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

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  4. I love crocheting, and just started learning more stuff to do. I also made blankets, baby dresses, baby shoes , afgans, etc.. But was afraid of over charging but now with your example i can have a ideal . Thanks

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  5. I'm generally a fan of the first formula but needlework almost never works with that one. My favorite for needlework is actually a modification of the second formula. Materials x3 = cost, then cost x 2 = price. Some items you can then even go so far as have that be the wholesale price and double, or add the original cost, for retail. So your mermaid purse would be either $18 or $36/27.

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  6. I highly recommend not to undercharge. I had a storefront for 20 years and ran into many women through the course of those years. Women tend to be uncomfortable charging a fair price where as men tend to not have those hesitations. I recommend you decide what you want to make per hour (and don't undervalue your time and expertise) and then add in the cost of your materials as well as the time to go get them, if you do that. If you get your materials at a discount, figure in the regular retail price, not the discount price. Your time and expertise are worth something. Don't give it away! :)

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  7. Thank you so much. I didn't have any idea about pricing,now I want to sell my projects.I am crocheting since my young age,crochet so many things for my grand daughters ,now I want to sell. Thank you so much.

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  8. Somewhere on Ravelry, there was a similar discussion (repeated many times). One common suggestion, was to make the labor charge based on yardage, rather than try to time yourself. For crochet, 10-15 cents per yard (right now, 12 cents/yd will ~equal min wage here, for my speed). Super bulky yarn scarves and hats-- pretty quick, and therefore "cheap" labor-- one I just made, was ~ $7 labor (plus $6 for the yarn + 10% overhead) for "wholesale"; "retail" will depend on where I sell it, but probably between $20 and $25. On the other hand, a lace-weight shawl has ~1100 yds, and takes "forever" to make-- so ends up with a wholesale price of $150-200, depending on the yarn.
    Knitting, which takes longer for people skilled in both, was priced at 20-30 cents/yd, with surcharges for designs needing "extra needles".

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    1. I feel like that would take even longer to figure out. I don't measure how much yarn I use so it would be pretty time consuming. But if that works for some people then that's great!

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    2. Thanks for this advice, I weigh my finished product to figure out yardage in order to determine supply cost so this will be an easy step to add.

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  9. I sell on my facebook page and also at a local Apple Farm. I have been crocheting for about 10 years and it's taken some time to figure out my pricing, but it's pretty close to $10/hr + materials for wholesale. I add 25% for retail price at the Apple Farm, and that is what they take out. If I have any specialty items, I take into account how much a similar item will sell for on etsy and start from there. I've actually gone UP in my pricing over the years because I've gotten more confident in my work! :D

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    1. This is what I do, basically --- but I try to do $14 an hour (minimum wage in our area) + materials (including the pattern if purchased from another designer) to get cost. Then I adjust the markup to land on a reasonable price with the average being 25%. If the item won't bear this formula, then I only make it for friends and family.

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    2. You mentioned $14.00 an hour ! for minimum wage... What country is this in ... I'm in the U.S. and that amount isn't being paid here....

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  10. My wife crochets amigurumi. For the pricing, we ignored the materials cost since items rarely use a full skein. Instead, we price items by the length of time (non-stop) for completion. For standard pricing, items come to 10 x hour. When discounting an item, we drop to 8 x hour. That also gives wiggle room for discounts, which drives more traffic. Conventions use the same pricing. Shipping is done as a flat fee of $5.00, which is usually a wash.

    Hope this helps.

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    1. Thanks Barry! I do amigurumi as well and have been pricing at $10/hr. Many folks still get sticker shock, but others totally find my prices reasonable. Other crafters have said I should charge more per hour, but I think hardly anyone would buy my items if I went up on price.

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    2. Sounds like you found the sweet spot. It's totally based on your area and your audience. Don't come down on prices just to wash your hands of an item you made. Instead, if it doesn't sell, it's another item for a different show.

      Time is the most expensive aspect of crochet (aside from your hands). Don't undersell your work. Sometimes it just takes some patience and a bit of creativity.

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  11. I think it also helps that generally I'm the one to price my wife's work. This way her bias toward her work is a non-factor.

    Sometimes you just have to say that this takes too much time and won't sell at the rate to make it worth while.

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    1. I love that you price your wife's work! I ask my husband for suggestions all the time. I don't have a formula that I use, but I like to think I pay myself anywhere between $8-10 an hour!

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  12. I'm new to selling items. I've made a few sales but would like to sell more. How do you know what to make that will sell? Also, for pictures, where do I get a head and/or bust so I can display the items properly?

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    1. It's based on you and your willingness to try things out. I'd recommend maybe going to a convention and observing similar booths. Also figure out what is getting the most attention through Facebook/Twitter etc.

      For your displays, Walmart has styrofoam heads that are great for beanies.

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    2. Thank you! I will give that a try

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    3. Hummm... I have never seen Styrofoam heads at any Wal-Mart and as a former Truck driver for 13yrs. I have been to lots of Wal-Marts all over the US.... But Hobby Lobby has them for sure!

