Most handmade businesses start out as a hobby, we decide to try our creative skills at making something then we become addicted and talented enough that what we make people want to buy. Knitting and Crochet is a popular Handmade business because not everyone can wave those magic sticks and create clothing, toys, and homewares. If you think you have what it takes to turn your hobby into a thriving business then be sure to check out this article on Bluprint.
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We wanted to include some of our own top tips too. We suggest not knitting just anything but finding a Niche. Choose a knitting niche and focus on a few specialty items for instance scarfs or knitted totes. What is popular in your area? what do other knitting businesses in your area sell? What don’t they sell? Why aren’t they selling them? Do your research!
What is going to make you stand out from everyone else in the Handmade business? Do you do something unique? or different? maybe you only use special yarns? maybe you only make knitted items for boys? babies? goats? who knows. Find your market. I mean is there lots of goat owners in your area ?
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Why is it so important to get the pricing right? If your handcrafted product is not priced right, you will not make a profit. It will be tough to keep your firm running without a decent profit margin, and it will be hard to make a living from it.
Many skilled craftspeople base their labor costs on a rate of $12 to $20 per hour. To get the retail price, many people recommend multiplying the base price by 2.5 or 3. Do you wish to sell your homemade craft product in bulk? Then use this formula to pricing. 2 x Materials = Wholesale Price
Retail Price = Wholesale Price x 2 (or, in other words, Supplies x 4).
But wait you are not done yet! Remember to provide your hourly pay rate – how much do you wish to be paid each hour?
Simply multiply the number of hours it took you to create the product by your hourly rate to determine how much you should charge for labor charges (on top of the supplies cost).
One last thing to calculate is your overhead costs, this is not supplies but other little things like Electricity, fuel to the market, and tools you have bought to produce the crafts. If you are selling on Etsy then make sure to cover the Etsy fees as it are often overlooked.
Etsy is our preferred online seller for handmade items and crafts, Etsy is a familiar shopfront that makes buyers comfortable and confident in making purchases. Looking for other options to sell your crafts than Etsy? Check out this article – Alternative places to sell your crafts online .
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