How to Price Homemade and Resale Products (With Example)

Step by step

1. List every costWrite down raw material or purchase price, packaging, gas and electricity, travel, wastage and tools for one unit.
2. Value your timeDecide a fair hourly value for your work and add the time one unit takes.
3. Add a marginAdd a margin on top of the full cost that makes the work worth it for you.
4. Check the marketCompare prices of similar sellers for the same quantity and quality, online and offline.
5. Set offers and bundlesCreate honest offer prices or combos that still cover the full cost of every item.
6. Decide delivery chargesChoose a simple delivery rule by area or order value and state it before the buyer confirms.
7. Review regularlyRevisit prices every few months and tell regular customers in advance if costs rise.

Know your full cost first

Write down every cost that goes into one unit of your product, not just the obvious ones.

• Raw material or the price you paid the supplier.
• Packaging: jars, boxes, labels, tape, bags.
• Gas, electricity and small tools that wear out.
• Your time. Decide a fair hourly value for your work.
• Travel to buy stock and any wastage or breakage.

Use cost-plus pricing

Cost-plus means you add a margin on top of your full cost. Many small sellers choose a margin they are comfortable with after checking the market. Homemade items that take a lot of time usually need a higher margin than simple resale items.

Example only: you make a 500 g jar of mango pickle. Ingredients cost ₹120, the jar and label ₹30, gas and electricity about ₹10, and your time for one jar you value at ₹40. Your full cost is ₹200. If you add a 40% margin, the selling price is ₹280. You might round this to ₹279 or ₹280.

Example only for resale: you buy a kurti for ₹450 from a wholesale market, spend ₹20 on a bag and ₹30 per piece on travel. Full cost is ₹500. A selling price of ₹699 to ₹799 leaves room for your effort and the occasional discount.

Check what others charge

Look at similar sellers on Instagram, WhatsApp groups, local shops and online marketplaces. Compare like with like: same quantity, quality and type.

You do not need to be the cheapest. If your product is fresher, handmade or better packed, you can charge more. Explain why in your description. Being the cheapest often leaves no money to grow.

Also notice what buyers say. If many people ask for the price and then go quiet, your price may be too high for that audience, or your photos and description may not explain the value. If you sell out every batch within hours, you may be priced too low.

MRP vs offer price

Some sellers show an MRP and a lower offer price with a percent off. This can attract buyers, but only if it is honest. The MRP should be a real price you sell at normally, not an inflated number.

For packaged goods, Indian rules on MRP and labelling apply. If you sell packaged products, check the current legal metrology rules for your category. Never sell above the printed MRP.

Bundles and combos

Bundles help you sell more per order. For example, a pickle combo of three small jars, a saree with matching blouse piece, or a gift box of cookies and candles.

Price the bundle slightly lower than buying items separately so the buyer feels the saving, but make sure it still covers the full cost of each item and the packaging.

Delivery charges

Decide whether delivery is included in the price or charged separately. Many home sellers charge a fixed fee by area, offer free pickup, or give free delivery above a certain order value.

Always tell the buyer the delivery charge before they confirm, and write the final total in the chat. Surprises at the end cause cancelled orders.

Review your prices every few months. If raw material costs go up, it is fair to adjust your price. Tell regular customers in advance.