How to price leatherwork: materials, hours and margin
A common starting formula for handmade leather goods is (materials + labour) × 2 = wholesale, and wholesale × 2 = retail [1]. In practice, three things go wrong more often than the formula: makers underestimate how much leather a piece really uses, forget the hours that aren't stitching (design, edges, photos, messages), and forget the platform fee. Get those three right and the formula works.
The formula
Weaver Leather Supply's pricing guide, by leatherworker Mary Savel, uses this [1]:
- Wholesale = (material cost + labour cost) × 2
- Retail = wholesale × 2
Their worked example: $9 of materials plus 30 minutes at $20 an hour ($10 of labour) gives a wholesale price of $38 and a retail price of $76 [1]. The guide says the result isn't carved in stone. A maker whose whole business is high-end (product, service, website and branding) might use a bigger multiplier, while a mid-range maker will probably stay close to the formula [1].
The doubling steps are your margin. They pay for overheads (tools, rent, software, samples, mistakes), for the shop or gallery's share when you sell wholesale, and for profit.
Step 1: cost the leather properly
Leather is bought by the hide or side and sold by area, so cost per square foot (or per square metre) is the number you need.
For example, Tandy Leather lists its Montana Veg-Tan Side at $159.99 for an average of 15 to 18 sq ft, 4 to 6 oz (1.6 to 2.4 mm) thick [2]. That works out to roughly $8.90 to $10.70 per sq ft. Prices vary a lot by tannery, grade and country, so use your own invoices.
Then allow for waste. You can't use every inch of a hide: there are scars, belly stretch, offcuts between pattern pieces, and the odd mis-cut. Track it on a few real projects. If your wallet pattern covers 1 sq ft but you use 1.4 sq ft of the hide per wallet, cost 1.4.
Add the rest of the materials:
- Thread, needles and wax
- Edge paint or burnishing compound, dye and finish
- Hardware: snaps, rivets, buckles, D-rings, zips
- Lining, interfacing, glue
- Packaging and inserts
Step 2: count all the hours
Time everything for one piece, or for a batch divided by the number of pieces:
- Design and pattern (spread over the batch if you'll reuse it)
- Cutting, either by hand or setting up and running a laser
- Skiving, gluing and punching stitch holes
- Stitching by hand or on a leather sewing machine
- Edge work: bevelling, sanding, burnishing or painting
- Dyeing, finishing and hardware
- Photos, listing, messages, packing and the post office trip
For reference, one US wallet maker says hand stitching alone takes 30–45 minutes per wallet [3]. The other steps add up quickly around that.
Then pick an hourly rate you'd accept for skilled work where you live. The formula only works if this number is honest.
Step 3: add fees and margin
Platform and payment fees come out of the sale, so check they fit inside your margin. For example, on a $100 sale, Etsy's 6.5% transaction fee plus 3% + $0.25 US processing is $9.75 before listing fees [4][5]. On The Spool List the maker fee is 10%, 7% or 5% of a completed order, depending on the plan [6].
A worked example: a bifold wallet
All numbers below are illustrative. Use your own.
| Item | Cost |
|---|---|
| Leather: 1.4 sq ft at $10/sq ft | $14.00 |
| Thread, edge finish, dye, packaging | $4.00 |
| Materials | $18.00 |
| Labour: 2.5 hours at $25/hour | $62.50 |
| Materials + labour | $80.50 |
| Wholesale (× 2) | $161 |
| Retail (× 2) | $322 |
If $322 is more than your buyers will pay, the formula is telling you something. You could speed up the slow steps (a laser for cutting, a sewing machine for long seams, batching), simplify the design, or sell this piece mainly direct at a price between wholesale and retail. Don't cut your hourly rate to make the numbers fit. That way you end up working for nothing.
Pricing custom commissions
Commissions take more of your time than stock items:
- Design time. Charge for the pattern, or build it into the price if the design is new.
- Revisions. Include one round of changes and price extras.
- Sizing. A belt to measure needs a waist measurement, and a mis-measure costs a strap.
- Special materials. Exotic leathers, specific colours or solid brass hardware may need a minimum order.
- Deadlines. Charge for rushing.
On The Spool List, buyers post custom jobs and you bid your price and timeline. The buyer pays when they accept, the payment is protected, and you're paid when they confirm delivery, so you're not chasing unpaid balances. See how it works, our price guide, and the leather craft market.
Find leather commissions or post a job free.
FAQ
Should I charge by the hour or by the piece?
Work out a per-piece price from your hourly rate, then quote by the piece. Buyers compare prices, not hours.
How much should I charge for a custom design?
Price the extra hours. If you'll reuse the pattern, you can share the cost across future sales.
Should my Etsy price match my own website?
Many makers keep one public price and absorb the fee difference. Whatever you do, make sure the lowest-margin channel still pays your hourly rate.
Is the 2× / 2× formula too high?
It depends on your market. The guide itself says it isn't carved in stone [1]. Test, and check what comparable handmade pieces actually sell for.
Sources
- Weaver Leather Supply: How To Price Your Leather Goods For Profit (Mary Savel, 26 October 2018)
- Tandy Leather: Montana Veg-Tan Side
- Bull Sheath Leather: Custom leather wallet craftsman's guide
- Etsy: Fees & Payments Policy
- Etsy Help: What are Payment Processing Fees for Selling on Etsy?
- The Spool List: Pricing (accessed 14 October 2026)