Pricing 101: A Guide for Aspiring Knitwear and Crochet Designers

You’re at the beginning of your pricing journey but unsure of where to begin? As you venture into the exciting world of selling your digital products, setting the right pricing can feel like a daunting task. But fear not, gosadi is here to share some valuable advice on how to navigate this journey while ensuring you give yourself a fair wage and make your passion project financially sustainable. 

First things first, let's break down your costs into two categories: the cost of the design and the cost of the product. The cost of the design includes the time it took you to create the pattern and the materials used in the process. Be sure to factor in both your creative efforts and the monetary investment in supplies to determine this cost. On the other hand, the cost of the product encompasses expenses for ALL essential “additional” services like hiring a tech editor, hiring a photographer, and creating a schematic to enhance the presentation and professionalism of your pattern.

To set your pricing, it's crucial to calculate your breakeven point. This means determining the total investment in your product, which is the sum of the design and product costs. Understanding your breakeven point will help you establish a foundation for your pricing strategy.

When thinking about materials and materials costs; Consider whether you'll collaborate with yarn companies to cover fees, materials, and your time. How low can you quickly cover your initial investment in your product? 

Knowing your breakeven point gives you a target and a goal. It also lets you track and know when a single design has crossed the threshold into straight profit!

Now comes the exciting part - planning your long-term strategy! 

Determine whether you prioritize quick returns or a steady stream of income over time. Having a clear long-term vision will guide you in setting prices that align with your financial goals.

Think about participating in specific events or promotions to boost your pattern's visibility around the launch. See what activations you can either create or participate in to create a buzz for the launch of your pattern and set you up for long-term success.

Understanding your customer is essential to finding the perfect pricing sweet spot. Take the time to research and understand what your target audience is willing to pay for a high-quality pattern. 

Avoid pricing your products too high and potentially deterring potential buyers, but also refrain from undervaluing your hard work. Striking the right balance will ensure your patterns remain appealing and accessible.

Look at your own pattern library as a starting point to get to know your audience. But also take a look at the patterns created by other designers that your pattern will live next to on platforms like Ravelry. Use the search function to look up patterns with similar names to the one you want to use and patterns of the same style. What is the average cost of those patterns? Which ones have the highest amounts of customer photos, saves, and projects? All of this will tell you if you’re on the right track with where your products are priced.

Investing in quality product photography or videos can have a significant impact on your pattern's success. Engaging visuals can answer customer questions, showcase the beauty of your design, and MOST importantly reduce the need for extensive customer service follow-ups. Consider allocating some of your budget to this aspect to create a strong first impression and save yourself money in the long run.

This will increase your initial investment but pay off incredibly for your brand beyond just this specific design.

Even with all of this guidance, it comes down to what works for you. 

Remember, pricing your digital patterns is an art that evolves with experience. Be open to experimentation, learn from your successes and challenges, and adjust your pricing as needed. So take your time before diving in. 

The audience you bring in will expect a price range from you. So it is important to make sure you are putting yourself where you would like to be for this pattern AND where you want to be for the next one. 

With passion, knowledge, and a thoughtful approach, you can confidently set the right prices that ensure a fair wage and a sustainable future for your budding knitwear and crochet design business.