Mug Price Calculator: How To Price Your Handmade Mugs?
How to Calculate The Price For Your Sustainable Mug
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
- salary
- materials
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your sustainable mug brand.
Please input below:
Learn more about starting a sustainable mug brand:
Where to start?
-> How much does it cost to start a sustainable mug brand?
-> Pros and cons of a sustainable mug brand
Need inspiration?
-> Other sustainable mug brand success stories
-> Examples of established sustainable mug brand
-> Marketing ideas for a sustainable mug brand
-> Sustainable mug brand slogans
-> Sustainable mug brand names
Other resources
More Tips On Pricing Your Sustainable Mug
How To Price Your Sustainable Mug
One of the most challenging aspects to starting a sustainable mug brand is determining how much to charge for your sustainable mug .
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your sustainable mug , it's critical that you first identify all of your costs and consequently mark up your sustainable mug so you can factor in a profit.
The actual cost of your sustainable mug may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Rent
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your sustainable mug , you'll want to create goals for revenue + how much profit you want your sustainable mug brand to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your sustainable mug is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your sustainable mug fits best in the marketplace.
All of these factors play an equal part in pricing your sustainable mug , so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful sustainable mug brand:
. Alpengraphics ($7.8K/year)
Melanie Goel (from Munich, Bavaria, Germany) started Alpengraphics over 4 years ago.
Hi, my name is Melanie. I’m an outdoor soul from Germany (grew upright in the middle of the German Alps) and business owner of alpengraphics - a zero plastic startup for minimalistic & durable campfire mugs. The company was founded in April 2019 and makes approximately 500 - 3.000€ a month, depending on the season.
I’ve also worked with various Instagram influencers. It was (still is!) really touching that all of them were willing to support my business without getting paid. They believed in the product, in the vision, in the sustainable approach, and were willing to go out of their way to create beautiful content with nothing but a mug in return and a lot of them still do. I’m still super grateful to all of these incredible people.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
Get our 5-minute email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
"An amazing network of founders that truly want to help each other grow their business."