Pricing Handmade: An Inside Look

I have been asked over the years where on earth I came up with my prices.  Some questions come from other crafters and sellers, but mainly it is customers and potential customers that ask this question.  Some ask from the point of view that my prices are too low; others think they are too high.  This is my attempt to present my answer to these questions in a way that is easily understood by all.

First off there is this ‘formula’ that hand crafters are supposed to use that goes something like this:

Materials + Labor + Expenses + Profit = Wholesale Price

Wholesale Price x 2 = Retail Price

There are a slew of things that can be factored into labor, materials and expenses and I am not here to break that down for anyone, as that would be a whole different post in and of itself.  For seller’s this is the short answer and there are many other articles out there that can help you figure out what you should be paying yourself, what expenses to include and exactly which materials to count and maybe in some cases not count.

For my example I will use two sets of dishcloths that I currently have listed in my Etsy shop.  A set of two green dishcloths and a set of two white dishcloths.

           

For all intents and purposes both of these sets have TWO solid color dishcloths, but the price is different.  The green set is $7.00 and the white set is $7.50.  WHY?  They are both made of cotton yarn, and the yarn cost is the same per skein (ball).  So the answer to why the price difference is:  The stitch pattern I used for the green set takes less yarn and less time to make. 

So why do I make dishcloths using two different stitch patterns and offer both??  People like both, it’s that simple.  Some prefer the thinner smoother texture of the green ones, while others prefer the nubby thicker texture of the white ones.  Is one better than the other?  The answer to that is:  it depends on the person using them. 

Now let’s move on to the other questions I’ve been asked about pricing, still using these dishcloths as the example.

Why do you charge that much for just two of them, I can buy 12 washcloths at Walmart for less than $5.00?  My response to that question is:  The ones I make are thicker and last longer.  They are a better quality and in the long run you will have saved money.  The thing I usually do not say unless really pressed is that it takes me about 45 minutes to an hour to make two washcloths, I am not a factory nor am I a machine.  I prefer to provide a quality product and can not, more importantly will not, compete with large chain-store pricing.

Some of those people that have pushed me, and that have gotten that response feel that I am being rude and have said so.  I don’t feel that it is rude for me to answer the question as honestly as I can.  I would never ask my hair stylist to dye my hair for $8.00 because I can go to the store and get hair dye for that price.

And finally, for those that think my prices are too low.  Yes, yes I have been told several times (more than they are too high) that my prices are too low; by other crocheters and potential customers alike.  I have been asked if it is because I either

• buy my yarn wholesale,
• buy materials that are cheap or substandard or
• crochet lightening fast. 

I do not buy my yarn wholesale, nor do I buy cheap quality yarns; but I do crochet faster than most.  But, the main reason I set my prices where I do is because I do not pay myself the $20 an hour that someone of my skill level would earn in the job force, and I will get to that in a moment.

The main reason I do not buy my yarns wholesale is that I like to look at and feel every single skein (ball) of yarn before I buy.  I will not buy yarn that is not dyed evenly, or that is not evenly textured; I consider these deficiencies in a skein of yarn to be substandard and the yarn unusable.  I will also not buy any yarn that I find to be scratchy or rough.  The quality of the yarns I use does affect the overall price of the items I make.

Now, let’s talk about how much I pay myself.  This is a sticky subject for many.  I personally do not have a set hourly rate that I pay myself, but I can assure you it is no where near the industry standard of $20 an hour or more that hand crafters are supposed to be paid.  Why?

It is not because I do not value my work, nor is it because I do not produce quality items made with quality materials.  It mainly has to do with the fact that I want to make products that most people can easily afford to buy.  Some stitch patterns are more difficult, require more time and concentration than others.  That being the case is why I pay myself at different hourly rates for different projects and project types. 

Using the formula above and the green dishcloths above, if I paid myself $20/hour to make those the price would start at $15 and go up from there to include the materials, expenses and a profit; then multiply that by two to get the retail price.  That would mean that I’d be asking more than $35 for a set of two dishcloths and there is just no way in this world that I can wrap my mind around asking for that much for two dishcloths unless they wash the dishes by themselves!

