Knitting Pricing: How to Price Knitted Sweaters, Scarves and Hats
How to price knitted items: yarn cost, time by size, finishing and fees, with hat, scarf and sweater examples.
In this guide
Knitted items take a lot of time, and buyers often compare them with store prices. This guide shows how to price knitted hats, scarves and sweaters so your time is paid, and how to explain the value.
- Price = yarn + time + finishing + packaging + overhead, then profit and fees.
- A knitted hat costs about $41.25 to make and sells for about $60.
- Sweaters take many hours. Many knitters sell them as custom orders only.
- Track yarn cost per yard to price accurately.
Why knitting needs time-based pricing
A sweater can take 20 to 40 hours. That time must be in the price.
Natural fibers like wool cost more than acrylic.
The steps
1. Cost yarn
Yards used times cost per yard.
2. Track time
Knitting, seaming and blocking.
3. Add finishing
Buttons, labels and pom-poms.
4. Add packaging
Bag or tag.
5. Add overhead, profit and fees
Use 10% overhead, 30% profit and fees.
Worked example: hat, scarf and sweater
$15 an hour, 10% overhead, 30% profit and 10% fees.
| Knitted hat | Scarf | Adult sweater | |
|---|---|---|---|
| Yarn | $6.00 | $15.00 | $60.00 |
| Finishing and packaging | $1.50 | $1.00 | $4.00 |
| Labor at $15.00/hr | 2 hr = $30.00 | 6 hr = $90.00 | 25 hr = $375.00 |
| Overhead (10%) | $3.75 | $10.60 | $43.90 |
| Cost to make | $41.25 | $116.60 | $482.90 |
| Plus 30% profit | $53.62 | $151.58 | $627.77 |
| Cover 10% selling fees (divide by 0.90) | $59.58 | $168.42 | $697.52 |
| Suggested price | $60 | $169 | $698 |
Sweaters price high because of the hours. Hats and scarves sell more often.
Pricing mistakes to avoid
- Pricing against store items. Handmade knits are a different product.
- Ignoring yarn quality. Wool costs more and should price higher.
- No sizing charge. Larger sizes use more yarn and time.
- No deposit on sweaters. Ask for a deposit.
What you keep on each sales channel
The same knitted hat at $60.00 leaves different money in your pocket depending on where it sells. This uses the $41.25 cost to make from the example above, with Etsy's current transaction, processing and listing fees and Square's in-person card rate. Shipping, sales tax and ads are left out.
| Where it sells | Buyer pays | Fees | You keep | Profit over cost |
|---|---|---|---|---|
| Etsy (6.5% + 3% + $0.25 + $0.20 listing) | $60.00 | $6.15 | $53.85 | $12.60 |
| Your own website (about 2.9% + $0.30) | $60.00 | $2.04 | $57.96 | $16.71 |
| Craft fair, card reader (2.6% + $0.15) | $60.00 | $1.71 | $58.29 | $17.04 |
| Craft fair, cash | $60.00 | $0.00 | $60.00 | $18.75 |
| Wholesale to a shop (50% of retail) | $30.00 | $0.00 | $30.00 | -$11.25 |
On Etsy, fees take about 10% of a $60.00 sale. If a sale comes through Etsy Offsite Ads, add another 15% (12% for shops over $10,000 a year), so build that into your price if you're enrolled. Wholesale at half of retail loses $11.25 per piece here. Either raise retail, lower your cost, or set a separate wholesale price with a case minimum.
Knitting checklist
- Yarn cost.
- Time.
- Finishing.
- Packaging.
- Overhead, profit and fees.
- Size pricing.
Price knits by size
Type your yarn, time and size into the peach cells. The calculator shows cost and price.
Get the Crochet and Knit Clothing CalculatorCalculators that help
- Stitch count: Price by stitch count. Use the Knit & Crochet Pricing by Stitch Count Calculator – Gauge, Size, Stitches, Hours & Price per 1,000 Stitches.
- Yarn cost: Compare yarn cost per yard. Use the Yarn Cost per Yard & Supplier Comparison Calculator – Per Yard, Meter, 100 g & Project Cost.
- Hats and scarves: Price small accessories. Use the Crochet Hats, Scarves & Small Accessories Pricing Calculator – 8 Items, Yarn, Minutes & Pay per Hour.
- Blankets: Price blankets by size. Use the Crochet & Knit Blanket Pricing Calculator by Size – Swatch to Yards, Skeins, Hours & Price, Lovey to King.
Common questions
How much should I charge for a knitted hat?
Many sell for about $30 to $70. In this guide a 2 hour hat prices at about $60, which pays $15 an hour plus profit.
How much for a hand knitted sweater?
Often several hundred dollars because of the hours.
How do I price yarn?
Yards used times cost per yard.
Should I charge for patterns?
Include pattern cost if you bought it.
How do I price custom knits?
Use a quote and a deposit.
Is knitting profitable?
Small accessories are easier to sell at a profit.
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