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    4. My wife works for Walmart. You can find them on their mobile app. It was fairly inexpensive compared to places like Jo-Ann's.

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    5. Hi. Barry .... You did not indicate that a styrofoam heads were a " online Only product" which would be critical information...

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    6. They aren't, we walked right in and bought one. The app allows you to find the location inside the store.

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    7. I actually buy my styrofoam heads at Sally beauty salons! As far as inventory, it's really trial and error. I've been to many craft fairs and use information from what I sell to help me figure out what else I should make.

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  13. I don't agree with judging the clientele in your area based on their ability to afford your work. It's your work, and the pricing should start and end there. If someone can't afford an iPhone, they don't sell them cheaper -- it's still an iPhone, and if people want one, they pay. Same with your work. People make decisions about what they can and can't afford all the time, and will pay for what they value. The consideration about the area's clientele could be a good consideration for where to be a vendor, but not how to price your items.

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    1. I think it does have some merit. If you are just starting out, and most of your clientele are from word of mouth in your area, then you want to base it off of the ability to afford the items. IF you are crocheting to make money. IF you are crocheting for a hobby, and are okay with not making many sales up front, then yes, price it where you see fit. I feel like you have to make a name for yourself first, and sometimes that means selling things a little cheaper. That's just my opinion though. :)

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  14. The problem with that is you have to be flexible. Cities tend to have more pay (traditionally), whereas a smaller town has lower. Your product is only worth what someone is willing to pay.
    Don't undercut yourself though.

    You should ALWAYS be mindful of where you are, who your target audience is (Buisness 101) and other various demographics that affect your sales.

    But again, don't undercut yourself. It does a disservice to you and others who crochet.

    Is it worth sitting on stock or selling it? Sitting on stock does cost money. Is the vendor opportunities worth the cost? Is the distance so far from where you live that is unreasonable?

    The answers are far too nuanced to definitively say. What works for one may not work for all.

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    1. I just ordered a swirled crochet beannie and it cost me $85.51 including $20.03 for shipping. My husband just about divorced me. I think $85.00 is way too expensive for a hat.

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    2. To : Unknown regarding the Swirled beanie ... I can only say.. that amount is too expensive for me! And I'm very grateful that I know how to crochet... and would you please share this pattern with me!... ( Sarcasm)

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    3. Wow! Was the beanie made of special yarn? I don't think I could ever sell something like that for that much!

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  15. So where do you sell your items? Social media?

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    1. Facebook, conventions, and word of mouth. At least currently. It's probably the same for many others here.

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    2. I did a LOT of shows last year, which helped me get the word out that I make custom items and have a stock of quite a few other items. I now have quite a few custom orders getting me through January and into February. Last year I was learning about what kinds of shows were best for my types of products. I learned not to do rummage/craft sales, and to watch out for markets with loads of Direct Sales folks. The shows that I've done really well at have been all handmade, but also cost more to be a part of. I've got Facebook and Instagram and take orders through messages and payments through Paypal or Venmo. Feel free to check out my social media. www.facebook.com/TurtleAndBirdCreations

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    3. Hi ... I have often had many tell me that I should sell the items that I have made ( everyone loves my work) I am still in the category of, "this is my hobby" this is what I do ... I have only made for my family and a few friends .... Question: regarding Stock .... How do you store your stock .... And how much stock should I build up to before considering A fully stocked shop that I could market as "A handmade Shop" Also... on seasonal items ... do you reverse the seasons, when making them ... meaning make Summer & Spring " warm weather items" through the winter.. and in turn make the winter items all summer.. Thank You.

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    4. I sell my items through FB and my Square Market store. I also go to Craft fairs in town. I have been lucky enough that because of word of mouth, and FB, my sales reach all over the US. It's always exciting when I get an order from a new state!

      As far as stock, that's always a sore spot between my husband and I. LOL. I have a lot of inventory!!! I don't do crocheting full time anymore since I became a teacher 2 years ago. But I still have a whole closet full of inventory! So yes, I figured out the most popular hats (what I sell a lot of) and then made 2-3 at least of each size (and I have 8 different sizes). After a show, I would replenish my stock back to it's original glory.

      As far as what do I make and when, it really just depends. Like I said, I always tried to have a full stock on most of my hats. This way when I got orders in, the turn around would be pretty quick, which would also make my customers happy! During summers, I would often be replenishing stock, but also working on new items. I feel like the summer is the hardest time for business crocheters because there isn't a ton that people will buy. Mostly summers are filled with water balloons, stuffed animals and baby shower gifts.

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  16. Thank you so much. Now I can not feel so guilty of how much to charge. I would do the amount of materials and do $5 an hour and add an extra little bit for the hardness ea steps of expertise.
    Like easy I would add $2.
    Med $4
    Intermediate $6
    Advance $8.
    And if they wanted it special order like monogram it would be $12 extra.

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