Crochet Business: How much can you get paid selling crochet?

How much can you get paid for selling crochet?Crochet Business: How much can you get paid selling crochet?

 

When starting a crochet business it’s normal to ask “How much can I get paid selling crochet?” You want to be sure you aren’t wasting your time. In order to answer the question you need to ask yourself “How much do you want to make?” Unlike in a job where you are subject to what your employer can pay you, in your business you can set your wage or your profit by how hard you work.

I know you want the specifics right? Let’s say you want to make $15 per hour and only have 20 hours a week to work your business – that is $300 per week. Assuming you want this to be profit only, you’ll have to do a bit of math. You will first need to know the actual cost of your materials. This includes your yarn, fabric labels, shipping, fees, insurance, and anything else that goes into producing and shipping your product.

Once you have this figured out you can use a simple formula to figure out your asking price. For this example we will use the standard – (materials x3) + cost of labor = price. Input your desired wage in the “cost of labor” and add it to the “materials x 3”. This is how much you charge your customer. For some this will be an outrageous sum to charge your customer so the next step is to cut your labor cost.

i.e. ($7.50 x 3 = $22.50) + $15.00 {x 3 hours labor} = $67.50 (see DesigninganMBA)

Your next step would be to identify which products you can make that would sell at this price. One more thing you need to consider is state taxes and business expenses like computer access, web hosting, printing invoices, and anything else that goes into running your business. You will pay those expenses out of your labor costs ($15/hour). This will be your actual pay however it might not be a profit.

Remember most businesses – close to 90% maybe even more – do not earn a profit in the first year and sometimes don’t profit until the third year. Business is tough – remember – just because you make a sale does not mean you are making profit, unless you figure your profit into the sale price of your item.

Back to our original question of how much can you make selling crochet if your goal is to make $15/hour for 20 hours of labor? A quick note – the Department of Labor suggests that the wage for workers in the fiber arts or garment manufacturing industry is $4.18 {2009} and $4.68 {2015} so you might need to consider lowering your production labor costs.

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For this example let’s just say that our $15/hour is our profit. In order to meet your goal of $300/week you will need to produce between 4 – 5 items to sell. There is a flaw to this example because you spend your working hours doing other behind the scenes work like bookkeeping, customer service, shipping, designing, listing items in your shop, etc.

All your behind the scenes work is unpaid labor unless you figure out a sum to add-on to the total price of your product. As it stands now, your product is close to $70 and not many people will spend that much on a handmade crocheted item unless you do something special like use eco-friendly material, spin and dye your own yarn, or you are a fiber arts celebrity like Olek.

What is the answer to our question? Rethink how you get paid. Consider all work done in producing your product including the behind the scenes stuff. You may even need to add-on an additional labor cost for that.

There is no easy answer to give you but to encourage you to set the labor cost you want. It is your business after all.  Make sure you are offering your customers quality products and services. Give beyond what the market expects and develop a loyal following. Over time you will see whether you can make your desired income producing your crocheted items.

Author Bio:

This article came to us from Sara Duggan aka Momwithahook, she writes about crochet business at Crochet Business Blog. If you want more great articles on selling your crochet or blogging about crochet?  Subscribe to her updates via email.

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Comments

  1. I hate the business end of work LOL. This does ease the figuring though. I absolutely love you blogs. You really know how to clearly get your ideas across.

    • Thank you so much, however, I can’t take credit for this post! It is a guest post by Sara Duggar (her info is at the bottom of the post) and I think she did a fantastic job which is why I posted it. . . believe it or not, I too hate the business part of work, but someone’s gotta do it! :)

  2. Great info and great blog!!!! Thanks for sharing.

  3. Momwithahook- Sara says:

    Hi Sedie, thanks for allowing me to guest post on your blog. Looking forward to your new book. :)

  4. Thanks for this informative post. I just recently have been debating whether it’s worth it to continue selling my handmade products. This post is something I wished I would have read before I started. Love the blog!

    • I’m so glad this post could help Melissa. It exactly why I have this blog. Thanks for leaving such a nice comment. Happy hooking!

  5. Thank you Sara and Sedie for an eye opener article. This one factor has kept me from selling my crochet. Are people willing to buy my crochet at my prices! Guess I will have to work some more on that. :)

Trackbacks

  1. […] Ever wonder how much you can get paid selling crochet? Here is a brief opinion about how to calculate and consider the pros and cons.  […]

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