Chapter 1: Part One
Your Creative Mind, and Profiting from your Creations
One of the most important, and sometimes perplexing, aspects of selling is knowing how to price and how much to charge for your finished pieces. Most consumers know how much they are willing to pay for any given item before they check the price tag, and the consumers of crocheted items are no exception. You need to have that same information-to know what your potential customers are willing to pay for your handcrafted (crocheted) products-before you can determine your prices.
However, pricing for profit involves more than choosing a price that will light up your customers’ eyes and open their wallets. It requires knowing the ‘Five C’s’ of effective crafts pricing and marketing:
Your Customers. The consumers most likely to value and buy your crocheted items. The items and features customers want. The price range they are willing and able to pay for items similar to those you want to sell.
Your Competition. The volume, nature, quality, characteristics, availability, and going prices of crocheted items on the market. The most successful crochet entrepreneurs and the “secrets” to their success.
Your Costs. The actual cost to market, produce, and sell your crocheted items, plus the “overhead” costs of doing business: the combined costs of production (your labor), materials, equipment, workspace, marketing, taxes, and miscellaneous business expenses.
Your Capabilities. The nature, quality, and volume of what you can produce, based on your talent, knowledge, productivity (how fast can you crochet?), resources, available time, and goals.
Your Creativity. The “value-added” creativity you bring to your crocheting projects.
Though this approach to earning money with crochet may seem like the five-eyed monster, it is really just taking a close, commonsense look at basic information. Chances are, you are already immersed in crochet for a while, you probably already know much of this information or can readily access it. Now, you just need to do a little research, pull together all the information, think it through… perhaps even write it out on paper… and come up with a pricing formula that appeals both your customers and to you.
Many crafters seeking to turn a hobby into a moneymaking venture start by (and sometimes stop with) focusing on customer needs. The most successful arts and crafts entrepreneurs launch and build their businesses on a different foundation: What do I want? That means looking first at your capabilities. Otherwise, how can you effectively target your customer base, accurately estimate your costs, put the right value on your creativity, or profitability price your products?
Define Your Capabilities
The first step is to establish your goals. For example, do you want to create a for-profit business, or simply “pay the way” of your hobby? Once you define what to do, you can set forth manageable steps (including pricing) that delineate how to achieve your goals.
Only you can determine your personal goals and what you can do to reach them, but completing the following exercises should help you point to the right direction.
How much Income Do I Want To Earn?
I’d like to earn enough money from crocheting to:
__ Cover my craft expenses
X Set aside a slush fund for “Extras” and special occasions
__ Supplement my household income
__ Provide a full income
How Much Time Can I Invest?
I am willing and able to devote the following time to making and marketing my crocheted items:
__ Up to 10 hours a week
X Up to 20 hours a week
__ Up to 40 hours a week
__ More than 40 hours a week
__ Weekdays
X Evenings
X Weekends
__ Other ________.
You might also want to draw up a projected schedule or mark off a calendar, showing which days and times you intend to spend on your crochet “business”.
What Will I Crochet for Sale?
Check all that apply and jot down any other items you are interested in making and selling. You might also want to keep an idea notebook that you can add as concepts for new things to crochet or craft come to you.
Garments & Accessories
__ Bags/Purses
_x_ Coats/Jackets
_x_ Dresses/skirts
_x_ Hats
_x_ Mittens/Gloves
_x_ Ponchos/Vests
_x_ Shawls/Scarves
__ Socks
_x_ Sweaters
__ Other
Home Décor
_x_ Afghans/Blankets
__ Curtains
_x_ Doilies
_x_ Pillows
_x_ Table Runners/Placemats
_x_ Tablecloths
_x_ Other _____
Novelties
__ Doll clothing and accessories
__ Dolls
__ Stuffed Animals
__Other ____
Items For
_x_ Infants and Toddlers
_x_ Children
_x_ Teenagers
_x_ Women
_x_ Men
_x_ Other Pets
Which Freelance Strategy Will I Use?
