Maybe some of you who read my blog can give me a hand. I'm working on those totally awesome washcloths that I want to sell on Etsy. I have 5. I'm waiting until I have 10 cloths and maybe 3 or 4 bags before setting up shop.
Here's where I need the help. I have no idea how much to charge for any of this. I have looked for similar items on Etsy, and the prices are kind of all over the place. Anywhere from $3-$7 for the cloths. I can't remember what I saw for the bags. A couple of the bags were made from recycled grocery bags, but nothing was made of organic or recycled yarns.
The recycled yarn (recycled from the textile industry) that I bought costs me $8 for a 100 gram skein. I made three dishcloths out of it, and had a little yarn left (not enough for I full dishcloth, though). Playing with my patterns, I probably could get 4 cloths out of it, though. The organic yarn cost $8 for 50 grams. I have found a different (and cheaper) supplier for it, though. I still have not worked on reclaiming my own yarn from thrift shop sweaters, so I don't know the cost ratio for that, yet.
I don't want to overprice anything so that people won't want to buy them, but I also don't want to under-price and lose money. I am also very aware that people are sometimes less likely to buy a cheaper item, believing (at least subconsciously) that it has less overall value.
So, that is my conundrum. Thoughts?