or country.

Shipping costs: You can decide whether you want to include or exclude shipping costs from your selling price. If you’ll be delivering your kits in person or have your customers collect them, you simply leave that cell blank. 

Next up, insert the costs of putting one kit together.

Now that you’ve added in all the values, you will see your total costs per kit as well as your profit/loss and profit margin %.

Remember, when it comes to profit margin, our recommendation would be to never go below 30% profit margin. Your aim should be 50-70% profit eventually.

To calculate your TOTAL profit for the month/order, insert the number of kits sold. Once you insert that number you will see your total income, costs and profit.

And there you have it! Easy peasy!

Bonus tip: If you’d like to keep record of the costs of all your kits, you can duplicate the tabs (click on tab > duplicate) and even name the tabs by e.g. month.

Photos: CCC Members Stacy & Lauren

Don’t forget to check each and every one of your kits on this model before you sell them, because what can happen is that you get excited and you want to add more stuff to your kit and over deliver, but you can quickly get to a point where you aren’t making much money (or even losing money)!

So use the calculator and stick to your profit target!

Download the costing sheet to see how much you should charge for your kit and what your profit will be.

⭐⭐ P.S. Now that you know how much to charge for your kits, are you ready to kickstart your creative kit journey? Click to check out our Mini Kit Course and launch your arts & crafts kit in just 4 days!