You have made your first crochet project. You may have made some crochet items for family and friends. You received encouraging comments and you really like this crochet thing. So you are thinking, "Hey, maybe I can sell my hats and scarves and make some extra cash." Your next thought is probably, "How do I price my crochet projects?"
Some things to consider:
Labor Cost: How long does it take you to make the item? How much can you reasonably charge per hour? There are a couple situations where charging solely by hour is a disadvantage. For example, crocheting a blanket takes hours upon hours. Charging by hour for this particular product can become expensive for the customer! Also, if you crochet on the slow side, you should consider another method of pricing. Labor cost is only part of the equation.
Material Cost: How many items can you make out of the supplies bought? Do you plan on being a low end, high end or middle of the road brand? If you plan on being high end, the cost of materials is going to be higher, which needs to be reflected in your product's price.
Overhead Cost: Venue fees, marketing fees, office fees, machinery costs, building bills, it all adds up! These need to be included in the cost of the product.
Profit: What kind of profit do you want to make? Work backward; think of your end result. What do you want your yearly income to be? How many hours do you want to work? How much time do you want to spend on production and administration tasks? Don't forget your time shopping for supplies and marketing is just as important as time spent making the product!
I hope this post acts as a springboard to get you brainstorming on how to price your crochet project. Where you are selling your product also needs to be taken into consideration. More on that in another post.
Some things to consider:
Labor Cost: How long does it take you to make the item? How much can you reasonably charge per hour? There are a couple situations where charging solely by hour is a disadvantage. For example, crocheting a blanket takes hours upon hours. Charging by hour for this particular product can become expensive for the customer! Also, if you crochet on the slow side, you should consider another method of pricing. Labor cost is only part of the equation.
Material Cost: How many items can you make out of the supplies bought? Do you plan on being a low end, high end or middle of the road brand? If you plan on being high end, the cost of materials is going to be higher, which needs to be reflected in your product's price.
Overhead Cost: Venue fees, marketing fees, office fees, machinery costs, building bills, it all adds up! These need to be included in the cost of the product.
Profit: What kind of profit do you want to make? Work backward; think of your end result. What do you want your yearly income to be? How many hours do you want to work? How much time do you want to spend on production and administration tasks? Don't forget your time shopping for supplies and marketing is just as important as time spent making the product!
I hope this post acts as a springboard to get you brainstorming on how to price your crochet project. Where you are selling your product also needs to be taken into consideration. More on that in another post.
Shop LiLphanie's Line for fun holiday hats and accessories.