One of my hobbies which I have turned into a sell-able craft is my pen making. Pens are made using a mini lathe to turn a block of wood or plastic to shape to hold the pen workings, which I buy as a kit. I will use this as an example of my costing process. Pen Kits can vary from $2.95 a kit to 59.95 a kit depending on what kind of pen you want to make. The pictures below are of cigar pens. The cost for this kit is $ 5.95. The wood blank will cost from $1.00 to 6.95 depending on type of wood or plastic. I will use $ 3.00 in this example. The pen kit is $5.95 plus $3.00 for the pen blank will total materials of $8.95. It will take me 1/2 hour to make this pen at $15.00 per hour labor. Now my labor and material total $16.45. I them add overhead and profit. I figure my overhead and profit to be the same as material and labor which is $16.45. This give me a total selling price of $32.90. I i always throw in a case and sell them for $34.95. I have pens which sell for more and I have pens which sell for less.
Please visit my website for more woodworking and craft information
http://nokeswoodworks.com
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