A hand-crocheted Rasta tam purchased online, what are the costs?

Hi, thanks for stopping by for this mini blog post about costs. I will summarize how a price can be broken down for a custom crochet hat on an online marketplace.

Cost of all Materials needed to make and ship your order: $

Cost of Labor per hour: $

Cost of doing business using an online marketplace: $

Here is an example. You want a Rasta tam hat made in your color choice of teal blue. You find your maker on an online marketplace. Typically, the maker had to pay for their presence there ($). Because this custom color is not one your maker has on hand in stock, she needs to acquire your desired materials from a store. This would require a trip to the store ($) or for material to be shipped to her ($). 4

She would need 4.5 hours of labor from the time she starts to the time it is fully packed and ready to ship. If she is paid $15 an hour, that would equal $67.50. The materials can vary in price between $12-25. The online marketplace charges 15% of the cost of the item plus shipping. There are also mandatory marketing and transaction fees that have to be paid for every sale.

Here is an example of what a maker receives after a purchase has been made. This number does not account for labor per hour, just the cost of materials and fees from the online marketplace. Also, consider that taxes have to be paid every year and quarterly.

As you can see, the maker receives significantly less than what you paid after all factors are considered.

Here is a visual example of what the labor looks like for a Dome Rasta Tam. How much do you pay your hair Stylist an hour? How long does your style last? These Rasta tams can last years with average use of 3-5 times a week. Hand wash, dry, and you are ready to go.

Sometimes, even I forget how intense it can be to create an item because I'm genuinely excited to be a part of making your ideas come to life. I think sharing this with you gives you more insight into the cost part of the process :)

What are the ways that you can get more profit for the maker of your custom items?

• Buy directly from the maker with as few intermediate processors as possible. Cash to hand is the most direct way of payment with no fees involved.

• If you are making a purchase online, there will be an intermediate processor of some kind in order to process your credit card payment. Choose a processor that charges lower fees, such as Zelle, Venmo, Square, and Stripe (Which is what Big Cartel uses)

• Email your maker! Ask them what their preferred payment method is.

  
  

Do you know of other ways makers can receive more profit for their sales? Please share your thoughts below.