Handmade Crochet Product Pricing Tips 🧶
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- เผยแพร่เมื่อ 13 ก.ค. 2024
- If you’re stumped on how to price your crocheted products then keep watching because today I’m giving you the five things you need to consider to keep your business profitable and making sales.
Now crocheting, in terms of production, is a hard business to run. So it might take you two hours to make a baby hat. And even that is kind of fast. But if you're making something like a sweater we could be talking about dozens of hours to finish one product. Now, I have a standard pricing formula video, and with this standard formula, usually you take your time and your cost of materials and multiply it by 2 to get a wholesale price, and then multiply it again by 2 to get the retail price. This is multiplying your original cost by four or five times even, depending on what you sell, to get a final retail price. So, let's say you’ve set your hourly wage to $20 an hour.
If we ran my standard pricing formula on a crocheted hat, and let's say it took $5 worth of yarn, my formula would say that you need to charge $125 retail price for that hat. But let’s be real, that’s probably not happening. I could be wrong, maybe you have amazing branding and that price point works for you, but for most of us that’s not realistic. And so this can lead to a bit of despair, right? Does that mean you're destined to work for less than minimum wage? Not exactly. If you can keep these five considerations in mind when pricing your products, then you can absolutely make your crochet business work. Let’s dive in!
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Thank you for the video, I just wanted to point out an issue very dear to me concerning amigurumis and the value people give to handmade toys. I do not own a business and I just crochet as a hobby, but over the last couple of years I found myself in very different situations, where I saw people encouraging makers to start selling their amigurumis and then simply being shocked at the idea of paying 70/80 dollars for the "really cute thing" that of course everyone would like to buy, but that costs 10 to 15 hours of work and some 6 to 8 dollars just for material costs.
Not to mention all the people that expect to pay the same price for a 100% custom order and for something that you can make out of a free online pattern just because they both look nice. I'm not talking about a 5 dollars difference, I really had people who make a solid average wage working a 9 to 5 office job offering 18 dollars for a piece that they themselves called a piece of art and took a good 10 hours of nonstop crocheting and had multiple details and colors on it.
I was seriously wondering if there are appropriate niches for this kind of products, because I find it very demotivating for any maker to see two pieces of a very similar quality cost 35 and 80 dollars on Etsy while doing their research and trying to figure out what kind of prices they can ask for. I can't even imagine how anyone could make a living out of it, I can't see that big of a market for patterns - no matter how wonderful - that would ensure an income able to balance out the costs.
Unfortunately there will always be people who underprice, either because they do their work as a hobby and don't worry about pricing correctly, or they really just don't know how to accurately price their work. This is an ongoing issue for makers, especially those who work in a lot of detail, and is why I really try to get my pricing formula out there.
@@CreativeHiveCo So far, the only people who I met in person who were really committed to support artisans were customers of fair trade shops during Christmas season. I collaborated as a volunteer with a few of them and I noticed that it does help to show what's "behind" the finished product: maybe that's also something that should be part of any marketing strategy for handmade products, be it online or otherwise.
Well, the best of luck for your work and to all the makers who are trying to make a living out of their passion, I hope that in time it will be possible to raise awareness on the value of this work.
This literally came out right when I needed it! Thank you!
Awesome! I am so happy to hear that!
It's wonderful when timely information comes to you! :)
i find that either people really undervalue their work or they really OVERvalue their work. there seems to be no good in between at all lol
I relate to that, Jamie! Beginners are especially confused with pricing - it's definitely something that takes some time to get right!
Just what I needed to understand how to price my crochet hats 😍
I'm so glad to hear that, Ester!
So awesome!
By far one of the best pricing videos I've come across
I'm so happy to hear that!! Thank you so much! 💗
I really love watching your videos!! They are super informative and your bubbly personality is infectious!
Thank you so much, Jen! I really appreciate that!
Me: :/
Her:
Me: :D
Thank you Mei I have literally shared and been raving about your videos in my facebook entrepreneurs group called Uplift women entrepreneurs a few women will be following you and truly encourage them to take a course.
Thank you so much for sharing - I truly appreciate that so much and I thank you for following along!
This is great info, and very timely. Thank you Mei.
You're so welcome! I'm glad it was helpful for you, Dee!
Definitely a great reference to make sure you are on track.
thank you so much for sharing important questions/points to consider!
You're welcome, Lily! Thank you so much for watching!
Thank you Mei, this is so helpful!