_x_ Speculative (make it, then sell it)
_x_ Order (market/take orders for specific items)
_x_ Custom (design/make to order)
_x_ Original (create from your own designs)
Other Issues to Consider
• Do I have the resources necessary to cover initial material and supply costs?
Yes, Because I have a regular job that allows me to afford yarn of my choice, also allows me to buy stitchery kits. I can order supplies such as business cards, signs, tents, tables, covers, etc. I can pay my own way into attending craft fairs.
• Can I work well with customers?
I think I do, my prices are fair, sometimes I will get a cheapskate trying to lower the price. He/She does not realize I was the one who made the item by hand, and not a machine. So I stay firm on price, no matter what.
• Are my tools and workspace conducive to creating crocheted items for sale?
VERY, I have a whole room dedicated to my craft, it's roomy and clean. I work in my den, where I have a comfortable chair and footstool. The dogs also keep me company, too. Although somewhat annoying....lol
• Do I have sufficient experience and skill to meet my moneymaking goals?
I am an intermediate level crocheter, and experienced level stitch artisan. It meets and surpasses my goals, especially during the autumn and holiday seasons.
• Do I enjoy making things for others?
Absolutely, but some people are just not very supportive and receptive to my handiwork. For example, my sister-in-law doesn't really appreciate what I make. So I stopped making things for her. She only gets a bottle of wine, because she does not deserve my art, since she does not appreciate it.
• Do I have the flexibility and creativity to adapt my crochet work to the style and color preferences of others?
yes, that's the beauty of crochet.
• What are my crocheting/crafting strengths and weaknesses?
My strengths are that eventually I get the pattern I am working on, my weakness is procrastination.
• What are my marketing strengths and weaknesses?
I am a bit rusty, so I figure a freshening up is in order and work on new strategies.
• What, if any, limitations do I foresee in terms of what I am willing and able to crochet for sale?
Just time limitations. There are so many distractions, that the needs of others take over my crafting time.
After going through these exercises, you should have a pretty good handle on the crocheted/crafted items you are willing and able to create for sale. The next step is to find customers who align with your goals and capabilities.
Your Creative Mind, and Profiting from your Creations
One of the most important, and sometimes perplexing, aspects of selling is knowing how to price and how much to charge for your finished pieces. Most consumers know how much they are willing to pay for any given item before they check the price tag, and the consumers of crocheted items are no exception. You need to have that same information-to know what your potential customers are willing to pay for your handcrafted (crocheted) products-before you can determine your prices.
However, pricing for profit involves more than choosing a price that will light up your customers’ eyes and open their wallets. It requires knowing the ‘Five C’s’ of effective crafts pricing and marketing:
Your Customers. The consumers most likely to value and buy your crocheted items. The items and features customers want. The price range they are willing and able to pay for items similar to those you want to sell.
Your Competition. The volume, nature, quality, characteristics, availability, and going prices of crocheted items on the market. The most successful crochet entrepreneurs and the “secrets” to their success.
Your Costs. The actual cost to market, produce, and sell your crocheted items, plus the “overhead” costs of doing business: the combined costs of production (your labor), materials, equipment, workspace, marketing, taxes, and miscellaneous business expenses.
Your Capabilities. The nature, quality, and volume of what you can produce, based on your talent, knowledge, productivity (how fast can you crochet?), resources, available time, and goals.
Your Creativity. The “value-added” creativity you bring to your crocheting projects.
Though this approach to earning money with crochet may seem like the five-eyed monster, it is really just taking a close, commonsense look at basic information. Chances are, you are already immersed in crochet for a while, you probably already know much of this information or can readily access it. Now, you just need to do a little research, pull together all the information, think it through… perhaps even write it out on paper… and come up with a pricing formula that appeals both your customers and to you.
Many crafters seeking to turn a hobby into a moneymaking venture start by (and sometimes stop with) focusing on customer needs. The most successful arts and crafts entrepreneurs launch and build their businesses on a different foundation: What do I want? That means looking first at your capabilities. Otherwise, how can you effectively target your customer base, accurately estimate your costs, put the right value on your creativity, or profitability price your products?
