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POURMARGIN JOURNAL

Handmade labor cost: price your time consistently

Convert making time into a useful cost input without double counting.

PourMargin editorial · 14 October 2026 · Illustrative worked examples

Illustrated handmade labor cost — price your time consistently

Start with the decision

Time is easy to overlook when materials are neatly itemized. Decide whether your labor input represents making, packing or both. Keep any additional event or order labor separate unless it has already been included.

Worked calculation

At an illustrative hourly value of 18, ten minutes per candle is 3 of labor. If an efficient batch takes 60 minutes for 20 accepted candles, the allocation is 0.90 each. Include setup and accepted yield where appropriate.

Convert batch time into labor per accepted unit

For a product plan, total cost is the sum of distinct materials, packaging and labor inputs. Add bundle or event costs only when they are incremental; avoid adding any component twice.

Time the whole repeatable process across a normal batch: setup, making, cleanup and quality checks. Divide by accepted units, not the number poured if some pieces are routinely unusable. Keep unusual product development or photography separate from repeat production labor unless you deliberately allocate those costs across the product line.

Check the changed-cost scenario

Choose a planning hourly value and review it against actual hours; this is a business assumption, not a wage recommendation. If the owner’s labor is already included in a product cost, do not add it a second time to an event budget. Clear labels make it possible to compare a faster process without pretending the labor disappeared.

Convert batch time into labor per accepted unit — illustrative planning values
Input or resultValue
Hourly planning value18
10 minutes per candle3 per candle
60-minute batch / 20 accepted units0.90 per unit
60-minute batch / 15 accepted units1.20 per unit

Record setup, cleanup and rejected output when they belong to repeat production. Do not mix customer-support or development time into making labor without labelling the allocation. The hourly figure is your assumption, not a wage recommendation.

Use the example with your own inputs

The tool does not tell you the right wage or account for employment taxes. Use your own planning convention and compare actual batch time with the assumption.

Calculate candle cost and contribution

Scope and source checks

These are planning examples, not actual seller results. Keep currency, tax basis and cost allocation consistent. Enter your own figures and reconcile with your records; tax, demand, refunds and unlisted business costs can change the outcome.

See more pricing examples and assumptions.

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