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When you start a crochet business, one of the challenges one faces is how to price items. It is not a business until you are selling products and bringing in a profit. It is important to know how to price of your products and have at least a method in mind which you use to price your products. In some cases especially if it’s a commission, it may not be possible to know the price off hand but having a formula in mind which you can use will ease the pricing anxiety you may have. Get the editable template for a price list which is included in the Crochet Business Planner available here.
There are three methods that I have used to decide the price of your products. Although some methods are favored above others, there is no right or wrong way. Just make sure that you are not making a loss by under-pricing. Prices can also be influenced by location, demand, season, product popularity and may more; so you will need to do some market research of the going rate of crochet for your target market.
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Price of Yarn x3
This is easy and you do not have to do much calculation. Some add 10 – 20% to cover other expenses. The pro is that it’s easy to calculate. The cons are may not provide accurate pricing if yarn is cheap or expensive. It also becomes a challenge if when working on a commission where a customer has provided their own yarn and you are not familiar with the pricing of the particular yarn.
Rate per hour x 1.5 or 2
This is the most accurate method as a crafter you correctly compensated for the time spent on the project. This is when you record how long it takes to complete a project and then multiply by 1.5 or 2 depending of the complexity of the project. You need to determine your rate per hour which varies from person to person. A starting point would be your target income per month and divide by 21. If you are not sure of your rate, start with the minimum wage rate per hour. The pro is you are going to be correctly compensated for the time you have put in. The con is this works well for faster crocheters, while those who crochet slower may price themselves out of the market.
Charging per metre/yard of yarn
I recently just learnt about this, where you price based on metres of yarn worked. You can come up with a rate per metre so say for example 50 cents per metre and if you use 1000m then your product price will be R500. This works best for products where you have a wide range of sizes. The pro is you will be properly compensated for the work done; the con is you will always have to know the exact size before you can give a price which may discourage some buyers.
In conclusion, making a handmade product is tedious and time consuming, and you need to be compensated correctly for the time and effort. There is also no industry standard, therefore choose a method that works well for you and your business. Which also means you do not have to stick to one method; you can use all of them depending on the project.
Do you use and of these methods to price your crochet products, let me know in the comments section.
Get your Crochet Business Planner here, instant download, with 18 filable templates and 3 three editable templates.
Get the free pdf download of this article here.
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