Those who craft handmade items are not fully paid for their time let alone their talent. As a crafter you have to love what you do, but you should receive just compensation for your effort and skill. If a scarf takes hours to make, even at minimum wage the cost would not be competitive after figuring in the cost of supplies. No one would buy it. When unsure of how much to charge, use the following formula to price your handmade knitted scarves. The amount will be fair to you and potential customers. The items will sell, and you will recoup more than just the cost of supplies. Unless you are a very slow knitter, you will be justly compensated for your ability, labor and materials.
Double the Cost of Supplies
When trying to decide how to price handmade knitted scarves, begin by doubling the cost of supplies. Keep in mind that one skein of yarn might make more than a single item. Figure the expense accordingly. If you use beads or other special embellishments, do not forget to add them to the list. Even small additions are part of the expense. Also, savings that are generated by sales or clearance prices can be passed along to customers, or you can figure in the retail cost instead. The savings can go right into your pocket, and it should since crafters do not usually get as much as they deserve.
Figure Out Your Hourly Wage
Another factor to consider is how long it takes to make your knitted scarves. If feasible, pay yourself an hourly wage. Tack that wage onto the doubled cost of supplies. For example, if the yarn for a single scarf was $3.00 and it took one hour to make, double the cost of the yarn and add on an $8.00 hourly wage. At the rate of $8.00 an hour, the scarf should cost $14.00. It is a fair price for a handmade knitted wrap, but you should be able to charge a little more.
Add on a Reasonable Bonus
If someone wants a handmade knitted scarf, they should be willing to pay a small bonus for the talent that it took to create the item. Give yourself a 15 or 20% tip. Add it to the doubled cost of supplies and your hourly wage. At a rate of 15%, your handcrafted scarf would go for $16.10. Round off the price to an even $16.00. You will enjoy the fruits of your labor, and the buyer will have something that was made with talent and love.
Source: Advanced Crafting Education, Experience and Sales