• 29 Nov, 2025

The Dilemma of Art vs. Commerce

In the bustling markets of South Asia, from the vibrant streets of Dhaka to the digital storefronts of Instagram, a quiet revolution is taking place. Creative minds are turning their passion for handicrafts, loom textiles, and organic beauty solutions into thriving businesses. However, one question haunts almost every artisan: "How much should I charge for this?"

Pricing is not just about numbers; it’s a psychological battle. In a culture deeply rooted in bargaining and where mass-produced Chinese goods often dictate price expectations, selling a handmade item for its true worth can feel daunting. You fear that if you price it too high, the "Bhaiya/Apu, kom hobe na?" (Brother/Sister, won't you lower the price?) crowd will walk away. But if you price it too low, you end up working for free, or worse, paying out of your pocket to run your business.

This guide is tailored for the Bangladeshi and Asian context to help you master the art of pricing without guilt or hesitation.

1. The Mindset Shift: You Are a Business, Not a Charity

The first step is mental. Many home-based entrepreneurs in Bangladesh treat their business as a hobby. They calculate the cost of beads or oil but forget the electricity, the rickshaw fare, and most importantly, their own time. You must realize that "Profit" is not a dirty word. It is the fuel that keeps your passion alive.

2. The Golden Pricing Formula

To ensure you never undercharge, ditch the guesswork. Use this standard formula widely accepted in the handmade industry:

• Cost Price (CP) = Material Cost + Labor Cost + Overheads

• Wholesale Price = CP + Profit Margin (20-30%)

• Retail Price = Wholesale Price x 2 (or x 1.5 for competitive markets)

Let’s break these down.

Step 1: Material Costs (The Tangibles)

This is straightforward but often underestimated. If you are making a Hand-Painted Panjabi or an Organic Face Serum, list every single ingredient.

• For Handicrafts: Fabric, colors, medium, brushes, threads, buttons, glue.

• For Beauty: Carrier oils, essential oils, herbs, preservatives, jars, droppers.

Pro Tip: Always add 10-20% to your material cost as "Wastage Cost." You might spill some oil or ruin a piece of fabric. This cost must be covered by the saleable items.

Step 2: Labor Costs (Paying Yourself)

This is where 90% of Asian entrepreneurs fail. They think their time is free. It is not.
Calculate an hourly wage for yourself based on your skill level. It shouldn't be the minimum wage; it should reflect your artistry.

Example:
If you want to earn BDT 30,000 a month working 150 hours, your hourly rate is BDT 200.
If a handmade bag takes 5 hours to make: Labor Cost = 5 x 200 = BDT 1000.
This BDT 1000 goes into the product cost, before you even add profit.

Step 3: Overheads (The Invisible Costs)

These are the silent killers of profit.

• Utilities: Electricity for machines/lights, gas for heating oils.

• Digital: Internet bills for managing your Facebook page.

• Logistics: Transport costs to procure raw materials.

• Depreciation: Wear and tear of your tools (sewing machine, blender).

• Transaction Fees: bKash/Nagad "Cash Out" charges or platform commissions (Daraz/Shopee).

A safe rule of thumb is to add 15% of your Material + Labor cost as overheads.

Step 4: Packaging and Experience

In the age of unboxing videos, packaging is part of the product. In Bangladesh, customers associate good packaging with authenticity.
Bubble wrap, aesthetic boxes, jute strings, thank-you cards, and branded stickers—all cost money. Add this to the unit cost. Do not pay for the box out of your profit margin.

3. Wholesale vs. Retail Pricing

Why multiply the price by 2 for retail?
Because you need room to grow.

• Wholesale Price: This covers your costs and gives you a small profit. This is the lowest you can ever go (e.g., for bulk orders).

• Retail Price: This includes the wholesale price PLUS the cost of marketing, running ads, stocking inventory, and handling returns.

If you sell a product at wholesale price to a retail customer, you have zero buffer. If they ask for a discount, you start losing money. The retail markup allows you to offer that "10% Eid Discount" without hurting your bottom line.

4. Real-Life Example: Pricing a Jar of Homemade Achar (Pickle)

Let’s calculate the price for a 500g jar of premium Mango Pickle.

1. Materials: Mangoes, mustard oil, spices, glass jar, label = BDT 150.

2. Labor: Cutting, drying, mixing (2 hours @ BDT 100/hr) = BDT 200.

3. Overheads: Gas, transport, mobile data (15%) = BDT 52.

4. Packaging: Box, bubble wrap = BDT 20.

Total Cost Price (CP): 150 + 200 + 52 + 20 = BDT 422.

Profit (25%): BDT 105.
Wholesale Price: 422 + 105 = BDT 527.

Retail Price (x 1.5): 527 x 1.5 = BDT 790.

You might think, "BDT 790 for Achar? Market price is 400!"
But mass-market Achar uses cheap chemicals and machines. Yours is handmade, sun-dried, and premium. You are not competing with Pran or Radhuni; you are selling a gourmet experience.

5. Handling the "Too Expensive" Objection

In Asian markets, bargaining is a sport.

• Scenario: A customer says, "Other pages are selling this for BDT 500, why is yours 800?"

• Response: Do not get defensive. Educate them. "Madam, we use cold-pressed oil and no artificial preservatives. This is a handcrafted batch, ensuring the highest hygiene and quality that mass production cannot offer."

Confidence sells. If you believe your price is fair, the right customer will pay it.

6. The "Friend & Family" Trap

Be firm with relatives. "I would love to gift this to you, but this is my livelihood. I can offer you a 10% 'Family Discount', but I cannot waive the cost." If they truly support you, they will pay.

Conclusion: Value Your Craft

Pricing is a journey of self-respect. When you undercharge, you not only hurt your own finance but also devalue the entire handicraft industry in Bangladesh. By setting the right price, you ensure that you can continue creating beautiful things for years to come.

Start with the formula, adjust for the market, and stand your ground. Your art is worth it.