Should you offer a discount on bulk orders of handcrafted products?

Should you give a discount to customers who order a “bulk” amount of tumblers?

Check out my YouTube video with the example tumblers as I break down cost, material and time here

Let's chat about the pros and cons first. 

Pros: 

  • Customers love discounts
  • This could push the customer to purchase
  • You are using less materials when doing it all at once

Cons:

  • Bulk orders does not equal less work when it comes to handcrafted products
  • Customer could want a different design for each tumbler
  • Customer could expect a bulk discount every time
  • Less profit in your pocket

So let’s show some work:

Tumbler: 20 oz Griffin Blanks Skinny Straight with *NEW* Screw Flip Lid & Straw
Use code BAMF10 to Save
(https://griffinblanks.com/collections/tumblers/products/20oz-straight-skinny-screw-flip-lid-with-straw)

13 x 8.25 = $107.25 - $10.73(discount) = $96.52 / 13 Tumblers = $7.42 per tumbler

Paint: Pop of Color (https://popofcolorpaints.com/)
Colors used: Hot Pink, Neon Pink, Bright Yellow, Old Army Green, Purple, Grey, Purple, Navy Blue & Red Red mixed together, Terra Cotta, Pure White, Black, Lamb’s Wool

These paints cost approx. $7.95 for 4 oz.
4 oz = $7.95 = 118.294 mL = $0.067 per mL x 390 mL (total for 13 cups) = $2.89

Vinyl Used:

Teckwrap Craft in the following colors:
Silver Holographic https://amzn.to/3zKw9lu, Dark Grey Holographic https://amzn.to/3zKzp0z, Satin Metallic Champagne https://amzn.to/3Gd0Dzd, Coral Orange https://amzn.to/3qeDiaA, Peach Yellow Pink https://amzn.to/3FcFCTZ, Hot Pink https://amzn.to/3faCcGE,

Create by Firefly in the following colors (https://createbyfirefly.com/?stamped_referral_code=Ghv5oTax&rewards-launcher=view-referrals-claim) Use code BAMF-LOVE to save $
Metallic Raspberry, Metallic Emerald Green & Purple Metallic

Other vinyl used:
Transfer tape (Cricut Standard Grip) https://amzn.to/3zGJKdC $0.012/sq inch
Oracal 631 (for the template) https://amzn.to/3r7NXmX $0.007/sq inch

Template Cost: 10”x9” = 90 sq in x 13 tumblers = 1170 x $0.007 = $8.12 / 13 = 62 cents per cup (bulk & single)
Transfer Tape for Template: 4 ( 10.5” x 9.5” sheets) = 399 x $0.012 = $4.79 / 13 = 37 cents per cup (bulk)
1(10.5” x 9.5”) = 99.75 x $0.012 = $1.20 (single)

Teckwrap averages $0.125 per square inch which is the number I am going to use for the vinyl
Lines & Name: 918 x $0.125 = $114.75 / 13 = $8.83 per cup (bulk & single)
Transfer Tape: 144” = $1.728 / 13 = 13 cents a cup (bulk)
25” x .007 = 18 cents a cup (single)

Epoxy & Sealer

Quickcoat: 8 oz = 236.588 mL = $29.95 = 13 cents/mL
30 mL x 13 = 390 x 0.13 = $50.70 + .18 (gloves) + .15 (cup) = $51.03 / 13 = $3.93 per cup (bulk)
30 ml x 0.13 = $3.90 + .18 (gloves) + .15 (cup) = $4.23 per cup (single)

CCDIY Fast Set Epoxy = 1 gallon = 3785.41 mL = $129.95 = $0.034 per mL
(Bulk)Materials = 0.18 (gloves) + 0.01 (popsicle stick) + 0.13 (30 seconds of torch x 13) = 32 cents
(Single)Materials = 0.18 (gloves) + 0.01 (popsicle stick) + 0.01 (30 seconds of torch) + .24 (cup) = 44 cents

Layer 1:
11 oz = 325.309 mL x 0.034 = $11.06 + 32 cents (materials) + $1.17 (big mixing cup) = $12.55 / 13 = 97 cents per cup (bulk)
30 mL x 0.034 = $1.02 + 44 cents (materials) = $1.46 per cup (single)

Layer 2:
240 mL + materials = $8.72 / 13 = 67 cents per cup (bulk)
20 mL + materials = $1.12

Layer 3 & 4:
480 + $0.64 (materials) = $16.96 / 13 = $1.30 per cup (bulk)
40 mL + $0.88 = $2.24 per cup (single)

Glitter

Peachy Olive Glitter (2 oz increments by weight)
St Jude $8.50, Fitz $12.50, Teeg $8.50, Beloved $9.00, Make it Pink $13.00, Reef $10.00, Colt $8.50, Dorothy $9.00 = 16 oz @ $79 = 453.592g = 17 cents per gram

