Pricing Your Knitwear with Confidence: A Guide to Valuing Your Craft
There’s something magical about transforming a skein of yarn into a beautiful, handcrafted piece of art. Every stitch holds a bit of your time, creativity, and love. But when it comes to pricing your knitwear, that magic can sometimes turn into uncertainty. How do you put a price on something that’s so much more than just the materials and time? How do you ensure that your work is valued fairly, both by yourself and by others?
In this post, I’m here to help you navigate the process of pricing your knitwear with confidence. I know it can be challenging to set a price that reflects the true worth of your handmade creations, but it’s an essential step in valuing not just your craft, but the entire community of makers. Together, we can ensure that our work is appreciated and that the art of knitting and crochet continues to thrive.
Grab a your favorite beverage, settle in, and let’s explore how you can price your beautiful pieces in a way that honors your skill, time, and passion.
One more thing before we start
If you are second-guessing yourself right now, or if you feel guilty about your current pricing, I just want you to know that I get it. I’ve been there.
When I first started to sell my knitwear, my prices were ridiculous. I was basically paying customers to buy my knits, setting the price just a little above the cost of the material used. It took me a few months and most importantly watching this video (and then reading this article) by Knitatude to realize I needed to re-evaluate my pricing system.
So I want to give a big shoutout to Chantal of Knitatude for pushing me, through her content, to up my prices by sharing her knowledge: thank you!
Understanding the Pricing Formula
Pricing your knitwear or crochet pieces may seem like a daunting task, but with a clear formula, it becomes much more manageable. At its core, pricing is about finding a balance between covering your costs, valuing your time and skills, and ensuring your business is sustainable. Let’s break down the key components of a reliable pricing formula that you can use to confidently set prices for your handmade creations.
Cost of materials: what you put in
Start by calculating the total cost of the materials you’ve used to create your product. This is where you should include the cost of your yarn, but also any other supply you might add to the final product (think pompoms, tags, buttons, etc.). You can also account for any packaging materials if you’re adding them to the final product. It’s essential to be thorough here; every little bit adds up and contributes to the final price.
Note: You don’t need to include your tools (needles, crochet hooks) here, as these will be covered in the overhead portion.
Labor: valuing your time and skills
Next, you need to consider the time you’ve spent on each piece. It’s important to pay yourself a fair hourly wage, reflecting the skill and effort you put into your work. Think about the entire process, from selecting the pattern and materials to the time spent knitting/crocheting, blocking, and finishing your product. You wouldn’t expect other people to work for free, right? So don’t cut yourself short: your time is valuable, and pricing your labor correctly is key to sustaining your passion and craft.
If you’re new to this, you might feel hesitant about charging what your time is truly worth. Remember, knitting and crochet are specialized skills that take years to master. Your experience and the quality of your work deserve recognition. Don’t be afraid to set an hourly rate that reflects this—whether it’s a beginner’s rate or something more experienced, it’s important to honor the time you invest.
If you’re unsure what an appropriate hourly rate could be, start by researching what is the minimum wage for your area, and do not go below that! You can however pay yourself more than this, and I encourage you to do so, but never underpay yourself!
Overhead: keeping your business running
Overhead costs are often overlooked but are crucial to consider. These are the expenses that keep your crafting business running, like tools, workspace, utilities, and even marketing. While they might not be tied directly to a single item, they still affect your overall profitability. A simple way to incorporate overhead into your pricing is to add a small percentage to each piece’s final price. This helps ensure you’re covering all aspects of your business, not just the visible costs.
I like to add about 2$ of overhead to each piece, but you might decide to add a bit more if you feel you have more expenses (rent, website subscription,…) or less if you feel you don’t have many other expenses.
Wholesale rate
The wholesale rate is the price you set when selling your handmade pieces in larger quantities to a retailer or another seller. This price is typically lower than your retail price to allow the buyer to purchase your items in bulk and then resell them at a higher price—usually the recommended retail price—so they can make a profit. Please remember that if you decide to sell in bulk, your business needs to remain sustainable, which means you should add a little profit margin.
Profit margin: ensuring sustainability
Finally, it’s essential to include a profit margin. This is the amount you add on top of your costs and labor to ensure your business is profitable. Profit is not a luxury—it’s a necessity for any business to grow and thrive. It allows you to reinvest in new materials, try out new patterns, and keep your creative momentum going. A common practice is to add a percentage markup, such as 75%, to your total costs, ensuring your business remains sustainable in the long run.
The final formula
To calculate how much you should sell your knits for, you have to calculate your wholesale rate and then add a profit margin (such as 75%, aka multiplying your wholesale rate by 1.75).
Cost of materials + Labor + Overhead = Wholesale rate
Wholesale rate + Profit margin = Retail price
A little example: Let’s say you create a beanie with one skein of yarn that costs 15$, it takes you 2 hours to make it, and you decide to pay yourself 15$/hours. For the sake of simplicity, let’s pretend you don’t have any additional material cost (no pompom, tags, or packaging). Here’s how your beanie should be priced:
15$ (Materials) + 2x15$ (Labor) + 2$ (Overhead)= 47$ (Wholesale rate)
47$ (Wholesale rate) + 47x0.75 (Profit margin) = 82.25 $ (Retail price)
This means you should sell your beanie for 82.25$ when selling it yourself. This is not a high price, it’s a sustainable one.