Thank you so much!! Really appreciate it! ❤️
What perfect timing Mei
I was just crocheting a flower to attach to a knitted tea cozy. Pricing was next step but I can watch this while crocheting the next flower :)
That's a great plan, Shoshanah!
@@CreativeHiveCo Thank you. My knitting and crotchet items are all done while watching videos I need to learn. I have other creative products that are not as versatile meaning I have to focus on that product and not do multi-tasking.
The only way I can do my knitted / crotchet work is multi tasking as people wont pay for the time that goes into producing these products.
I design and sell my handmade knits. All knit by hand by me. I troll etsy looking at competitors pretty regularly. I see people so severely under pricing their items, and at the same time I see people charging $300 for a chunky yarn weight shawl (chunky yarn so it took fraction of the time of a fingering weight yarn) and on top of that it's an acrylic yarn from like a big box craft store. Not even like a luxury yarn! So I don't think that basing your prices on what others are doing, obviously be aware, but I don't think a lot of ppl know what they're doing. I try to have a range of prices, a range of yarns, I charge more for luxury yarn items. I also make a lot more per hour on some items, like a chunky infinity scarf (takes me maybe 2 hours) VS a fingering weight large shawl (takes me 15 hours). So maybe that will help others, that's how I look at it, my hourly wage averages itself out.
Yes, you definitely want to have an awareness of what others are charging - that is a good term for it. But you definitely should charge based on materials and time, and since you can set your own hourly rate, as you get more skilled you can charge more for your time/expertise.
Thank you for writing this! I'm feeling like I will stick with patterns because it all seems difficult to figure out how to make a profit. It seems defeatist though, any advice on that?
@@Nina5484 well I don't sell my patterns cause they're a mess honestly. lol. they're written so I understand them but not professionally written. I was just feeling defeated myself the other evening a little bit because someone favorited on of my luxury shawls, and I was looking at the other shawls they favorited and they were so much cheaper. Mine is $189, including shipping, its 100% Australian merino, super high end yarn, fingering weight. Takes me a week to make, I'm guessing 15-17 hours. So a fair price I feel like. As I looked closer at the other shawls that were favorited from other shops, they weren't as nice yarn, they were heavier weight yarn, and they didn't look as quality.
So I think that's another key, have super quality items. I've also redone a lot my descriptions after watching May's videos. Emphazing the luxury-ness of my high end items. Really trying to sell my stuff, in a professional pleasant way. I mean I'm still not getting paid much per hour on those shawls after you subtract off yarn, and etsy expenses. My husband said to just ignore the cheapo stuff, and keep doing what I'm doing. I've increased my revenue 6 times so far this year over last. Really working on consistent (high quality listings) and instagram the last year or two have been other key things to do.
@@laurenbeckerle7977 I'm thinking that those specialty items would do well in a fair or in person, maybe at a store where they showcase local artisans? I don't feel confident that I could support myself fully with simple more reasonably priced items that take 1 to 3 hours even. I personally wouldn't attempt to make anything to sell that is that nice as you describe only online. It also takes so much time, it's difficult to price that and get many repeat sales. I might be wrong about that. Pattern editing is something I can do so, if you do want to publish I can help with that! :) Patterns are hard, very saturated and hard to get noticed from my experience.
@@Nina5484 Oh yes I do normally do craft fairs each year around the South SF Bay Area. But this year there's no events. Last January I came up with my plan for fairs, was going to try to do San Jose Made, the big one down here in the South Bay but nothing happened this year because of covid. This year, with just etsy, I'm about at my gross for last year with etsy and fairs. So I feel like I should be proud and thankful for that. I have improved my etsy sales a lot. Woulda been nice to have fairs too tho!
Thank you for the tips
You're so welcome! Thank you so much for watching!! ❤️
Crochet is Good hobby to pick up for the winter!
And are we getting close to seeing you making those puppets next? 😊😀😁lol
If only I had those skills!
I appreciate your videos so much! However, I'm from a 3rd world country... It's hard for me to apply most of your tips and advice with my work. But I could always exchange your 1st world prices/wages with our 3rd world ones lmao
I'm sorry to hear that, Netti. Would you be able to sell products to the US?
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Love this video. I was wondering when I really start my business, can I also sell hooks, yarn, etc., and if so, how or where do I buy them and when do I need to get a business license?
Yes, lots of people sell supplies! This video on some of the legalities might help you! th-cam.com/video/DmyTnvth2ps/w-d-xo.html
Perfect video for what I'm going through right :)))))
I'm so glad you found it!
Can you do a video on some policies you can make when starting a small crochet business please.
