How to price crochet items for sale and make a profit

Whether you’re a hobbyist looking to sell your creations or an entrepreneur hoping to start a crochet business, understanding how to price your items will ensure you’re covering your costs.

In this article, I’ll walk you through the key factors that go into pricing your crochet products – materials, labor, overhead, and more. That way, you can confidently set prices that reflect the true value of your work and help you succeed in your craft-based business.

Key pricing factors for crochet items

When pricing your crochet items, it’s important to consider all the factors that contribute to the cost of making and selling your products. Pricing is more than just about the materials you use; it’s about understanding every expense that goes into the creation and sale of your work. 

Below are the key factors to keep in mind as you set a fair, profitable price:

• Material costs
• Labor costs
• Overhead expenses
• Market value
• Shipping and packaging costs

1. Material costs

The most direct cost of creating your crochet item is the materials you use, including yarn, crochet hooks, needles, and any additional supplies like buttons or beads. It’s important to calculate how much of each material is used for a single item. 

For example, if you use 1.5 skeins of yarn for a scarf, and each skein costs $5, your total material cost for yarn would be $7.50.

Tip: Be mindful of the quality of the yarn. If you’re using premium yarns like merino wool or alpaca, your material cost will naturally be higher. On the other hand, budget-friendly yarns can help keep your costs down but may affect the perceived value of your item.

2. Labor costs

Your time is a crucial factor in pricing. This includes not only the time spent crocheting but also any time spent on preparation, learning, finishing touches (like washing or blocking), and even running your business (such as packaging and marketing). 

For example, if you spend 3 hours crocheting a scarf and 30 minutes finishing it, that’s 3.5 hours in total. If you value your time at $15 per hour, your labor cost would be $52.50.

Tip: Be realistic about how long each task takes and factor in all stages of the process. Over time, as you gain experience, you may be able to work faster, which will lower your labor costs for the same item.

3. Overhead expenses

Overhead refers to the general costs of running your crochet business, such as website hosting, accounting software, photography equipment, and advertising. These costs are indirect, but still essential to consider when pricing your products. 

For instance, if you spend $50 per month on a website and host 10 items for sale, you can allocate $5 per item for overhead.

Tip: Track all your business expenses, even small ones, to ensure you don’t overlook hidden costs. As your business grows, overhead costs may increase, so periodically review your pricing strategy to keep up with these changes.

4. Market value

Market value refers to how much similar crochet items are selling for in your market. Research what other crafters and shops are charging for similar products. While it’s essential to price based on your costs, you also want to be competitive. 

If most handmade scarves in your niche are priced around $30, pricing your item too high could turn potential buyers away, even if your costs justify a higher price.

Tip: Take note of how items are marketed – premium products often come with a story or unique feature that justifies higher pricing. For example, a handmade scarf crafted from organic cotton or a unique pattern may command a higher price point.

5. Shipping and packaging costs

Don’t forget to include the cost of shipping and packaging in your pricing. This includes the cost of boxes, tissue paper, labels, and shipping fees. If you offer free shipping, factor the shipping cost into your price. 

For example, if shipping a scarf costs $7, you’ll need to decide whether to include that in your price or charge separately for shipping.

Tip: Consider offering flat-rate shipping or building shipping costs into your product price to avoid confusing your customers. You can also look into bulk shipping supplies to reduce costs.

Best crochet items pricing strategies

When pricing your crochet items, it’s important to choose a strategy that aligns with your business goals and helps you cover your costs while making a profit. The right pricing strategy will depend on your target market, the complexity of your items, and how much you want to earn. 

Below are four pricing strategies to consider and examples that show you how they work:

1. Cost-plus pricing

This is one of the simplest pricing strategies. You calculate the total cost of materials, labor, and overhead, then add a markup percentage to cover your profit margin. The markup ensures that you’re not just covering costs but also making money on your time and efforts.

Example:
Let’s say your yarn and materials cost $10, and it takes you 5 hours to complete the item, charging $15 per hour for your labor:

• Materials cost: $10
• Labor cost: 5 hours x $15 = $75
• Total cost: $10 + $75 = $85

Now, you apply a 30% markup:

• Markup: $85 x 30% = $25.50
• Selling price: $85 + $25.50 = $110

This strategy is straightforward and works well if you want to ensure that you’re covering your costs and earning a profit without having to overthink your pricing.

2. Market-based pricing

With market-based pricing, you research what similar crochet items are being sold for in your market, then set your price accordingly. This strategy helps you remain competitive and can ensure that your prices are in line with what customers are willing to pay.