Define Your Capabilities
The first step is to establish your goals. For example, do you want to create a for-profit business, or simply “pay the way” of your hobby? Once you define what to do, you can set forth manageable steps (including pricing) that delineate how to achieve your goals.
Only you can determine your personal goals and what you can do to reach them, but completing the following exercises should help you point to the right direction.
How much Income Do I Want To Earn?
I’d like to earn enough money from crocheting to:
__ Cover my craft expenses
X Set aside a slush fund for “Extras” and special occasions
__ Supplement my household income
__ Provide a full income
How Much Time Can I Invest?
I am willing and able to devote the following time to making and marketing my crocheted items:
__ Up to 10 hours a week
X Up to 20 hours a week
__ Up to 40 hours a week
__ More than 40 hours a week
__ Weekdays
X Evenings
X Weekends
__ Other ________.
You might also want to draw up a projected schedule or mark off a calendar, showing which days and times you intend to spend on your crochet “business”.
What Will I Crochet for Sale?
Check all that apply and jot down any other items you are interested in making and selling. You might also want to keep an idea notebook that you can add as concepts for new things to crochet or craft come to you.
Garments & Accessories
__ Bags/Purses
_x_ Coats/Jackets
_x_ Dresses/skirts
_x_ Hats
_x_ Mittens/Gloves
_x_ Ponchos/Vests
_x_ Shawls/Scarves
__ Socks
_x_ Sweaters
__ Other
Home Décor
_x_ Afghans/Blankets
__ Curtains
_x_ Doilies
_x_ Pillows
_x_ Table Runners/Placemats
_x_ Tablecloths
_x_ Other _____
Novelties
__ Doll clothing and accessories
__ Dolls
__ Stuffed Animals
__Other ____
Items For
_x_ Infants and Toddlers
_x_ Children
_x_ Teenagers
_x_ Women
_x_ Men
_x_ Other Pets
Which Freelance Strategy Will I Use?
_x_ Speculative (make it, then sell it)
_x_ Order (market/take orders for specific items)
_x_ Custom (design/make to order)
_x_ Original (create from your own designs)
Other Issues to Consider
• Do I have the resources necessary to cover initial material and supply costs?
Yes, Because I have a regular job that allows me to afford yarn of my choice, also allows me to buy stitchery kits. I can order supplies such as business cards, signs, tents, tables, covers, etc. I can pay my own way into attending craft fairs.
• Can I work well with customers?
I think I do, my prices are fair, sometimes I will get a cheapskate trying to lower the price. He/She does not realize I was the one who made the item by hand, and not a machine. So I stay firm on price, no matter what.
• Are my tools and workspace conducive to creating crocheted items for sale?
VERY, I have a whole room dedicated to my craft, it's roomy and clean. I work in my den, where I have a comfortable chair and footstool. The dogs also keep me company, too. Although somewhat annoying....lol
• Do I have sufficient experience and skill to meet my moneymaking goals?
I am an intermediate level crocheter, and experienced level stitch artisan. It meets and surpasses my goals, especially during the autumn and holiday seasons.
• Do I enjoy making things for others?
Absolutely, but some people are just not very supportive and receptive to my handiwork. For example, my sister-in-law doesn't really appreciate what I make. So I stopped making things for her. She only gets a bottle of wine, because she does not deserve my art, since she does not appreciate it.
• Do I have the flexibility and creativity to adapt my crochet work to the style and color preferences of others?
yes, that's the beauty of crochet.
• What are my crocheting/crafting strengths and weaknesses?
My strengths are that eventually I get the pattern I am working on, my weakness is procrastination.
• What are my marketing strengths and weaknesses?
I am a bit rusty, so I figure a freshening up is in order and work on new strategies.
• What, if any, limitations do I foresee in terms of what I am willing and able to crochet for sale?
Just time limitations. There are so many distractions, that the needs of others take over my crafting time.
After going through these exercises, you should have a pretty good handle on the crocheted/crafted items you are willing and able to create for sale. The next step is to find customers who align with your goals and capabilities.
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