It really is the hardest thing to put a price on your handmade, designed by you, crochet item when you first start selling. You may feel it is not good enough... or that it is better than others. You may research loads of similar items only to find such discrepancies in price from those that sell at such a low price that you wonder why they are bothering, but it also makes yours look over priced, to those selling blankets for hundreds of pounds!
When I started out I read that the formula was 2.5 x what it cost you to make plus your time... you need a sense of humour for this!
Well ok lets try it..... e.g lets price the 'Flower Garden Blanket'
I recently sold this and when I came to wrap it up I had one of those moments we all probably have of thinking 'Ooooh will they think its worth the money!' Slap my wrist... of course it is!
The yarn used was Stylecraft Special DK cream x 2, wisteria, meadow, violet, parchment and clematis.
The pattern for the square is Attic24's Summer Garden Granny square
48 granny squares... take approx 10 mins each to make that's including sewing in ends... 8 hours.
Joining... approx half an hour each row of six squares x 8 rows (7 joining rows)... that's 3.5 hrs.
Border... approx 45 mins ish each row x 5 =2.25hrs
That's 13.75 hours to make... now the yarn was £1.65 x 7 balls = £11.55 plus postage at £2 95... £14.50 let's have a laugh and pay myself £5/hr labour x 2.5 (the magic formula) =£106.25...umm!
I have seen it recommended on some forums that it should be x3 but I am still using the 2.5 at the moment.
I have never calculated a wage for me as it just makes the cost of the blankets too high. I know its wrong but I usually x the cost of the yarn by 2.5 (£36.25) and round it up to give me the retail price.
If I did pay myself a decent wage lets see...
Approx 14 hours labour
If I gave myself the minimum wage which from October 1st 2014 will be £6.50 for over 21s ( I'm over 21!) that's £91 plus £14.50 x 2.5 = so my blanket could potentially now cost £127.25!
No one in their right mind would pay that for a 100x80 cms acrylic blanket unless it had been made out of the finest hand spun yarn by garden faeries riding on unicorns!
Crafts Calculator is a useful tool I have just discovered and that estimates my blanket should sell at £93.
That's approx £5.60 an hour ... but would anyone pay £93?
(£93- £14.50 divided by 14hrs)
I haven't taken into account Etsy, Folksy or Paypal fees.
Now I sell this blanket at £40 after researching similar in the market. That's about £20 a blanket profit without accounting for my time! £20 for a weeks' work...
Another minefield I have just discovered, recently when approached by a shop to stock my blankets is the wholesale or consignment price. Wholesale price is usually 50% of your retail price or if the shop takes a percentage (consignment) the profit margins are non existent.
So we are earning nothing on the actual time and skill it takes to make a unique handmade possibly heirloom blanket!
I had a bit of an awakening writing this blog as I hadn't realised how much work was involved for so little money but I am addicted and need a release for the addiction!
Its a good job I'm not expecting to give up the day job and that I love designing and creating new crochet projects so I am grateful to be able to sell them or I would have no room left at home!
I would also like to apologise in advance for any discrepancies in the maths as I am absolute pants at anything mathematical and thank goodness for calculators!
xxx Eirawen
