Pricing your handmade bag isn’t rocket science, but it also isn’t straightforward. The time that goes into cutting, sewing, and finishing a bag almost never gets to be reflected it the final price. For example, when I make my Islander Travel Tote, cutting takes 2–3 hours, and sewing takes another 7–8 hours of focused time. That’s a full day of work!

START WITH MATERIALS

 

The most obvious starting point is the cost of materials—fabric, interfacing, webbing, hardware, zippers and pulls. Also include any fees for selling that are directly related to that one bag. Fabric math can get tricky, which is why I made a fabric calculator which is free to use and online. Bookmark it to come back and use it as much as you need!

is a fantastic site for costs. It is probably the single best resource I have ever found for makers. They have a full-function free plan. Once you set up an account, you enter your purchases (fabric, hardware, thread, webbing etc) and can build a bag. And the very best part is it helps you keep tabs on what supplies you have on hand, where bought it, and what you paid. 

If you’re not ready for a full system, Simply Classic offers a great free worksheet (with a video tutorial!) to help calculate handbag costs: How to Price Handbags Worksheet

 

POINTERS ON MATERIALS COSTS

Hardware and things like webbing are straightforward costs to figure out. Fabric and thread need a bit more thought. 

Fabric waste needs to be included in figuring costs as it is no longer usable to you because of your project. In industry terms it is called fabric yield loss or wastage. If you are unsure, use the amount listed on your pattern.

Thread may not be the biggest expense, but it still matters as it is a direct cost. A quick way to estimate is to multiply your total seam length (measure with a tailor's measure tape - roughly is fine) by 9 to see how many yards of thread you will use. (remember there is a top thread and a bobbin we need to account for). From there, divide the price of your spool by its total yards to see the cost per yard. Once you have figured our the cost you can use it over and over for that pattern. Remember to measure for the interior too!

Example: Spool of thread cost $15 and is 3,000 yards 

15/3000 = $.005 per yard.
$.005 x (5 yards of seam x 9) = $0.23 per bag

Patterns, like tools, should not be factored into the per-bag cost. A pattern is more like an indirect cost: once you’ve bought it, you can use it again and again, so it pays for itself over time.

 

PRICING METHODS

THE QUICK & DIRTY PRICING TRICK

Once you’ve added up your materials, your price needs to be at least more than that. A simple method is doubling or tripling your material costs. It’s not perfect, but it’s quick and gets you in the ballpark. 

 

40% METHOD

It's customary in the retail world to have a minimum profit margin of 40%  in order to make enough to cover the cost of doing business.  A 40% profit margin means that for every dollar you bring in from a sale, forty cents is actual profit after covering the cost of making the bag. Multiple your cost by 1.67. This formula always gives you the cost plus roughly 40%.

Cost of materials x 1.67 = Selling Price
                                 or
Example: $60 x 1.67 = $100.20 (round to $100)

Meaning that if a bag costs $60 to make and you want a 40% profit margin, the selling price needs to be $100. 

You can also do 50% - multiple by 2 or even 60% - multiply by 2.5

 

THE MONTHLY GOAL FORMULA

Another method is to base pricing on your income goals. Let’s say you want to shoot for earning $3,000 a month and plan to work 22 days. That means your bags need to bring in about $136 each day. If your bag takes you a full day to make, that becomes your baseline price. Don't anticipate selling one bag per day when you are starting out though! You can then figure an hourly wage by taking the cost method above and dividing by the amount of hours that it took to make it. Example: $136 / 8 hours = $17 per hour. 

 

OTHER THINGS TO THINK ABOUT

 

THAT TRICKY 'TOO MUCH' POINT

I spent about a year tweaking the price of one of my bags and learned something important: there’s a threshold customers don’t seem to cross when buying from handmade or “not-famous” brands. Too low, and buyers think the bag must not be good quality. Too high (over about $200–$250, depending on the bag), and they simply didn't buy. There are always exceptions to the rules but I have yet to come across them myself.

CONSIDER YOUR SKILL LEVEL

If you’re reading this, chances are you’re still figuring things out — not just pricing, but also your sewing skills. And that’s totally normal. Everyone starts somewhere.

When you’re just getting into bag-making, it’s important to recognize that your early bags may not be ready for premium pricing. Why? Because they haven’t been field-tested yet. A bag might look great on the sewing table, but it’s real-world use — being stuffed, carried, and tossed around — that reveals whether your stitching holds up and if your material choices were the right ones.

As your skills improve and you get feedback from real customers (or even just friends and family who carry your bags every day), your confidence in both craftsmanship and durability will grow. That’s when you can start nudging your prices higher to reflect the quality you’re delivering.

Think of it this way: your price tag should grow with your skill set. Don’t undersell yourself forever, but also don’t rush to price like a seasoned pro before you’ve had the chance to prove your bags can stand the test of time.

CONFIDENCE IN YOUR PRICE MATTERS

One thing we don’t talk about enough when it comes to pricing is the human condition. If you feel deep down that your price is “too high,” that doubt is going to come across to your buyer — especially in face-to-face settings like craft fairs or markets. People pick up on your energy more than you realize.

If someone asks you the price and you hesitate or start explaining why it's priced that way or worse, immediately follow with, “but I can do a discount,” you’re signaling that you don’t fully believe your work is worth it. And if you don’t believe in it, your customer won’t either.

THE QUIET CONFIDENCE TRICK

More of a selling technique, but worth mentioning here. When someone asks the price of your bag, smile and simply tell them the price. Then stop. Silence here is golden. In sales, it’s often said that the next person who speaks is the one making the purchase—and there’s truth in that.

There’s no need to fake confidence or explain away your price. If they’re asking, it usually means they already like your work. If they choose not to buy, it’s not necessarily about the price—it may just be timing, priorities, or their wallet. 

4 TYPES OF BUYERS

It also helps to understand who’s buying. In my experience there are the four types of buyers (of course there are always exceptions, but that's not what we are after here):

1. The Budget Buyer
Price is everything to this group. The cheaper, the better. Function matters a small bit, style hardly at all. They usually buy cheap, mass-produced imports. These people are not your customers, and that’s okay! They are also the people who will tell you your prices are too high. Their spending range is FREE–$25

2. The Everyday Collector
These are your people! They love handbags, appreciate unique designs, and like being able to say, “My friend made this” or "I found this fabulous maker!" They will splurge a little, but are usually not willing (or able) to spend thousands on a bag. Their spending range is about $50–$250.

3. The Mid-Luxury Crowd
They love name brands like Louis Vuitton, Celine or Prada. For them, it’s about the label, not the craftsmanship. Unless you’ve built a huge following, they are usually not your buyers. Their spending range is about $500–$3,000.

4. The Luxury Elite
These are the Hermes Birkin buyers. They live in a world of $30,000 handbags and exclusive labels you and I may never have heard of. Their wallets are bottomless, but they are usually not looking for handmade bags from small shops. Their spending range can be $10,000 and up.

FINDING YOUR SWEET SPOT

At the end of the day, pricing your handbags isn’t about a perfect formula — it’s a mix of math, market, and mindset. Start with your costs, be honest about your skill level, and keep your ideal customer in mind. You can't even use the same formula for different bags you make. It's best to go with what feels right. With time (and plenty of practice), you’ll find that sweet spot where your bags are valued for the time, care, and creativity you put into them.

Have you grabbed your copy Jax's & Lo's free pattern?