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Tips for Pricing Handmade Items to {Actually} Make Money

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Are you crafty? Do you sell your wares? Gearing up for the gifting season, us crafters are scrambling to finish up our own projects before taking and completing orders; hopefully earning a little extra cash in the process.  If you’re anything like me, that is.  My orders list is only growing and I think I need to take the next two weeks off just to get it all completed.  It’s definitely a love/hate relationship.

If you are looking to sell your handmade goods, it is inevitable that you second guess yourself on pricing. What is enough, what is too much?  Do not undervalue your work, skill OR your time. If your prospective buyer can not find the value in your item, move on honey because someone else will.

Crochet (my preferred craft) takes time to learn and time to master.  It is a skill that other people do not have. If they did, they would be crocheting their own gifts, now wouldn’t they?

Pricing handmade items should not be a mystery or a guarded secret.  Listed below are the most common questions I get regarding pricing.  Remember that buyers that understand the cost of both the materials and your time will pay you what the item is worth.

Tips for Pricing Handmade Items to {Actually} Make Money

Tips for Pricing Handmade Items to {Actually} Make Money 

I have heard all kinds of formulas for pricing your handmade items, but I’ll tell you what is easiest and what works for me. I set my price at 3x the cost of materials. (sometimes 2x depending on difficulty of the pattern/project) I use the “regular” price, even if I used a coupon and it was on sale. For example, if I needed two skeins of yarn for a particular scarf, and the yarn is $5 regular price, that is $10 in materials. I would charge $30 for the scarf.

Common questions I get/comments I hear about pricing handmade items:

1. I enjoy (insert your craft here) so I don’t need to earn a lot from it.  

I enjoy crocheting myself, but if I get twenty orders for the same hat, I can guarantee you that by the time I finish #6 I’m going to hate that freakin’ hat with 14 more to go. Charge what it is worth because if you don’t you’ll hate yourself with every single stitch you make. Been there, baby. If you’re making them to make them and the item does not sell well, you could always offer a “sale” but it is hard to raise your prices if you start too low.

2. I don’t think people are going to pay that much.

If people don’t value your work, that is not your problem; it is theirs. If you find that you’re not receiving many orders, try branching out, post for-hire listings in virtual yard sale groups or post more on your Etsy page or on your personal Facebook page.

3. Always request half payment up front.

I can not even begin to tell you how many times I’ve had buyers back out on me, or “forget” that they ordered the week before. This is exactly why I will not go buy the yarn and supplies needed for a project unless: I implicitly trust the person (ie: my mom, lol!) OR I have received half-payment up front. Collect the other half when they pick up/you ship their order. This way if they DO back out or “forget”, you’re not out the cost of supplies.

4. I made it forever ago, so I’ll discount it to get rid of it. 

When you made the item is not the point. You made it, you bought the supplies for it, you sell it for what it is worth. Period. If a customer’s first experience with you involves you seriously undervaluing your work, they will have sticker shock the next item they purchase from you (at what the item is actually worth!). You are only hurting future sales if you do not charge what the item is worth – no matter when you made it.

5. I feel like I’m ripping people off if I charge what I think it’s worth.

This is a skill that your buyer does not have. They are paying for your skill as well as the item. If they could do it themselves, they would (unless they literally do not have the time).  Think of it as: I have a toothache, and I do not know how to fill the cavity myself (or pull it). Therefore, I go to the dentist and I pay the dentist for their time and work. This is not even a question when it comes to a professional; so why are you any different? It took time to learn your skill as well.