By understanding and applying this pricing formula, you’ll be able to set prices that not only cover your costs but also reflect the true value of your work. Remember, pricing isn’t just about numbers; it’s about valuing yourself, your skills, and the makers’ community you’re part of. With this approach, you can confidently price your knitwear, knowing that you’re honoring both your craft and your business.
If you’re still feeling unsure about pricing, don’t worry—I’ve got a tool that can help! Keep reading to discover how the Stitch Profit Calculator can make pricing your knitwear a breeze, or click the button below if you’ want to get to this tool ASAP.
Pricing with Confidence
Setting a price for your handmade knitwear or crochet pieces isn’t just about covering costs—it’s about recognizing the true value of your work. This can be one of the hardest steps for many makers, especially when self-doubt creeps in. But remember, your skills, time, and creativity are worth every penny.
Let’s talk about how you can feel more confident in your pricing and why it’s so important to do so.
Embrace your worth and the value of your craft
It’s easy to underestimate the value of your work, especially when you’re surrounded by mass-produced items with low-price tags. But your handmade pieces are unique, crafted with care and attention to detail that simply can’t be replicated by machines. Each item you create carries a part of your story, your skill, and your passion. Embracing this value is the first step toward setting prices that reflect the true worth of your work.
When you price your pieces confidently, you’re not just valuing your time and materials—you’re valuing the artistry that goes into each stitch. Remember, your customers aren’t just buying a product; they’re buying a piece of your creativity and craftsmanship.
Overcoming the fear of overpricing
Many makers worry about setting prices that are too high, fearing that customers won’t pay what their work is worth. However, underpricing can do more harm than good, both to your business and to the broader crafting community. When you undervalue your work, you’re not just shortchanging yourself—you’re contributing to a culture that undervalues handmade goods.
It’s important to recognize that there’s a market for quality, handmade items. People who appreciate the time, effort, and skill that goes into your pieces will be willing to pay for it. By pricing your work fairly, you’re helping to educate customers about the true value of handmade items and setting a standard that supports all makers.
When I first upped my pricing with the formula I told you about before, I was really scared that no one would buy my products. But to my surprise, I was still able to sell them! Maybe my target customers had shifted a bit, but people were still willing to spend their money on my products (and the handcrafted experience that came with them).
The power of community pricing
One of the best ways to feel more confident in your pricing is to know that you’re not alone. When all makers adopt similar pricing strategies, it helps create a unified front that elevates the value of handmade goods. This collective approach can have a powerful impact on the market, making it easier for everyone to charge what their work is truly worth.
By supporting one another in setting fair prices, we can help shift the perception of handmade items from being “just a hobby” to being recognized as a skilled craft that deserves to be compensated accordingly. This not only benefits individual makers but also strengthens the entire crafting community.
Standing firm on your prices
Once you’ve set your prices, it’s important to stand firm. There may be times when customers try to negotiate or question your pricing. In these moments, remember the value of your work and the careful thought you’ve put into your pricing strategy. Standing by your prices not only shows confidence in your work but also helps reinforce the idea that handmade goods are worth what they’re priced at. Some customers may decide that they don’t want to invest in your products, but that’s okay; this simply means they are not your ideal customers. Accept that with grace, because your ideal customer might just be right around the corner.
Become a Pricing Pro: The Stitch Profit Calculator
We talked about a good forumla to price your handmade knitwear or crocheted pieces above, but I know this task can still feel intimidating and have you second guessing yourself over and over again. But don’t worry—I got you covered!
I really want you and your cozy small business to succeed, which is why I created the Stitch Profit Calculator; a tool that will help you streamline the process and boost your confidence in setting prices by taking the guesswork out of pricing. This tool is designed specifically for knitters and crocheters, making it easier than ever to calculate the perfect price for your handmade items. Whether you’re new to selling your crafts or looking to refine your pricing strategy, this tool will be your new best friend. Let me talk to you a bit more about it.
Simple to use for confident pricing
Using the Stitch Profit Calculator is very easy. After downloading it, you will be able to open your Excel or Number file and start adding the information for each product you want to sell. Don’t worry, it’s a very straightforward tool and you’ll be able to use it even if you’re not a numbers person (plus, I’ve included an 11-pages PDF guide and video tutorials for both Excel and Numbers to help you with everything). Here’s a quick glimpse of how this works:
Choose a name for your product, type in the yarn you used (the same product with different yarn might result in a different final price) and the size (if that’s relevant);
Add the cost of one skein of the yarn you used for your product and how many skeins you used; the tool will automatically calculate how much yarn you used for your entire product;
Then add the cost of any other material used, such as pompoms, tags, packaging, etc
Now you’ll have to add how many hours you worked on your product (or the closest estimate of that)
Both the overhead and hourly rates are already inserted, but you will be able to tweak them to meet your needs.
Once you’ve entered all your data, the tool will automatically calculate your final price; the only thing for you left to do is implement this price with confidence.
