No More Guesswork: A Maker’s Guide to Pricing Leather Goods

Cut your leather and price your project with confidence

You’re not alone if you’ve ever stared at one of your finished leather projects and thought, “What on earth should I charge for this?” Pricing your own work can feel tricky, especially when you're dealing with natural materials like leather that don’t exactly come with perfectly straight edges and consistent shapes.

Learning to accurately assess your costs is a valuable lesson no matter where you’re at in your leather working journey. Whether you want to make your hobby sustainable or build a business, you’ve got to get real about your costs. Let’s walk through how to figure out the cost of a leather project, from start to finish. With no fluff or guesswork, this practical approach works and is invaluable to anyone just getting started.

Step 1: Know What Your Leather Really Costs

Pricing leather goods starts with determining leather costs

Here’s where it gets interesting. Leather isn’t like buying fabric by the yard. You might be buying by the side, by the pound, or by the square foot so the first thing you’ll want to do is convert everything into a cost per square foot. That’s your baseline.

Let’s say you bought a side of skirting leather for $250, and shipping cost you another $30. That’s $280 total.

Now, not all of that leather is usable. Some will have holes, brands, or weird edges. It’s good to plan for about 15% waste on average, though sometimes you’ll get lucky and it’s closer to 10%. (On the flip side, you may have sides where you have to toss more than expected. It’s just part of working with a natural material!)

If that side is about 22 square feet (which is pretty standard for a heavy steer side), you’re realistically working with around 18.7 usable square feet.

Example:

$280 ÷ 18.7 = $14.97 per usable square foot

That’s your true leather cost. Knowing this number is key when you start figuring out your project cost.

Step 2: Figure Out How Much Leather Your Project Uses

Determine how much the leather costs for your belt project

Once you know your cost per square foot, it’s time to figure out how much leather you actually use for an item. This part is usually pretty simple once you get the hang of it.

If you’re making a belt that’s 1.5 inches wide and 72 inches long, you’ll multiply those together to get 108 square inches.

There are 144 square inches in a square foot, so:

108 ÷ 144 = 0.75 square feet

Now, multiply that by your leather cost per square foot:

0.75 × $14.97 = $11.23

So, you’ll discover that your belt used about $11.23 worth of leather.

If you’re working with round shapes—like a duffel bag end or a patch—the math looks a little different. Use the formula for the area of a circle:

π × radius²
A 10" circle has a 5" radius.
5 × 5 = 25 × 3.14 = 78.5 square inches
78.5 ÷ 144 = about 0.55 square feet

It sounds complicated at first, but once you do it a few times, you’ll be able to estimate projects in your head surprisingly accurately. It’s also helpful to keep a calculator handy or make a cheat sheet for common shapes and sizes you use in your projects often.

Step 3: Add in All Your Other Costs

Hardware, labor, and other costs help give you a total picture

This is the step a lot of us makers skip, but it makes a big difference in your bottom line.

Here’s a list of additional costs to consider:

Hardware – buckles, snaps, rivets, and other fasteners
Thread and adhesives – don’t forget glue or tape
Finishes – oils, dyes, and conditioners
Labor – even if you’re a one-person shop, your time matters

Let’s say our example belt also used:

$3.00 in hardware
$0.25 in dye and oil
$25.00 for labor

Add that to the $11.23 in leather, and your total cost is $39.48

Now, you’ve got a clearer picture of what it actually costs you to make the item.

Step 4: Mark It Up for Profit

Sell your leather goods for profit by pricing them right

Keep in mind, you’re not just covering your costs. If you’re running a business (or at least trying to make your hobby pay for itself), it’s time to talk profits!

A 40% profit margin is a pretty common goal. To figure that out:

Subtract your margin from 1.00 → 1.00 − 0.40 = 0.60
Divide your total cost by that number → $39.48 ÷ 0.60 = $65.80

That’s your target retail price if you want to earn a 40% margin.

You can, of course, adjust that up or down. Some items (like one-of-a-kind, hand-tooled pieces) can command a higher margin. Others, like batch items for wholesale customers, might fall closer to 30%.

Just make sure you’re not underpricing because you’re unsure. You’re not selling just a belt or leather good—you’re selling craftsmanship, experience, and your own unique style.

Step 5: Don’t Forget About Overhead

Take in to account machinery and workshop costs when pricing your leather goods

Overhead isn’t always obvious, especially if you’re just getting started. But it can add up fast.

Think about:

Workspace costs
Website hosting
Craft show booth fees
Tools and equipment maintenance
Shipping materials
Marketing, photography, and branding costs

Even if you’re not renting a studio or paying employees, you still have soft costs. It’s a good idea to estimate your yearly expenses and divide that by the number of items you plan to sell or produce. This provides a rough per-item cost that can be added to each project to help cover these expenses. You might be surprised how much it adds up after tallying these expenses.

A Few Quick Tips from the Bench

How to price your leather goods for success in your studio

Track your scrap and waste:
Save all your scrap from a hide in a box and weigh it when you're done. Over time, this will help you monitor actual waste percentages and help you cut more efficiently.
Batch work when possible:
Making five belts assembly-line style is far more efficient than crafting them one by one. Batching similar tasks helps reduce time, streamline workflow, and take full advantage of economies of scale.
Revisit your numbers regularly:
Material costs can shift over time, so it’s important to review and update your pricing every few months. Staying on top of your numbers ensures your prices remain accurate and profitable.
Price with confidence:
Undervaluing your work sends the wrong message. Be mindful of setting prices in a way that reflects the time, skill, and tools you’ve invested. Your unique craftsmanship deserves it!

Price it Right. Know Your Numbers.

Price your leather goods without guesswork

In the end, smart pricing comes down to clarity—not guesswork. Understanding your costs and valuing your craftsmanship ensures every piece is priced with purpose. Whether you're creating for friends or running a full-time business, this approach helps you stay profitable, confident, and proud of the work you bring to life.