6. It didn’t take long to create this item, so I’m not going to charge much for it.

All this means is that you’re getting better at your craft, not that the value is any lower because it took you less time.  Again, I go off of how much the materials cost me, regular price.  I can crochet a large blanket with mega bulky yarn in a few hours, but if the yarn cost me $50 to purchase (mega bulky is expensive, y’all, and you don’t get much!) I will absolutely charge $150 for the blanket. Will I sell one? Maybe, maybe not. But if I do get commissioned for one, I’ve got the $75 up front to cover the yarn cost. (see #3 above)

7. I already had the materials.

So? It doesn’t matter when you bought the yarn, or where you got it (if it was gifted to you etc).  It is the cost it would take to replace the item that you need to take into account. If you use this yarn now, you’ll need to spend $15 to replace that yarn tomorrow. Make sense?

By staying consistent with your pricing, your repeat customers will be just that: repeat customers.

Did I miss anything? Any other tips you’d like to share? I’m ready! Just leave them in the comments and we’ll continue the discussion.

Tips for Pricing Handmade Items to {Actually} Make Money

See my favorite yarn hacks and crochet tips before you go:

Use Industrial Clips for Yarn Bobbins in Crochet and Knitting
How to Create a Straight Seam When Crocheting in the Round
16 Ways to Save at Michaels
How to Weave in Yarn Ends {So They Don’t Come Out}
How to Soften Economical or Scratchy Yarn
How to Remove Wax from Yarn
9 Tips for Traveling with Crochet
Why Size Matters in Crocheting and Knitting


Comments

  1. Desiree says

    Hi. What if you only use half a roll of yarn do you consider the cost as the full price of the yarn or half price since you only used half the roll?
    Reply

  2. Elizabeth Moody says

    I got a request for crochet dog booties, the buyer hasn’t been able to find any small enough for her teacup chihuahua. I found a pattern and was going to add lining inside and non slip on the bottom. What’s the best idea for pricing?
    Reply

  3. Cynthia S says

    Hi Ashley, Thank you for this, and all of your other valuable tips! I have been following you for a few years now, and I am still learning from you, thank you! I am trying to get to the point of selling my "projects", but am wondering, would you or anyone else, please share what types of shows are more profitable? Also, do you price your items at this same price, or increase the price to help make up for the cost of the show? I understand that this is for getting started, but working from home has no overhead, as paying to be in a show does. Thanks for any help!
    Reply

  5. Kimberly J Catlin says

    Do i have to put exact cost of yarn as example i make 8 colors yarns and cost per $5 which is $40 dollar or set an price with specific amount of yarn after finish project? I need help!! thank you
    Reply

    • Heart Hook Home says

      Hi Kimberly! I would say it depends on how much of each skein you are actually using...if you are using almost all of those 8 skeins (or even more than half), then absolutely price your piece on $40 in materials. Whereas, if you are using less than half of each skein, then I would maybe price at $20 in materials. Hope this helps.
      Reply

  6. Jessica says

    I definatly makes sense as to how to price now my question is, what if they provide the material? Should they be priced a little lower or not. And if there is left over material should you give it back ?
    Reply

  8. Craft girl says

    Im making crochet socks. Large ones. Does the cost go higher on large then small ones. A d what would you sell your socks for if it didnt long to make and yarn only under 2.00 maybe. 1 pair small or 1 pair large
    Reply

  9. Donna Y says

    If you bought a pattern and made an item to sell, can you add the price of the pattern in with the cost of materials and pass that cost onto the customer?
    Reply

    • Heart Hook Home says

      Hi Donna! For me, it would depend on the situation...if it was a customer request that required the purchase of the pattern, and I didn't think I would use the pattern again, then yes, I probably would pass that cost onto my customer. However, if I bought a pattern for the specific purpose of making and selling, then I wouldn't. Hope this helps!
      Reply

    • Heart Hook Home says

      Hi Lori! I would figure up how much the materials are regular price and times that by 2 instead of 3...so if the wool is normally $10, then I would charge $20 for my time and skill. Hope this helps!
      Reply

