Step 1: Know Your Costs
Before you price anything, you need to understand what it’s costing you to make each item. That includes:
Materials:
- Vinyl used (calculate by the centimetre or sheet)
- Blank product (mug,tumbler etc.)
- Transfer tape
- Packaging (box, tissue, sticker, thank-you card)
Equipment Use:
- Cutting machine electricity
- Blades, mats, tools wear-and-tear (add a small buffer)
Extras:
- Courier/delivery cost (if you include delivery)
- Transaction fees from payment gateways (Yoco, PayFast, etc.)
What About Your Time?
Here’s the honest truth:
You won’t always be able to charge fully for your time on every item.
Example:
- Standard mugs in South Africa sell between R70–R120, depending on design and packaging.
- If you try to add your hourly rate into a single mug price, you’ll quickly price yourself out of the market.
So what should you do?
Focus on covering your material costs and still making a healthy profit on small, common items.
Only factor in your time fully when you’re working on:
- Higher-margin items like tumblers, luxury hampers, baby milestone gift sets, or corporate bundles.
- Custom or complicated projects that involve more design time, packaging, and extra touches.
Example:
- A custom milestone set (baby grow + blanket + milestone cards) sells for R500–R800+.
- Here, you can realistically charge for materials and your time because customers expect to pay a premium for the full experience.
Quick Tip:
You can also build in a “time buffer” across your whole pricing structure instead of per item.
- Example: If you know you spend about 5 hours a week on orders, make sure your overall weekly sales cover your material costs, plus some profit for your time — without stressing over every mug.
Example: Personalised Mug
| Item | Cost |
| Mug blank | R35 |
| Adhesive vinyl used | R10 |
| Transfer tape (portion) | R5 |
| Box, tissue, sticker | R6 |
| Total cost | R56 |
Realistic selling price: R90–R120
(Depending on how nicely it’s boxed and the design complexity.)
Time is not fully charged here — you build profit through volume and efficiency.
Understand the Value You Bring
You’re not just selling a mug or a shirt. You’re selling:
- A custom experience
- A gift with meaning
- Something made with care
Your time still matters — but be smart about where and how you charge for it.
Action Steps:
- Identify your basic products (where you focus on speed and volume).
- Identify your premium products (where you charge properly for time and special touches).
- Set two different pricing mindsets for each category.
The Missing Piece: Protecting Your Profit as You Grow
Many small businesses price correctly…
Then slowly lose profit without noticing.
Here’s why:
– Supplier prices increase
– Packaging costs rise
– Fuel and courier fees go up
– Your time becomes more valuable
– Demand increases
But prices stay the same.
That’s how burnout starts.
Review Your Prices Every 3–6 Months
Make it a habit to review:
✔ Blank costs
✔ Vinyl prices
✔ Packaging suppliers
✔ Courier fees
✔ Platform fees
If your costs rise, your prices must rise too.
Small increases (R5–R10 per item) are usually accepted when your quality and service are strong.
Build a “Buffer Fund” Into Your Business
Aim to set aside a small percentage of profit (5–10%) for:
✔ Machine repairs
✔ Blade replacements
✔ Emergency supplies
✔ Upgrades
✔ Bulk buying opportunities
This keeps your business stable during tough months.
Avoid the “Discount Trap”
Discounting too often trains customers to wait for sales.
Instead of lowering prices, offer:
✔ Bundles
✔ Free upgrades
✔ Loyalty rewards
✔ Seasonal specials
Protect your brand value.
Know Your “Minimum Yes Price”
Every product should have a line you don’t cross.
Ask yourself:
“What is the lowest price I can charge and still feel respected and profitable?”
If a client pushes below that, the answer is politely no.
Saying no protects your energy and your reputation.
Pricing for Scale (Thinking Like a Business Owner)
Ask yourself regularly:
– Can I make this faster?
– Can I buy this cheaper in bulk?
– Can I package this more efficiently?
– Can I upsell something with it?
Efficiency = higher profit without raising prices.
Open a Business Account & Separate Your Money
One of the smartest moves you can make early on is opening a separate business bank account.
You don’t need anything fancy.
There are free or low-cost options available that are perfect for small businesses.
Why This Matters
✔ It gives your business credibility
✔ It makes you look more professional to customers and suppliers
✔ It simplifies your bookkeeping
✔ It helps you track real profit
✔ It makes tax season much easier
When your business expenses run through a business account, you can clearly see what you’re spending and earning — and this can help reduce your tax burden when done correctly.
Separate Business Money From Personal Money
As soon as possible:
✔ Open a dedicated business account
✔ Run all income and expenses through it
✔ Track your sales and costs consistently
✔ Pay yourself intentionally (weekly or monthly)
This allows you to see:
Am I profitable?