With all that I’ve said already I will wrap this post up with this…

I set my prices in such a way that most people should be able to afford my items without going broke to do so.  If I use the formula above and end up with a price that is ridiculously high, I lower it.  If I use the formula above and come up with a price that is ridiculously low (which almost never happens lol) then I re-do my math.

Handmade items take a lot of time to design and make, and the experience to make a product that does what it is intended to do, but this is not my get rich quick scheme.  My prices are higher than some and lower than some, but I feel they are fair for most.

When buying handmade there are a few things to look for in pricing to help you make a good choice as to who’s items to buy.  I hope that my explanations here will help you make your choices in the future!

I’d love to hear your thoughts, comments and questions on this subject!

Handmade vs Homemade

I recently was involved in a discussion about the perception people have of handmade items.  Some people recognize the time, quality, individuality and uniqueness of handmade items and artwork; while others apparently think it means cheap homemade junk. 

Far too often I see the words handmade and homemade being used synonymously. So what really is the difference between handmade and homemade? Homemade refers to an item that is made at home, while handmade refers to an item that is made by hand. Many items that are homemade are by nature also handmade since most home crafters do not have the machinery to produce the item in any way other than by hand.  Handmade items are simply just that; made by hand.  However, handmade items are not always made in a home, there are factories where many people work making things by hand without the aid of machinery.

There was a time in this country when most women, and some men, made all their clothing, bed coverings and sheets, dish towels and more by hand at home.  This wasn’t done because they had all the time in the world to sit around making things for a hobby.  Most of the people that wore handmade items, did so because they couldn’t afford the store bought things, thus having to make their own at home.

Many people in my generation grew up with a grandmother or two that fell into that category of having to make every stitch of clothing their kids wore.  As their kids got older and moved away they could then turn to making nicer things for the home, and even though the items moved from being a necessity to being a decoration they still carried that ‘homemade’ connotation.

An item classified as handmade often carries with it the association of an item that is carefully hand crafted by an artisan with such care that its quality and style surpasses a machine made item of the same type.  While an item classified as homemade usually brings to mind amateur, low quality work and materials. 

This way of thinking was brought on, like I mentioned above, back when people that had very little money had to make their things at home.  It didn’t mean that their workmanship was always of poor quality, but that maybe the materials they could afford were of a lessor quality than store bought items.

I have been crocheting for over 30 years, I learned my very first stitches at the age of 7 and for the next two years each of my grandmothers worked very hard teaching me.  Not only were they teaching me stitches, but they also taught me how to choose my yarns and how to design patterns, while I taught them patience.  Neither of them taught me to read crochet patterns and for many years I just made things up as I went along.

My grandmothers did not teach me a sub-standard way to prevent getting cold in the winter by making a blanket the cheapest, fastest way possible.  They both told me how when their kids were growing up they had to make what they could out of whatever material they could get, and both taught me to never slack on quality or to rush through a project.  They told me I was lucky enough to not have to; so do it right and make all my projects with quality stitches and materials and to make each one as if it were my masterpiece.

Although I personally hand make each of my items at home they are not cheaply made with poor quality yarns.  Each item I make has all my years of experience in the art form of crochet itself, plus my years of experience in working with fibers and yarns, designing various items and the perfection that I hold myself to.  My grandmothers would have it no other way!

Because of all the work I’ve put into learning my craft, learning to choose the best materials and the best stitches to work with, I do get a little snobby when someone looks at my work and describes it as ‘just homemade’.  It is the perception that the word homemade brings with it that raises my hackles.

In the course of the discussion that prompted this post, another woman stated that she has been told things like “I could just get my grandma to make that for a whole lot less money than you want for it”.  While that is true in so many cases with things that are handmade, the person making a statement like that has no idea of the time, effort, energy and love that their grandma will put into each and every stitch of the item.  When a person buys a handmade item they need to think about the time spent in making that item and the time the person making it has spent learning to produce an item that far surpasses the quality of anything that can be made by machine.

The next time you are browsing handmade items or have been gifted an item made by someone by hand… think to yourself about the difference between the perception of handmade quality and the word homemade.  Appreciate it!