  11. Pearl says

    Hi Ashlea, I have followed a lot of your crocheting advice, as well as doing your amazing patterns! My question is this: If I'm commissioned to make a pillow, and already have the yarn, and say it doesn't quite take a full skein, should I multiply 3 times the cost of the full skein? Or do the math and figure out actually how much the exact yardage of yarn used cost and multiply that times three? Thank you for your great blog. Pearl
    Reply

  12. quais says

    Hi there I recently came across ur blog. Your tips are amazing.i recently stepped into this world u can say couple of weeks. Really appreciate if u could help regarding how to manage orders.
    Reply

  14. Jenn says

    This post doesn't factor in the administrative and marketing costs, nor depreciation, nor tax (if applicable). As soon as you start selling things, you have to spend time and effort on these tasks. Keeping track of projects, recording sales, tracking the due date for commissions, finding out if you have to pay tax, figuring out the postage-and-handling costs. Packing your work to mail to clients, finding the right box, labels and such, and actually going to the post office - that's the 'handling' part. I lump these and other similar tasks under 'administration'. Another cost I tend to label 'administrative' (but others would probably not) is the time and effort you spend getting better at your craft. Yes, it's fun to go to a knitters' circle! But (and especially if it's one that requires significant travel) the time and effort and materials you spend doing so can be, and maybe should be, part of your calculated prices. Every time you rent a table for a craft market, every minute you spend constructing and maintaining your website, every minute spent photographing. Time spent going through your books that track sales, and calculating which products sell at which craft market: all of this is marketing. And if you're going to be successful, you do it. Tax is annoying, but you need to make allowance for it. Where I am, if your hobby doesn't earn more than $X, we don't have to declare it. But $X+1 has to be declared, and they do assess the 'higher than $X' amount. One I didn't mention is improving your gear. Buying that lovely magnifier/lamp you've had your eye on. Replacing your hooks to the Clover hooks our hostess here likes. Subscriptions to magazines (and webzines, and pattern libraries...). All of that can be tracked and (if relevant to your laws) used to reduce taxes! Lastly: depreciation. Hooks get lost and break. Yarn bowls, bobbins, magnifying lamps, eventually need to be replaced. If you're someone who likes to laminate patterns, the laminator will break eventually. Everything has a lifespan. Make a guess about the lifespan per days (or hours, or weeks, or years) of use. Divide the replacement cost by the count of days. Round up, not down, and the divided cost to the cost of your product. (Admittedly, it is often less than a cent!) This kind of stuff is called 'overhead'. Your price should be no less than what Ashlei posted in this (wonderful) article, PLUS your overhead. Except that there is a part of marketing that can be pulling buyers to your product by deliberately underpricing some items. If you do that, slightly increase the prices of other items to allow for that marketing cost. Happy (and lucrative) crocheting!
    Reply

      • Amber Collins says

        Maybe all of this is true, but this is the type of information one would learn in business school. If you decide to learn about the complicated processes of pricing, you would learn this as you go and adjust your pricing as your business grows. The rules posted above are for beginners just getting started, who may not even be going to craft shows just yet.
        Reply

  16. Geri says

    I'm glad I found your blog on pricing handmade items. Your formula sounds more logical. I tried another pricing guide and when I entered all the information the results was outrageous. Thanks again for sharing.
    Reply

  17. Fran says

    I truly thankful for the pricing information. It has been years when I sold anything. I gave up on selling what I made. When I made anything it was given as a gift. I also have been trying your foundation stitch. Still working on it. Wish I had some of your ideas when I was younger '20 + years'.
    Reply

    • Ashlea says

      Hi Fran! I'm so glad this helped you. I find that if I loosen up a bit on those foundation rows (even just chaining!) it helps to make the finished project look much cleaner. Thanks for stopping by!
      Reply

  18. Julie Gatesman says

    This is great! Thank you so much for this article!! I still do have that fear that if I charged $150 for a blanket, or $120 for a mermaid blanket, let's say, that nobody would buy it or they'd think that I was being ridiculous. Lol! Or even a hat for $20/25! One day I'm sure I'll get over it, but right now I've been having a hard time trying to figure out pricing and this was perfect!! Thank you!! And btw, I love the PCC! Just finished one for my 18 yo for xmas!!!! Now I want one!!!! Lol!!
    Reply