Example:
If you find that crochet scarves of similar size and quality are selling for around $30–$50, you’ll want to price your scarf within that range. You may want to adjust based on factors like the uniqueness of your design or the premium quality of your materials.

This pricing method works well if you’re selling on platforms like Etsy or at local craft fairs, where consumers have price expectations based on similar products.

3. Value-based pricing

This strategy is based on the perceived value of your item to the customer, rather than simply the cost of materials and labor. If your crochet items have unique features, are made from premium materials, or are handmade with exceptional skill, you may price them higher based on the value they provide to the buyer.

Example:
If your crochet items are made with luxurious, hand-dyed yarn and you’ve invested extra time in creating intricate designs, you might price a scarf higher – even if the actual material costs are low. For example, if your cost is $30, you might price the item at $80, depending on how the customer values its uniqueness and quality.

This strategy works well if you’re positioning your crochet items as premium, luxury, or one-of-a-kind products.

4. Psychological pricing

Psychological pricing is a strategy where you price your items in a way that makes them seem more affordable or attractive to buyers. This could mean pricing something at $29.99 instead of $30 or offering a bundle deal for multiple items to make the price appear more appealing.

Example:
If you’re selling crochet scarves for $40, you might price them at $39.99 to make the item seem less expensive. Similarly, you could bundle a scarf with matching gloves for $70 instead of pricing them separately at $40 and $35.

This is a great strategy if you’re targeting a more budget-conscious market or want to create the illusion of a better deal.

Which strategy to choose?

While all these pricing strategies can work, I prefer cost-plus pricing for new crochet sellers. It’s simple to calculate and ensures that you cover your material and labor costs while still making a profit. 

In the next section, I’ll use this strategy to calculate prices for a few crochet items, so you can see how it works in practice.

How to price crochet items

How to price crochet blanket

Pricing crochet blankets can be tricky due to the materials, time, and effort required. 

Since blankets are typically larger and take more time to complete, it’s important to account for the cost of multiple skeins of yarn, as well as the time spent crocheting and finishing. 

Use the following pricing breakdown to help you determine an appropriate price for your blankets:

Cost factor	Example calculation	Total
Material costs	10 skeins of yarn at $5 per skein	$50
Labor costs	10 hours to crochet at $15 per hour	$150
Overhead costs	Business expenses (marketing, shipping)	$20
Markup (30%)	(Material + labor + overhead) x 30% markup	$72
Final price	Material + labor + overhead + markup	$292

The final price may seem higher than you’d expect, and you might wonder if someone would actually pay that for a handmade item. Many crochet businesses actually sell baby blankets and other labor-intensive products as custom orders only. 

How to price amigurumi 

Amigurumi items, like small plush toys, are often intricate and time-consuming to make. 

The key to pricing amigurumi is not just considering the yarn and labor, but also the complexity of the design and the materials used, such as safety eyes, stuffing, or unique yarn. 

Below is a pricing guide to help you price your amigurumi projects:

Cost factor	Example calculation	Total
Material Costs	2 skeins of yarn at $4 per skein, plus $1 for safety eyes and stuffing	$9
Labor Costs	4 hours to crochet at $15 per hour	$60
Overhead Costs	Business expenses (packaging, advertising)	$10
Markup (30%)	(Material + Labor + Overhead) x 30% markup	$25.50
Final Price	Material + Labor + Overhead + Markup	$104.50

Depending on the crochet patterns you use for amigurumi toys, you might be able to reduce the retail price based on market averages. You could create simpler designs that are faster to make in bulk and reserve better yarn and more intricate designs for higher-priced items.

How much money can you make selling crochet items?

Selling crochet items can be a profitable venture, but the amount of money you can make depends on the types of items you make, how efficiently you price your products, and where you sell them.

On average, crocheters can charge anywhere from $10 to $50 for smaller items like scarves or hats, and upwards of $100 for larger pieces like blankets or sweaters.

For example:

• Small items – A simple scarf might sell for $20–$40, depending on the material quality and time invested.
• Medium items – A handmade baby blanket or a shawl could range between $50–$150.
• Large items – A large crochet blanket could be priced at $100–$300, depending on the yarn and time spent making it.

However, the key to maximizing your earnings lies in understanding the full cost of your materials and labor, and ensuring you price your items with a healthy markup. Keep in mind that the more intricate and time-consuming your items are, the higher the price you should set to cover your labor and make a profit.

If you want to dive deeper into the business side of selling crochet items, check out our article on how to start a crochet business for more detailed guidance.

How to price crochet items FAQ