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Materials Costing Done Right

Getting material costs right is the foundation of maker pricing. Here is how to do it.

Materials Costing Done Right
Photo: Unknown via Openverse (CC0)

Cost per item, not per pack

Materials are usually bought in bulk but used per item. The number you need is the cost of the materials that go into one product, which means breaking a pack price down to a per unit cost.

Include everything that goes in

Accurate costing counts every material in a finished piece, including the small ones: thread, glue, findings, finishes. The little items are easy to ignore and add up across many products.

Account for waste

Making often produces offcuts and mistakes. A realistic material cost accounts for the waste, so you are not surprised when a pack yields fewer sellable items than the raw quantity suggested.

Reuse your numbers

Once you have worked out the cost of a material, save it and reuse it across every product that uses it. A material library turns costing from a repeated chore into a quick, consistent calculation.

Key takeaways
  • Cost materials per item, not per pack
  • Include every material, even small ones
  • Account for waste and offcuts
  • Save material costs and reuse them
Julien Jimenez
Written by

Julien Jimenez

Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.

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