How do you decide on how much to charge (crochet/knitting)?
For those of you who sell your crochet/knitting work, how did you decide on your pricing? I did a craft show recently and did REALLY well. Much better than I had expected to. It was a small show in a churches basement and I ended up selling out before the show was over. The problem is, everyone I know insists I am under pricing my work. The way I have priced my work is, I doubled my supply costs. Actually, I more than doubled my costs on many of the items. This hat for example: I was able to make 8 hats w/ the yarn and buttons I purchased for $14. I charged $10ea for a profit of about $66 for that particular lot or $8.25ea hat.
Then there is this one (the red). It's made from cotton. I was able to make 4 of them for $3 (I found the yarn on clearance and happened to have a coupon to stack on the clearance, pure luck w/that one. Retail would have been $9 which still would have left me w/ a profit at $10ea). I charged $10 each for those as well. So a profit of $37 or $9.25 ea .These were just 2 of the items I had at the show, and 2 of the most profitable items. But all in all I charged a minimum of double what I spent to make the item (the craft show fee was only $45. Which I did take into account).
Anyway, after checking a few sites I noticed many of my items were under priced. I was actually surprised at how under priced they were. Things I was selling for $10 other 'home made' sites are selling similar items for $25-$35 plus shipping. Is there a better way to calculate my prices. I want to be reasonable, but I don't want to 'lose out' on to much money.....even if I can 'afford' to. Any thoughts/opinions?