I'll put it on my list of suggestions, but here's an article that you might find really helpful: www.createandthrive.com/handmade-shop-policies-what-you-must-include-etsy-specific-guidance-included
Hey, May you please make a video on how to put price tags on Instagram posts? It has been very difficult for me
Thank you for the suggestion, Caren!
@@CreativeHiveCo No problem! 😌 that would be really helpful because I have had trouble for a while
Hi Caren. Be sure that you have already converted your instagram to a "business" profile. Then, all you have to do is set up a Facebook business page > create a Facebook catalogue of your products > link it to your instagram. Once instagram approves your FB shop and catalogue, you can link the items just like you would tag a friend's instagram profile only instead, you would tag your "product" from your catalogue. Hope this helps! Happy making! 😊🌸
I'm Crocheting my Wallets as we speak.
That's awesome! ❤️
@@CreativeHiveCo Thank you!
I was thinking about starting up my own Etsy and I was wondering if I wanted to focus on making food/animal plushies, when I sell them do I have to give credit to the person who came up with the pattern? Say I watched a tutorial on TH-cam and made a cute pig plushie and decided to sell it on my Etsy. Would I have to credit the TH-cam channel, if so how would I credit them on my Etsy?
Hi Lupe! I think it's best to ask permission from the designer/pattern maker if it's okay to use his/her pattern for your products and it always wouldn't hurt giving credit to where credit is due. You can also check out the links below for some reference. All the best!! ❤️❤️
www.hookedbykati.com/selling-items-someone-elses-pattern/
crochetpreneur.com/sell-crochet-items-someone-elses-pattern/
I am making dishcloths and thinking of selling them what should I get for them? They do not take long at all To make. I would appreciate some help, thank you so much in advance.
Hi Natalie! If it'll help, you can check out my blog post about starting a crochet product business: www.creativehiveco.com/how-to-start-a-crochet-product-business/#more-12799 Hope that helps! I wish you and your business all the best!! ❤️❤️
Some people sell crochet patterns but then also show the complete process on their youtube channel. How do they make money if people can get the same thing for free from youtube? Or how do they guarantee their pattern won't be shared online or posted by someone else?
I suppose that not everyone who purchases the pattern is watching them on TH-cam, or those who do may still want the written instructions as some people need to see the words in front of them. You can't really ever guarantee that your work won't be shared. You can add a disclaimer to it but once it's out there you are taking that risk.
@@CreativeHiveCo Oh, I see. Thank you!
I think it's technically more the customer is paying for a nicely presented PDF pattern they can print out rather that actually paying for the pattern. Also if the seller includes a link to the video pattern in their product description it could actually be a good tactic to drive traffic to the TH-cam channel.
@@CoffeeandCrochet ahaa, yeah that's true about youtube traffic. Thanks! :)
Even though it’s been a year, I wanted to add; they might be getting most of their money from other sellers. There have been several times where I have made stuffed animals from the video patterns and then bought the PDF because it wastes so much time to sit there and endure a 2 hour video when you have to make loads of them. Especially if the project takes less than that to actually make.
Quinceañera (keen-se-nyeh-rah) 🌹
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One thing I'm worried about is like if you have like a hundred items that people want and you need to get it done quickly but it might take weeks to do because of time. Like it might take two days for one item, might be an hour for another. I'm more worried abt time lol
The way around this is either to only sell things that you already have made and don't offer pre-orders, or you can just take pre-orders for a certain number of spots, like, I will be making 10 of these hats and they will be ready to ship in 3 weeks.
@@CreativeHiveCo ty for the advice!
What to do if your "competition" are resellers of refugee camp/sweatshop items? I'm talking items sold for less than $15 with free shipping?
I try to make a profit, but my real prices should be 50% higher than what you would say are for wholesale, and I am the highest priced Etsy seller in my niche.
You have to try and set yourself apart from those other sellers who are underpricing. Customers who are buying those cheaper items are not your target market.
Yes I make and sell handmade crochet hats from preemies to adults and styles are animals Characters and regular. Now I only charge $15 without earflaps and $20 with earflaps now would you think that is a reasonable price for the hats?
Hi Renee! I suggest conducting a market research on how much similar products are sold for. I don't suggest doing this research on Etsy as most sellers tend to underprice their products there due to competition. In pricing your products, make sure that you're not underpricing your items and that you're still making profits.
@@CreativeHiveCo where do I go to fine the market research people
Google is a good place to start your research.