Sneak Peek

Here is a peek at some new fall items coming soon to my Etsy Shop!

 

     Purple Ear Warmers

Tan Ear Warmers

Turquoise Ear Warmers

White Wrap Scarf

Purple Wrap Scarf

Pink Beanie Skullcap

Grey Beanie Skullcap

Dark Blue Beanie Skullcap

Dark Blue Beanie Skullcap worn as a beret

Pink Beanie Skullcap with Black Stripe

Brown Beanie Skullcap

 

The beanie skullcaps can be worn in a variety of styles, and are one size fits most… ranging from child to adult.  I have several colors of the beanie skullcaps already done and these can be ordered in almost any color! 

I have a few of the ear warmers made in other colors as well, the ear warmers are adjustable and can be ordered in many colors.

I’m working on more wrap scarves and only have the white and purple ones finished as of now.  These can be ordered in various colors.

I hope you have enjoyed this sneak peek as to what is coming for fall!!

Off the Hook: Hat Donation

So, a friend and I were talking about a month ago and she mentioned that she was making crochet scarves for a mission trip some members of her church are taking to Israel.  I asked why they were taking scarves with them and was really confused about the whole thing until she said they were visiting an orphanage while there.  So, me being me, I opened my big mouth and said HEY why don’t I make hats to send… this without finding out when they are going exactly or how many kids are in need LOL 

After much talking about this and looking up what the current fashion trends are, I then decided that I could make hats to MATCH the scarves she is making.  That set us into about 3 days of looking for yarn and coordinated yarn shopping (that spanned two states), which was totally fun! 

We decided on Caron Simply Soft yarn, because it is warm and soft and not too bulky.

Although, I dare say neither of us needed more yarn in our stash    

Just home from shopping and I was so excited to get started I made this hat right away.

Now a few weeks later I have about 20 hats done, not as many as I had hoped but I am pacing myself.  I found out I don’t have the hats mailed out to her until about the middle of October! 

Here are a few of the ones I have done so far.

I think I will be making some of these beanie style hats for my Etsy Shop too.  They would make great gifts and stocking stuffers for Christmas!

Off the Hook: Boot Cuffs

I decided I wanted to crochet some boot cuffs, since for the first time in years I am living in an area that actually has winter cold enough to wear boots.  I searched around online looking for patterns, and of course like always… didn’t find anything that really appealed to what I wanted. 
I wanted a simple look, that was tight enough to stay put but yet bulky enough to keep my leg warm where the top of the boot is (I have bird legs so there is always a gap there that gets filled with snow and cold air lol).
Here’s what I came up with on my first try.  I think they will do and I also think this is a concept I’m going to be trying in various textures and patterns!
 
I made this pair with a little Lion Brand thin Chenille yarn that I had in my stash.  The color is sage.  I think this is a discontinued yarn, but I’m going to look for some more in other colors because the texture of it worked out great for these boot cuffs!

Once I get more of these made I will be adding them to my Etsy Shop… these can be custom ordered as well, just let me know what color you would like.

Yarn Review: Bernat Pipsqueak

I wrote this yarn review back in August as a note on our Facebook Page.  You can view the afghan made with this yarn here:  Crocheted Candy Girl Afghan

I just finished a baby/toddler throw using Bernat Pipsqueak yarn.  This yarn comes in 100g/3.5 oz skeins and is 100% polyester.  Pipsqueak is a bulky yarn requiring larger hooks/needles.  The first thing I enjoyed about working with this yarn is that it is softer than any other yarn I've ever seen!  The second thing I immediately noticed is how quickly this yarn crochets up.  The finished afghan was a good weight and warm, it didn't take long to make and it is soft enough to not irritate even the most delicate skin.
If you are a yarn crafter and have not tried this yarn you should!  I found the Bernat Pipsqueak at Walmart.  After looking for it online I learned it is a rather new yarn with a limited color range right now.  But given the softness and ease of working with it I fully expect them to incorporate more colors into the line. 
Bernat Pipsqueak

Yarn Review: Bernat Pipsqueak