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How to Price Your Crocheted Items




There are so many different ways that you can price your crocheted items (or other crafty creation).  In the many crochet FB groups that I'm a part of, I see it almost daily "How much should I charge for this?"  "Is this too cheap/expensive?"  It's hard to know what to charge.  We don't want to sell something to cheap, where we could have gotten more money, but we also don't want to price it too high and then we get no bites on our products.





Here's a few things to think about first before you even figure out the actual amount.

  • What type of area do you live in?  Is it more affluent, or is your town mostly lower income.  If it's the latter, you are not going to get the top dollar amount that other people may be able to get from the same product.  You have to know your clientele first. 
  • What is the quality of the product.  Yes, you may have spent hours, even days completing it, but you need to be honest with yourself.  If you are just starting off, most likely, your products are not going to look like someone's who has been crocheting for years.  You may have to price your items a little lower, and gain a following. 
  • Piggy backing on the previous thought, what kind of following do you have?  Just like regular stores, crocheting is all about supply and demand.  If you have a lot of people who love your work, follow you on all the social media channels, and buy from you often, then you could probably charge a little more.  
  • With all these things in mind, I usually then check out Etsy and see what others are selling similar items for.  This will at least give you a range.  
Related Article: How to Make Money Crocheting!

Now for the pricing part:

I see this formula around quite a bit: 


If you can get this price that's fantastic.  But lets give some examples to see what this really comes out to.  

Let's take my Mermaid Tail Purses as an example.  





These take about 2 hours to make and we'll say I'm only trying to pay myself $7 an hour.
It also takes about $3 in materials.

Time + Material = Cost
$14+ $3 = $17
Cost x 2 = Wholesale
$17 x 2 = $34
Wholesale x 2 = Retail Price
$34 x 2 = $68!!

There is no way I would get $68 for this item.  I don't think I could even get $34 if I just wanted to sell it at the wholesale price.  

I do, however, think I could get the "cost" price, but that is only paying myself $7 an hour.  Minimum wage is higher than that!!!


Now let's look at the another popular pricing formula:  


Let's use the Mermaid Tail Purse for this example again. 

Materials x 3 = price
$3 x 3 = $9

There's no way I would only charge $9 for this product.  Yes I know I'm still making a profit, since I only spent $3 on materials, but the time I take to make it is worth more than $6.  Plus, I know people will pay more than that. 

You know how much I charge for that purse?  $15.  

I feel like that is a reasonable price that I'm at least making a profit from it, and people will also buy it.  If I priced it too high, I know I would only get a couple of sales.  

So, honestly, it's really up to you.  Take everything I mentioned, and figure out what you feel comfortable with.  
  • Are you okay not making a lot of sales because you would rather get more for an item? 
  • Are you okay with not making a huge profit, but always have orders in your queue?
  • Are you going to have your material cost be the regular price, or the sale price you paid? (I always do the regular price, because there is no guarantee you'll get the sale price next time). 
Use these formulas as guidelines, as well as what other people sell them for.  Decide if you want to be on the higher or lower end, and stick with it.  If you need to need to sell more of an item, because you have too much in inventory, then you can always do a "sale".  Don't keep changing the price though, because your customers will notice, and then they will start to think that you are not confident in your work.  

Do you have any formulas that you go by?  What works for you? I'd love to hear in the comments below!
Craftsy

Comments

  1. Interesting...this was the formula I used to charge for my handmade jewelry.

    Example:
    Cost of material = $15
    Cost of labour ($5/hr) = $10
    Cost of design = $20 (standard cost)
    Total cost = $45
    I would mark up 40% = $63

    Sometimes I would give 10% discount.. to loyal customers so I would only mark up 30%.

    Cheers.

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    1. Wow, your lucky your able to charge that much! It really just depends on your clientele. I find that people wouldn't pay that much for crochet. Great formula.

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  2. You enlightened me with this blog.. I am crocheter too.. but not an expert like you, I have always had this doubt about how they price things.. and if I think about selling some projects how should I price them.. I've made lots of hats and scarf for ppl buy never for money just because I didn't know how much to ask for. Now I have an idea

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    Replies
    1. Awesome, I'm glad this was able to help you! Let me know if you have any other questions!

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  3. You and I are in agreement about both charts you've used in your examples. Every time I see the first one (time/materials/cost/wholesale/retail), I cringe because, while that will work for manufactured items that cost pennies and mere minutes to make, it's completely unrealistic for most handmade items...and especially for crochet which can take HOURS. I START with the Materials x 3 method and then adjust depending on item complexity and popularity.

    I also always tell people who post those "what do I charge for this" questions just what you did about taking so many other things into consideration first.

    Great minds think alike? ;)

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    Replies
    1. Awesome, I'm glad to hear that others think the same things when pricing! Thanks so much for commenting!

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