I am making amigurumi and I’ve been making a lot of it lately, so I’ve decided to sell it. My mom wants me to sell it for only $10 though and it’s a giant penguin and it takes me hours to make! I don’t know what to do, and I’m honestly thinking about just giving up on even selling it, I don’t think $10 is worth it at all!
Hi Lucas! You got this! You can check out my video here about pricing your handmade products: th-cam.com/video/H3r9M3QhnNQ/w-d-xo.html
If you want to download a free copy of my Online Pricing Calculator, you can check it out here: www.creativehiveco.com/pricing-handmade-items-guide/
Please let me know if you have any further questions! 😊
@@CreativeHiveCo I have watched that video and been thinking about it all day, I’m gonna push and start at at least $20. This penguin is really big and takes quite a while to make, everyone I know agrees that ten dollars is outrageously low lol and I decided I’ll start at twenty and I may even go up past that eventually, I think my product that I put so much time and effort into is definitely worth more than $10.
Trust your gut, Lucas!! You got this!! ❤️
Hi, I'm a crocheter..I sell crochet products but not finished product..I only crochet and give it to clients. And they bind, put zip or any hanging.. now I always stuck when it comes to charge only labour charges..plz help. How to charge only labour charges for crochet products. Thanks
Do they provide you with the material as well? Your labor charges should be what you want to make per hour or per piece.
@@CreativeHiveCo yes they provide me with material.
@@CreativeHiveCo which option will be best for profit.. per piece or per hour??
Because crochet is time intensive, I would say per hour.
Keep in mind manufacturers may be less inclined to pay piece work by hour. Especially if you work from home as it's hard to know if you are taking breaks or crocheting slower or faster that day. So, another good option for crocheter is to charge work iyardage. Let me know if you need help on how to calculate that. 😊🌸
I have a question. What if my competitors have low prices. Should we just f it and aim for high paying customers?
Hi Sarah! This blog post of mine can give you some answers: www.creativehiveco.com/the-5-worst-handmade-product-pricing-mistakes/ Feel free to check it out! 😊
@@CreativeHiveCo Thank you 😘😘
I want to have a crochet plush business
Awesome! You should go for it!
@@CreativeHiveCo i can't do that since i have school
I want to sell my crochet items so what you are saying that in stead of adding 3 hours to my formula I can say one hour and add the value some where else,please forgive me if its repetitive.
Yes, you've got that right!
In indonesia, crocheted products like a 40cm diameter tablecloth costs around 1.5 us dollars... That's what makes me insecure about my pricing and conflicted about whether i should trust my instincts when pricing, or be realistic and price my crochet stuffs in standard competitor's price.... I wanna die 💀💀💀💀💀
Hi! I have a video here on pricing your handmade products correctly that can be helpful for you: th-cam.com/video/H3r9M3QhnNQ/w-d-xo.html
You can also check out my blog here for a copy of my free Online Pricing Calculator: www.creativehiveco.com/pricing-handmade-items-guide/
Good luck! Let me know if you have any questions! ❤️
Crochet plush business
Definitely an option!
I Wonder if it can be succesesful?
I would like to sell hand crocheted doilies and tablecloths and names.
Awesome! Go for it, Betty! Good luck!! ❤️
I want to sell my crotchet product plz help me for selling
Hi Asadraza! Feel free to check out my blog here for some guide: www.creativehiveco.com/how-to-start-a-crochet-product-business/ Good luck! You got this! ❤️
Thank you very much ,great information. Just please no fur pom poms,it's 2020 let's leave innocent animal lives out of fashion and other nonsense 🙏
Thanks, Jelena! I think most of the fur pompoms that are used are fake nowadays, and I don't even think most people correlate it with animal fur.
😭😭😭😭real fur pom pom? Really?
Just an example of how someone might go higher end.
I'm sorry but 5 times the whole sale is not going to work unless you have a big following. x 1.5 to 2.0 seem to be the normal amount most videos say.
Hi Jennifer! Thank you so much for watching! ❤️ What I mentioned in the video (timestamp 0:42 to 1:05) is that you multiply your original cost to 2 to get the wholesale price and multiply again by 2 to get your final retail price.
Real fur pom poms? Girl!!!! Seriously? Everytime I hear real fur pom poms I can't stop thinking of all those rabbits and other small animals that are killed and skinned alive for someone to have a real fur pompom on top of his hat or as a key chain. Don't promote real fur anything, there are so many options for great looking items that don't have to be cruel.
Thank you so much for your comment and for pointing this out! I don't support animal cruelty myself by any means!