Guides
The numbers behind a small shop.
Plain-English guides for makers and small manufacturers: costing, pricing, inventory and the books. Written from real batches, with sources.
Costing & pricing · 12-minute read
How to calculate cost per unit for small-batch products
The seven-step method — materials, freight-in, packaging, labor, batch loss and overhead — with a real candle batch costed out.
Read the guideAccounting guide · 9-minute read
How to Calculate Cost of Goods Sold for a Small Manufacturer or Maker
Cost of goods sold (COGS) is what the products you sold during a period cost you to make. It drives your gross profit, and for most small manufacturers it’s the biggest number on the tax return after sales. Here’s how to work it out — the way the IRS lays it out, and the way your shop actually runs.
Read the guidePricing guide · 8-minute read
How to Price Handmade Products: Cost, Margin, Wholesale and Retail
Most makers price by looking at what others charge and hoping it covers costs. Start from the other end: know your true cost per unit, choose the margin your sales channel needs, then check the result against your market.
Read the guideProduction guide · 7-minute read
Bill of Materials for Small Manufacturers: What It Is and How to Build One
A bill of materials — makers often just call it a recipe — lists everything that goes into one batch of a product, and how much. Get it right and costing, purchasing and production all fall into place.
Read the guideFree cost per unit calculator
Put the guide’s method to work on your own batch — and see the price your margin needs.
Open the calculatorStop rebuilding your costs in a spreadsheet.
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