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Crafts

Selling handmade products, insurance and sustainable pricing

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“Handmade” does not remove product-safety, traceability, consumer-rights or product-specific rules. The seller is responsible for what is placed on the market.

Selling handmade products

Identify the product category before choosing the label or safety evidence.

  1. Describe the intended user, reasonably foreseeable use and foreseeable misuse.
  2. Check whether specific law applies—for example toys, cosmetics, candles/chemical mixtures, electrical goods or food-contact articles.
  3. Carry out and document a safety assessment; keep material and supplier information.
  4. Add maker/responsible-person identification, batch or serial traceability, instructions and warnings as required.
  5. Use the correct conformity marking only where the product-specific law requires and supports it.
  6. Keep a complaint, incident, withdrawal and recall process.
  7. Display the total price and a contact route for faulty goods or questions.

From 13 December 2024, EU Regulation 2023/988 on general product safety applies in both the Republic of Ireland and Northern Ireland, with NI-specific UK guidance on implementation.

Insurance considerations

Match the cover to the product and public access.

  • Tell the home/farm insurer about business stock, customer visits, signage and the structure.
  • Consider public liability for injury or property damage at the site.
  • Consider product liability for injury or damage caused by a supplied product.
  • Check stock, theft, money, weather, transit and equipment cover.
  • If anyone works for the business, check employers’ liability and employment status rules.
  • Give the broker exact product types; a policy covering knitted goods may not cover candles, cosmetics or toys.

Pricing advice

Price for replacement, not just for the joy of making.

Cost layer Include
Direct materials All components, packaging, labels and wastage.
Labour Design, making, finishing, packing, stocking and admin time.
Overheads Tools, electricity, studio, insurance, card fees, photography and market/testing costs.
Risk and margin Defects, weather damage, theft, unsold stock, tax and a sustainable profit.

A useful check is: total batch cost ÷ saleable units = true unit cost. Then add the margin needed to fund replacements, growth and tax. Compare with the local market only after calculating the true cost.

  • Use a small number of easy-to-pay price points.
  • Bundle slow items only when the bundle remains profitable.
  • Review time-heavy products separately; popularity does not guarantee margin.
  • Do not coordinate prices with competing sellers.

Official sources

Scope note: These sources are signposts, not a substitute for advice on a producer’s exact product, process, premises or sales route.

This is general information and does not replace legal, food-safety, accounting, planning or insurance advice for a particular business.

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