Understanding Your Expenses & Potential Earnings – Part Two: Pricing, Profit & Planning
In Part One, we looked at your business expenses, what to track and why it matters. Now that you’ve got a handle on what’s going out, it’s time to focus on what’s coming in.
In this part, we’ll help you:
- Estimate your potential earnings
- Set realistic sales goals
- Price your products or services for profit
- Decide whether an event or activity was worth it
Let’s get started
Start With Realistic Sales Expectations
It’s easy to dream of selling out at every event, but planning with your average sales in mind is far more helpful than relying on best-case scenarios.
Ask yourself:
- How many customers do you usually serve per event?
- What’s your average sale per customer?
- Do certain events perform better than others?
- Are there seasonal highs and lows?
Example: If you sell candles for €15 and usually make 10 sales at a regular market, that’s €150 in income. But if your stall fee, transport, and materials cost €90, your profit is €60—not €150.
This kind of calculation gives you a clearer view of how you’re doing.
Pricing for Profit (Not Just to Compete)
A common mistake we see is under-pricing. It’s tempting to keep prices low to compete with others at the same event, but if you’re not covering your costs and paying yourself for your time, then it won’t be sustainable in the long run.
Of course, not every member is aiming to turn their activity into a full-time business. Some enjoy trading or performing as a passion project, or like a hobby with perks—a way to enjoy crafting, baking or creating, meet new people, and earn a little income to cover materials or event costs. If you’re covering your costs and enjoying it, you’re already ahead of the game.
If you’re happy once your costs are covered, materials, insurance, stall fee/rent, and you enjoy the time spent making your products as part of the hobby, then it’s still a successful outcome. Most hobbies cost money, so if yours pays for itself, that’s a win!
But if you’re hoping to grow your income, whether part-time or full-time, then pricing with profit in mind is key.
- Materials Cost: Add up the cost of making or buying the item.
- Time Investment: How long does each item or booking take, and what is your time worth per hour?
- Overheads: Include costs like transport, insurance, branding, packaging, licence fees, or gear.
- Your Profit Margin – Most small businesses aim for at least 30–50% on top of costs.
Example:
Let’s say it costs €4 to make a product, you spend 15 minutes making it, and overheads come to €1. To make it worthwhile, you may need to charge €10 to €12 to cover everything and earn a fair return.
This applies across the board, whether you’re a baker, crafter, food producer, performer, or instructor. Your time and effort are worth something.
Know Your Break-Even Point
Your break-even point is the minimum you need to earn just to cover your costs.
Example:
If you’re attending a Saturday market and your costs are:
- Stall Fee: €50
- Fuel & Parking: €20
- Insurance (weekly estimate): €5 (annual/48 weeks)
- Materials/Stock: €60
Total: €135
That totals to €135 anything above €135 is profit. If you earn €200, your profit is €65. If you earn €120, you’re down €15.
Knowing your break-even point helps you plan better, and it makes it easier to spot when an event was genuinely worthwhile.
Trial, Tweak, Repeat
Very few get their pricing perfect on the first try. Start with your best estimate, then adjust as you go.
After each event, ask:
- Did I make a profit?
- What sold well?
- Were prices too low or too high?
- Could I try bundles, upsells, or different pricing next time?
Little changes can make a big difference over time.
Think Beyond the Stall
Many members increase their income by adding other revenue streams.
For example:
- Selling online (Etsy, Instagram, Facebook Shop)
- Offering classes or creative workshops
- Taking repeat orders or custom requests.
- Performing at private events or festivals
- Selling seasonal gift sets or hampers
Your market stall is just one part of your income stream—explore ways to turn one sale into ongoing income.
Your stall, class, or show is just one part of your business. Think about how you might turn one good day into something longer-term.
Important: If you’re expanding into new areas, always check that your insurance still covers you. It may need to be updated depending on what you’re doing. If you’re unsure, give Greg a shout, he’ll make sure you’re covered properly.
Don’t Compare Yourself Too Harshly
It’s easy to look around and feel like others are ahead, bigger setups, fancier stalls, more followers. But your journey is your own. Focus on your numbers, your goals, and what success means to you.
In Summary
Running a small business isn’t just about selling on the day, it’s about creating something sustainable that works for your life. And you don’t have to do it alone.
We’re here to support you with advice, practical help, and affordable insurance that suits your setup. If you want to chat through your pricing or planning, just drop us a line at info@iomst.ie , we’re always happy to help.
For more Guides Help, Support. Get in ouch with IOMST and become a member today!
Grainne & Greg
Just a little reminder:
This blog is here to spark ideas and help you think about your business in new ways. It’s not a one-size-fits-all guide, and that’s okay—what works for one trader might not suit another. Take what’s helpful, adapt it to fit your style, and if you ever need more tailored advice, don’t hesitate to get in touch. That’s what we’re here for—supporting you and your business every step of the way.