How to Price Your Handmade Bags (Without Underselling Yourself)

How to price handmade bags materials time costs formula bag making Australia

A simple way to price your handmade bags so you cover your costs and pay yourself properly.

If you’ve ever made a bag and had someone ask, “How much would you charge for that?”, you’ll know how quickly that question can stop you in your tracks.

It’s one of the most common questions bag makers ask, and for good reason. Pricing handmade items can feel confusing, especially when you’re trying to balance covering your costs while still making a sale.

The good news is, it doesn’t have to be complicated.

A Simple Way to Price Your Handmade Bags

A great place to start is with a simple formula:

Materials + Time + Costs = Your Base Price

This gives you a clear, practical starting point that ensures you’re not losing money on the bags you make.

1. Cost of Materials

Start by adding up everything that goes into your bag.

This includes your main materials like vinyl faux leather or fabric, but also the smaller items that are easy to overlook, such as:

Sewing Thread
Zipper tape and zipper pulls
Hardware (D rings, swivel clips, strap connectors)
Interfacing or bag foam

Even though some of these might seem small on their own, they all add up and should be included in your total.

2. Your Time Matters

Next, think about how long it actually took you to make the bag.

This isn’t just the time spent sewing. It also includes:

Cutting your materials
Preparing and interfacing pieces
Assembly and finishing

Once you have your total time, multiply it by an hourly rate that feels right to you.

If you’re unsure what to charge per hour, a simple way to start is to think about what you would earn in a regular job. That gives you a realistic baseline.

3. The Costs Most People Forget

This is the part that many people miss.

If you’re selling your bags, there are additional costs involved that go beyond just materials and time.

Things like:

Your sewing machine and tools
Wear and tear on equipment
Electricity
Packaging
Your time spent on things like photographing, listing or selling your bags

You don’t need to calculate every cent perfectly, especially when you’re starting out, but it’s important to be aware that these costs exist and factor them in over time.

Why You Shouldn’t Copy Other People’s Prices

It can be tempting to look at what others are charging and base your price on that, but this often leads to problems.

Every maker is different. Some are sewing as a hobby and are happy to charge less, while others are running a business and pricing accordingly.

Their costs, skill level and goals may be completely different to yours.

Instead of trying to match someone else’s pricing, focus on making sure your own costs are covered and your time is valued.

A Simple Example

Let’s say you made a bag and your costs looked like this:

Materials: $25
Time: 2 hours at $25 per hour = $50

That gives you a base price of $75.

From there, you can adjust slightly depending on your market, but starting with a solid base ensures you’re not undercharging.

The Reality of Handmade Pricing

Handmade items are often underpriced.

It’s very easy to charge less because you’re worried about whether someone will buy, but if you don’t cover your costs and pay yourself properly, it quickly becomes unsustainable.

If you’re selling your bags, even in a small way, your pricing needs to support you so you can keep creating.

Choosing the Right Materials Matters Too

The quality of your materials plays a big role in both the finish of your bag and how you price it.

At Chris Lucas Designs, we stock a wide range of bag making supplies including vinyl faux leather, bag hardware, interfacing and threads, all carefully selected for bag makers.

Using quality materials not only improves your finished result, it also helps you confidently price your work knowing your bag is built to last.