Is it an unreasonable price?

[MagickPatchworks]

I am currently working on an intense crochet project. I am half way through the front (hard) side, and now I can estimate the cost of this hand crochet, double sided, twin size blanket.
Here is my logic:
the front side was 12 balls of yarn. each ball of yarn is 4 dollars. 12x4 is 48 dollars of yarn, for the half of the one side. that whole side would logically be 96 dollars of yarn.
the back side is the same size, and a different pattern. I estimate, because I have done this pattern before, to be the same amount of yarn. So, materials is 200 dollars.
This whole side, after completing just a few rows, I could estimate it to take 85 hours of work. The other side works up faster, so that will take an estimated 35 hours. 85+45 = 130 hours of work, and I pay myself 2.50 USD an hour. 130 x 2.50 = 325. add materials, that is 525. Normally I round up a bit if the job was intensive, which it was/is, so 550.

I have decided, that if I sell in person, to charge 550. If I sell on etsy (3.5% fee) I will charge 600 dollars, and include shipping in that price.

To me, this seems incredibly reasonable, but I am concerned that nobody will buy it, even though my price is justified.

[TSKMonograms]

Difficult question. The logic behind your pricing seems spot on. I am no expert in the crocheting field. I see a couple on Etsy going for 650 range. However, most are going for a couple hundred bucks.

I know this doesn't really help. I think your pricing is justified and logical though.

[colorsofsummer]

I recommend that you check and see what other sellers are pricing theirs at. I did see some for $500-700 that had a lot of different colors and intense patterns. Good luck to you!!

[TSKMonograms]

I agree with Summer, I saw the same price ranges. I guess it is hard for us to judge your price point without actually seeing the colors, print, etc.

[Former_Member]

I think it's reasonable just make sure you have good pictures to show the quality and detail of your work. I think a lot of people shop on Etsy for quality handmade items and will pay more for it.

[fishcouple]

It's a tricky question and I agree with your logic. But in reality, I think the key is the "demand". If you met someone who's willing to pay that amount, that's perfect; but on the other hand, you might also end up having this sitting in your shop for a while.

Anyway, I wish you all the best! :)

[maydaylabels]

You pay yourself $2.50/hr?

[MariasWorkshop]

What Matthew and Sara said.

[Former_Member]

I have a few more expensive items in my other shop. They do not sell often, but there are other good reasons to have them sitting in my shop, even for years.

Your most elaborate work can act as a show case of your talent. Even if the person who likes the blanket cannot afford to buy it, they may well buy something else from your shop.

When the blanket is ready to be posted, present it at the very front of your shop. It's high price will affect on how people will perceive other items in your shop.

Personally I think your price is unreasonable, not for the customer, but for you. $2.50 an hour is very little, considering all you other costs have to come out of it. I realise it may be difficult to ask for a higher price for your labour, especially with crochet. But why not give it a go? From experience it is always easier to lower prices than it is to raise them at a later point.

That blanket represents 130 hours of your life. Imagine what else you could have made in that time. So please don't sell yourself short! :-)

[MagickPatchworks]

@matthew and sara, depending on how difficult the project is, I pay myself up to 5 dollars an hour, but because what I do is so time intensive, paying myself minimum wage would bring the costs of all of my items to a severely unreasonable price

[RomaMiaTradingCo]

I would list it as that price. I mean, if its how much it cost to make, and others are selling it for that price, try it. You never know, there could be someone who could plop that type of money down for it.

Like another poster said, its easier to lower prices than to raise them.

[MagickPatchworks]

Alright, well, after hearing all of this, this is what I have decided for the moment:
I will start my listing at 800. That is me paying myself 5 dollars an hour. Not minimum wage, but still reasonable to those who understand the price.
In person price is 50 dollars under my current online offer.
Every time I have to get rid of the listing, I will lower it down 100 dollars. I will not go lower than 600. If nobody buys it after two "renewals" (8 months) at 600 dollars, I will likely keep it for myself. It will be cozy!

[maydaylabels]

Those formulas do not tell you how to price an item. They tell you what the minimum price must be to account for the various factors you include in the formula.

Then you look at the market and decide what price the market will bear for your item. This includes consideration of:

price of other similar items
presentation compared to other items (perceived value)
advantages/disadvantages you have over other similar items (actual value)

When you arrive at a price you think the market will bear, you look at it and decide if you can produce the item for that price. If you cannot, don't bother making it with the intention of selling it. If you can produce it for that price (after calculating your minimum price with the formula), then you're good to go :)

I understand about charging a smaller wage for crochet - part of the issue you have is that many people (including you) are willing and able to produce crocheted work for a non-living wage, because they love to crochet and are using their shops to support a hobby. That's totally valid. It's the reason a lot of handiwork is cheap in terms of hourly labor compared to say, plumbing or electrical engineering or accounting. Many people have the skills, do not need to use those skills to support themselves, and love to do it anyway, regardless of how much they are paid.