Or am I just busy?
There is a big difference.
Paying Yourself (Yes, Even in the Beginning)
You don’t have to pay yourself a full salary immediately.
But you should build the habit early.
Start with:
– A small weekly amount
– Or a monthly transfer
– Or a percentage of profit
This reminds you that:
Your business exists to support your life — not consume it.
Pro Tip: Simple Tracking System
You can start with:
✔ A spreadsheet
✔ A notebook
✔ A basic accounting app
Track:
– Income
– Expenses
– Profit
– Savings
Clarity creates confidence
Final Action Step: Your Pricing Power Plan
✔ List your 5 best-selling products
✔ Calculate the true cost for each
✔ Set minimum prices
✔ Schedule price review dates
✔ Create one bundle offer
Pricing is not about being “cheap.”
It’s about being sustainable.
A tired, broke business owner cannot serve well.
A profitable one can grow.
Bonus Section: Running the money side of your business
Making beautiful products is the fun part. Knowing whether your business is actually profitable is the part most crafters avoid — until they look up one day and realise they’ve been busy but not making money. This lesson changes that.
You don’t need an accountant, a fancy system, or a business degree. You need a simple habit and the right template. That’s it.
💡 The mindset shift first
From the moment you take your first paid order, you are running a business — not a hobby. That means money coming in needs to be tracked separately from money going out, and the difference between the two is what tells you whether you’re actually growing.
Most small business owners who fail don’t fail because they couldn’t make or sell. They fail because they didn’t know their numbers until it was too late. You’re not going to be one of them.
📊 The three numbers that matter
1. Revenue
Every rand that comes in from a sale. Not profit — just the total amount customers pay you.
2. Cost of Goods (COG)
Everything you spent to make that specific product — blank, vinyl or HTV, packaging, and any delivery cost you absorbed. This should already be familiar from the pricing lesson.
3. Profit
Revenue minus COG. This is what you actually made. Not what you invoiced — what you kept after the materials were paid for.
Example: You sell a personalised tumbler for R150. The blank cost R45, the vinyl R12, and the packaging R8. Your COG is R65. Your profit on that one sale is R85 — a 57% margin. That’s a healthy product. If your margin drops below 40% consistently, your pricing needs adjusting.
📋 What to track every month
| Category | What to record | Examples |
|---|---|---|
| Sales income | Every paid order | Tumbler R150, gift set R320 |
| Material costs | Vinyl, HTV, blanks, packaging | Vinyl roll R120, 10 tumblers R450 |
| Equipment costs | Machine, press, accessories | Cricut mat R95 (once-off) |
| Business costs | Course fees, software, marketing | Canva Pro R199/month |
| Delivery costs | Postage, courier, packaging | Postnet parcel R85 |
📅 Your monthly check-in (10 minutes)
On the last day of every month, spend 10 minutes answering these four questions:
- How much did I earn this month? (total sales)
- How much did I spend? (total costs)
- What was my profit? (earnings minus costs)
- Which product made me the most profit? (make more of that one)
That’s it. Four questions, ten minutes, once a month. This single habit will keep your business healthy and your pricing honest.
🇿🇦 South African tax basics for small sellers
This is general awareness — not legal or tax advice. For your specific situation, speak to an accountant.
- Under R1 million annual turnover — you are not required to register for VAT. Most side hustles operate comfortably below this for years.
- You still pay income tax on profit from your business, even as a sole proprietor. Keep records from day one — it makes tax season significantly less painful.
- SARS requires you to declare all income — including side hustle income. The tax-free threshold for individuals is currently R95,750 per year (2025). If your total income including your side hustle stays below this, you won’t owe tax.
- Keep all receipts — material costs, equipment, software subscriptions, and even a portion of your home data costs can be legitimate business deductions.
⚠️ The one thing most crafters miss: If you’re buying blanks and materials regularly, keep every invoice and proof of payment. These reduce your taxable income — but only if you have the paperwork.
📥 Your financial tracking spreadsheet
A ready-to-use Google Sheets tracker is included with this lesson. It has three tabs:
- Sales log — record every order as it comes in
- Expense log — record every purchase
- Monthly summary — automatically calculates your revenue, costs, and profit
Make a copy, rename it with your business name, and start filling it in from your very first order.
🎯 Your action task
- Download and open the tracking spreadsheet. Make a copy for yourself.
- Enter your last 3 purchases — vinyl, blanks, packaging, anything. Get into the habit of recording as you spend.
- Calculate your profit margin on your top product using the formula: (Selling price − COG) ÷ Selling price × 100. If it’s below 40%, revisit your pricing before taking more orders.
You don’t need to be a numbers person. You just need to know your numbers. There’s a big difference.