Both Excel and Numbers files also include:
Final Prices sheet, to give you a quick overview of your Wholesale and Retail prices
Yarn Converter sheet, to easily know how many skeins you used for a project depending on the weight of your final item
Time Converter sheet, to easily convert minutes into hours
By using this tool, you can simplify the pricing process and gain confidence in setting fair, accurate prices for your handmade creations. This small time investment will bring you peace of mind, ensuring that your business remains both sustainable and rewarding in the long run. It’s more than just a calculator—it’s a way to ensure that your prices reflect the true value of your work. By automating the math, this tool allows you to focus on what you love most: creating beautiful pieces that bring joy to others.
If pricing has always been an overwhelming task or if you simply need some help with it, I encourage you to download the Stitch Profit Calculator and give it a try. It’s designed to be as user-friendly as possible, and I’m confident it will make a big difference in how you approach pricing your knitwear or crochet pieces.
Taking this step is not just about finding the right price—it’s about honoring the time, skill, and passion you pour into each piece. So go ahead, download the tool, and start pricing with confidence. Your craft—and your business—deserves it!
Why Fair Pricing is Important
Pricing your handmade pieces isn’t just about covering your costs or making a profit—it’s about sustaining the entire community of makers and ensuring that our crafts are valued for what they truly are: art, skill, and dedication. Let’s explore why fair pricing is so important and how it impacts not just you, but all of us who pour our hearts into our handmade creations.
Elevating the perception of handmade goods
When you price your knitwear or crochet pieces fairly, you’re contributing to a broader movement that seeks to elevate the perception of handmade goods. We live in a world where mass-produced items often overshadow handcrafted ones, leading to a misunderstanding of the true value of what we do. By setting prices that reflect the time, skill, and materials involved, you help educate customers and the public about the worth of handmade items.
Every time a maker underprices their work, it reinforces the misconception that handmade goods should be cheap. Conversely, when we all stand by fair pricing, we help shift the narrative, showing that handcrafted items are not just products—they are pieces of art that deserve to be appreciated and compensated accordingly.
Supporting fellow makers
Fair pricing doesn’t just benefit you; it supports the entire maker community. When all of us adopt similar pricing strategies, we create a unified standard that helps prevent the undercutting of prices and ensures that everyone’s work is valued appropriately. This collective approach makes it easier for each of us to maintain our prices and resist the pressure to lower them.
Think of it this way: when you price your work fairly, you’re not only honoring your own time and effort, but you’re also supporting other makers by helping to establish and maintain fair market values. This solidarity is crucial in fostering a community where everyone can thrive, rather than one where we’re forced to compete on price rather than quality.
Encouraging quality over quantity
When handmade items are priced too low, there’s a temptation to focus on quantity over quality just to make ends meet. This approach can lead to burnout and diminish the joy that comes from creating something special with your hands. By setting fair prices, you give yourself the space to focus on the quality of your work, rather than feeling pressured to churn out pieces at an unsustainable pace.
Fair pricing encourages a mindset where each piece is crafted with care, attention, and love—qualities that are at the heart of why we create in the first place. It allows you to take pride in your work and to know that every piece you sell is not just a product, but a reflection of your passion and dedication.
Building a sustainable crafting business
Lastly, fair pricing is essential for building a sustainable business. Whether you knit or crochet as a hobby or as a full-time job, ensuring that your prices cover all your costs, including your time and materials, is key to maintaining your passion long-term. It allows you to reinvest in better materials, take on more ambitious projects, and grow your skills without the constant stress of financial strain.
By pricing your pieces in a way that truly reflects their value, you’re setting yourself up for success. You’re creating a business model that respects your craft and your time, and that allows you to continue doing what you love without compromising on quality or integrity.
Fair pricing is more than just a number on a tag—it’s a commitment to valuing your work and the work of all makers. It’s about building a community that thrives on mutual respect and support, where every handmade item is seen for the art that it truly is. By embracing fair pricing, you’re not just setting yourself up for success—you’re helping to create a world where handmade crafts are cherished and celebrated.
Wrapping Up: Pricing Your Handmade Pieces with Confidence
I really hope that this article has helped you shift your view about pricing and that you’ll be able to price your beautiful creations fairly and with confidence. Remember that pricing your handmade knitwear and crochet pieces isn’t just about crunching numbers—it’s about valuing your craft and the passion you put into each stitch. By understanding the true cost of your materials, labor, and overhead, and using tools like the Stitch Profit Calculator, you’re setting yourself up for success. You’re not just selling a product; you’re sharing a piece of your creativity and skill with the world.
Feel assured in setting prices that are fair to both you and your customers. By thoughtfully pricing your work, you're not only valuing your efforts but also contributing to the broader community of artisans. Together, we can foster a culture where handmade items are appreciated as the unique and valuable art they truly represent.
I'd love to hear about your journey with pricing your handmade items. What challenges have you encountered, and what tips or strategies have worked well for you? Feel free to share your experiences in the comments below—I’m eager to continue this discussion with you.
Wishing you happy crafting, and may the process of pricing your beautiful creations be just as fulfilling as making them!