(also, there are a lot of other more mechanized textile production techniques that require a lot less labor, so the market is somewhat depressed to account for it).

[Former_Member]

I have to ask, is there a reason why you are making such an expensive item if you don't have a buyer lined up already?

Expensive items are great to showcase your talent, but unfortunately, your item is only worth what someone is willing to pay for it. Time and money factors don't really apply if it doesn't get sold. What happens if you do all that work and no one buys it? It's nice if you really want it for yourself but you have to be prepared that it could be too expensive to sell online.

I made this mistake myself and my family ended up with very expensive gifts around the holidays, lol. Either way good luck, just remember these words: work smarter, not harder. good luck!

[MagickPatchworks]

It is more for a showcase thing. It is also an experimentation thing. I have never done anything like this. I hope someone will buy it, but I have accepted a reality that maybe someone wont, and if they don't, I have a nice blanket for myself to keep on those cold Dorm nights. Its really no big deal to me.

[RomaMiaTradingCo]

I mean, there's a buyer for everything. Yeah, it might take a little longer to get a $500 blanket sold verses one for $50.

I sold at a craft fair two years ago around Christmas time. The woman I was next to was selling a a crocheted blanket for over $100 (I forget the exact amount). She brought that blanket knowing that she probably wouldn't sell it. She brought it because it was an eye catcher and it brought people over to her table. She cleaned up that day!

I also spoke to another person at a fair about their business partner having a display piece that they absolutely adored. She put a crazy high price on it thinking no one would buy it. Well, it took a while, but she ended up selling it.

So I think its worth a shot to try and sell it. Especially since this might be the first time your doing a project of this caliber. Its worth a shot to try!

[BrushStrokeOrnaments]

I like the idea of showcasing some of your work (with no great expectation of sale) - to promote and increase sales of the other items in your shop. That's fine. But most of the items in your shop are under $30. The blanket, at the price of $650+ is quite an outlier. Now I'm not suggesting that you don't list it...but you may want to give more thought to the direction of your shop. This very pricey, time-consuming-to-make blanket doesn't yet fit in with the flavor of your shop. Maybe you want to work in the direction of all higher price merchandise, or maybe you need consider a bit more.

And Etsy may not be the best way to market your high end merchandise. Have you considered speaking with any boutiques, gift shops or consignment shops? Have you done some google searches about best selling venues for high end merchandise? Maybe some new ideas will crop up.

Good luck!

[weekendjewelry1]

Kaela, honestly, I'd be very tempted to call it a "Hero Piece", and list it at $1,000 - or more. Have stellar photos - and on one of them (not the first one), right on the photo, put "100 hours to complete" or something. And in your description, talk straight away about how much yarn (not the cost of the yarn, but the quantityi) and the hours involved. Don't "justify" how much it costs - FLAUNT it!

I got the idea when I first did craft shows (for my offsite jewelry, not supplie). A very successful bead artist who did shows all over the country always had what she called a "Hero Piece". It was usually large, beautifully crafted, complex, and very expensive. She always put it right out front, not expecting it to sell, but to start conversations. And surprisingly often, it did sell.

I know that online, we can't attract people's attention to our tabletop to start a conversation - but for a .20 listing, I'd still have an expensive hero piece, and it would be one of my "featured items". You'll get views, just because some people will be curious.

You'll have a LOT of work on it - price it to show that!

[BrushStrokeOrnaments]

Of all things, I , moments ago, read this post:

https://www.etsy.com/teams/5002/etsy-success/discuss/16588715/?ref=team_page

This paragraph touches the price differential thing an interesting way:

Price

If all the items in your shop are $5. The one item in your shop priced at $50 will seem expensive, thus lowering the perceived value of that one item. However the $50 item is simultaneously raising the perceived value of the $5 lot. You want to cater to different price groups, but make sure your pricing favours the price group that is most profitable. If it is the $50 item, then raise prices in the $5 group and create a $100 item. If the $5 item is more profitable, keep the $50 item and create similar items costing $10 and $20. Display your most expensive items first, as that will set up the benchmark to which the viewer compares the rest of your prices.

(thanks to https://www.etsy.com/people/MarleenaBarran

[PaperBoundLove]

I love crocheting too and I used to sell crochet items on here.
I know it is so labour intensive.

About the pricing, I think it is fair but you have to make sure you market to the people who can spend that much. I personally wouldn't spend that much a blanket, but I know some people wouldn't even think twice about spending it if they love it.

I think you can also make smaller blankets, like the ones for babies and children. That way, you can sell them for $100 to $200 range, and people like me would buy that. (:

I hope this helps.

- Khin x

[fishcouple]

Yes, I like the idea of showcasing. It is only .20 listing fee after all.

I had a favor box design that was real cute but super time-consuming, I thought about taking it off but it draws so many clients to my store. So I decided to keep it but whenever there was a rush inquiry, I introduced another similar design, some liked it and some still wanted it. I ended up raised a bit on price so I won't feel that I was selling myself off.

I also like Khin's idea of designing something less expensive so more could afford.