Backfist Customs (2 oz increments by volume including 15% discount using BAMF15)
Spring Pink $12.00, Electric Bubble Gum $14.95, Black Sparkle $16.95, Maroon $13.95 = $57.85 – 15% discount (using BAMF15) = 8 oz @ $49.17 = 239 grams = 21 cents per gram

Average of both = .21 + .19 = .38 / 2 = 19 cents per gram

1 lb of glitter covers 100 square feet = 453.592 g covers 100 sq feet
100 sq feet = 14400 sq inches

20 oz tumbler has the following measurements 8.1875” Height, 2.875” Diameter, 9.0321” Circumference, 1.4375” Radius

Using this calculator: https://www.calculatorsoup.com/calculators/geometry-solids/cylinder.php

Total surface area = 86.93376
Base surface area = 6.49181
(to exclude the open top portion of the tumbler you subtract the base SA from the Total SA = 80.44195”
80.44195 x 13 = 1045.74535
453.592 (1 lb converted to grams) x 0.19 (average per gram of glitter) = $86.18
86.18 / 14400 = $0.00598489
1045.74535 x $0.00598489 = $6.26 / 13 = 48 cents per cup (bulk & single)

Time

Prep: 40 min (bulk) & 3 min (single)
Paint/Glitter: 300 min (bulk) & 30 min (single)
Template: 65 min (bulk) & 20 min (single)
Quick Coat: 30 min (bulk) & 5 min (single)
Epoxy: 100 min (bulk) & 50 min (single)
Sanding: 60 min (bulk) & 10 min (single)
Cleaning: 30 min (bulk) & 10 min (single)
Total: 625 min (bulk) & 128 min (single)

$12/hour = 20 cents per minute = $125 (bulk / $9.62 per cup) & $25.60 (single)

 

13 cups total

13 cups (per cup)

Single Cup

Epoxy

$38.23

$2.94

$4.82

Vinyl

$127.79

$9.83

$10.83

Tumbler

$96.52

$7.42

$7.42

Quick Coat

$51.03

$3.93

$4.23

Glitter

$6.26

$0.48

$0.48

Paint

$2.89

$0.22

$0.25

Total Materials

$322.72

$24.82

$28.03

Labor

$125

$9.62

$25.60

Total Cost

$447.72

$34.44

$53.63

 

Using the usual formula (from University of Michigan) to estimate retail cost:

[(Materials x 4) + (Wage x Time)] / 2

Bulk = [(322.72 x 4) + (125)] / 2 = $707.94 ($54.46 per cup)
Single = [(28.03 x 4) + (25.60)] / 2 = $68.86

In my opinion, when PRICING your bulk order, start with the estimated retail price of the single cup and multiply it by the number of cups the order is.

So for example, we can round the retail price to $70 and then you would do $70 x 13 =$910.
After labor & materials: $910 - $322.72 - $125 = $462.28 in profit.

If you round the bulk estimated retail price to $55 x 13 = $715 leaving you with a $267.28 profit.

The second price in the example leaves little to no room for any type of discount, plus are you really getting in what you are putting out?

So let’s look at discounting the $910 retail price for 13 tumblers:
10% = $91 off = $819 ($371.28 in profit)
15% = $136.50 off = $773.50 ($325.78 in profit)
20% = $182 off = $728 ($280.28 in profit)
25% = $227.50 off = $682.50 ($234.78 in profit)

Personally, I wouldn’t offer more than 15% off. Even then you could always supplement that percentage off to other discounts/rewards. You could do free shipping (which could be the same price or less than the 10% off option), you could say 12 cups at cost + 1 for free (which would be less than the 10% discount – and this is also a great option for bridal parties, I usually do retail for each cup and the bride’s is free), you could do free delivery. And you know what you can also do? Say no. You can tell your customer you do not offer bulk or wholesale discounts because what you are doing is a skilled labor and you are providing handmade and handcrafted products not made by a machine therefore duplicating an order or ordering more, does not create less work.

I hope all of this math helps you instead of confusing you. And I hope that all of this information helps you understand the importance of pricing and making sure you are charging your worth!

Leave a comment below with your opinion, or what you like to do in these situations.


4 comments


  • Debi Wolfe

    This is awesome. I’m quite scared to actually check mine now because by doing it, I may notice that I’ve been charging them just a tip and not really the bill hahahaha.
    I would love to have a print out of this if you ever make one.
    Thanks so much for all that work.
    Debi ❤❤


  • Gabby

    Amazing information is there any way I can get a way to email it to me to be able to print it and pit it in my studio
    Very grateful
    Gabby


  • LaToya Louis

    Thank you so much for sharing this. It helped me and I will be doing this break down for mine now so I can see if I’m making out or losing out on money. So helpful


  • Blair

    This is perfect and beneficial for all crafter especially newbies. I personally don’t think a lot of tumbler makers are charging enough to make a good profit. Thank you


Leave a comment

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


You may also like

View all
Example blog post
Example blog post
Example blog post