  19. Annette Specht says

    Hello!!! My mom is making a prayer shawl for a baby blanket . and the customer provided the yarn,,, she is frogging it cuz its too long,,, how much should she charge for it?
    Reply

  20. Sarah says

    I love everything you had to say! I'm trying to venture out into the world of selling my crochet work as an income. It's daunting, but I'm excited to see what I'm capable of doing. What would you charge for products that are small and take much less than a skien of yarn? I don't want to overprice, but my husband says I deserve a good payment for the time I put into what I do. If I make 15 things out of one skien, how can I price it so that I'm not asking too much from my customers?
    Reply

    • Ashlea says

      Hey Sarah! I'm so glad this is helpful! :D For smaller things, like the Aldi quarter keeper keychains I make, I can get 10-12 out of one $5 skein, but I charge $5 each (including the quarter). If the materials are too cheap to use the formula, I charge by how long it takes to make, at what I'd like to earn per hour. Within reason, of course. Hope that helps!
      Reply

  21. Kayleigh says

    I am very glad I came upon this post! I crocheted a very amazing nativity scene for my mother in law and was thinking about making more to try and sell them. The only problem I am having is what to price it at if/when I do get around to making another set. The materials we not bad a bad price at all. But, it took TIME to make them. If I were to use your formula for pricing the set, then I would be neglecting the time I put into it. How to calculate what to price items at that are more "time consuming" than they are for the cost of materials?
    Reply

    • Ashlea says

      Hello! On instances like that, where it takes hours and hours but the materials were cheap, I'll do a dollar amount per hour worked (plus materials) instead. I keep the whole total within reason, of course. Hope that helps!
      Reply

  22. Linda says

    What do you charge when the customer provides the pattern and materials for an item they want crocheted and all you have to do is put in your time and work to make it?
    Reply

  23. Abbey says

    Hopefully this won't sound bad but what I would add is how it actually sometimes hurts and offends the rest of your fellow handmade community when you undercharge for things. I work hard to make my items and I carefully choose higher end yarns ect and sometimes when I go on our local handmade buy sell trade fb page I'll see similar items others have made and they aren't even charging enough to cover supplies let alone their time. If I were to offer my product there my chances of selling anything is slim when customers can get "the same" crocheted hat for $8 from another handmade seller . Am I making sense? I think we as a community of creative people should have pride in what we can do and what we offer! Not devalue it. I would also add that if people are having a hard time selling their items I find it helpful to adjust the yarn (supplies) im using, the colors im offering, and re evaluate if there is a demand for the particular product I'm offering. You can see what's popular and what's selling by visiting other handmade communities online like Etsy for example. anyway great post thanks for writing it! It's helpful and also validating for me.
    Reply

  24. Theresa L says

    Thanks so much for this blog! I was kind of stressing about what to charge someone that asks me to make them something, thinking I ask too much. These points make perfect sense!
    Reply

    • Ashlea says

      I'm glad you like it! I just started this new crochet blog adventure a few months ago, so I'm constantly adding more tips. Glad to have you here :D
      Reply

  25. Alissa says

    How do you handle materials cost increases? Example: "I Love This Yarn" from Hobby Lobby was $1.99 eight years ago and is now $3.99. Or what if a great yarn is discontinued? (I'm not talking about running out of yarn mid-project, I'm asking about offering a product and running out of a supplier.) Example: My local Walmart had an inexpensive, amazingly soft, no-pill acrylic for two years and then the brand disappeared from the face of the earth.
    Reply

    • Ashlea says

      I have not run into that yet, actually. Great point though! I suppose at that point I would up the prices a bit to compensate. Thank you for bringing that up!
      Reply

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