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Retail pricing is challenging across all industries — but pricing craft supplies isn't like pricing t-shirts and coffee mugs.
You don’t just slap a price tag on individual products. You have to consider prices for fractional yardage, project kits, and craft classes. And you’re trying to handle all of this while the big-box store down the street runs another 50%-off sale and Amazon undercuts you at every corner.
It's enough to drive any craft store owner crazy.
Luckily, there’s a better way. In this guide, we'll walk you through seven retail pricing strategies tailored specifically to the realities of craft retail.
Understanding Retail Pricing Strategies for Craft Stores
Before we explore our retail pricing strategies and best practices, let's dig deeper into the reasons why craft store pricing is different from generic retail.
First, we need to address the fractional elephant in the room. Fractional inventory, naturally, creates waste. Fabric sold by the yard rarely ends up with perfectly clean sales at the end of the bolt, which means you need to plan for those fabric scraps or bake that assumed waste into your original pricing.
Related Read: Why Generic POS Systems Fail Craft Stores: 7 Problems & Solutions
You also have a few other unique challenges and industry quirks:
- Customers buy supplies based on specific project requirements, not impulse.
- You compete against big-box retailers with race-to-the-bottom pricing.
- Amazon will always be able to undercut you, no matter what you do.
Here’s the good news: You don’t have to join Michaels and Amazon in their race to the bottom on price. Instead, you can create a retail pricing strategy that understands your customers and your store’s unique offerings on a deeper level.
Related Read: How To Write a Craft Store Business Plan: 9 Steps
Customers come to your store for more than craft supplies — they’re looking for expertise, inspiration, and confidence. When you understand that your goal isn’t to be the cheapest, you open up new opportunities for your business.
Now, let’s dive into our seven top retail pricing strategies for craft stores like yours.
1. Cost-Plus Pricing With Fractional Adjustments
The first retail pricing strategy to explore for your craft store is a cost-plus pricing strategy. With this strategy, you add your markup to whatever the product costs you. And yes, this seems straightforward — but in the craft industry, the question of “what it costs you” gets complicated quickly.
Craft supply costs should include an allowance for assumed waste. You’ll have cutting waste, end-of-bolt remainders that are too short to sell, and the occasional measuring mistake. All of this adds up to mean that the bolt you paid $8 per yard for doesn’t actually yield as many sellable yards as you assumed.
Start by tracking your true costs. If you buy 15 yards, but can only sell 13.5 yards due to waste and remnants, your actual cost per sellable yard is higher than your invoice shows. Build this waste factor into your markup before you set your prices.
When this works: Cost-plus with fractional adjustments is your foundation for staple supplies with predictable demand. Quilting cotton, basic yarn, and ribbon are perfect candidates because you can track waste patterns over time and price accordingly.
2. Value-Based Pricing for Expertise and Curation
As we mentioned earlier, you’re not trying to be the cheapest store in town when it comes to craft supplies. But just because you’re not the cheapest option, it doesn’t mean you can’t be the highest value option.
Value-based pricing reflects what your customers actually get from shopping in your store. Sure, they might be able to get the same products for less elsewhere. But when they shop with you, they’ll find a curated selection chosen by someone who knows the difference between good and great supplies, expert guidance when projects go sideways, and the convenience of seeing and touching materials before buying.
When this works: Specialty and premium items are where your expertise adds real value. You can offer pattern recommendations, advice on premium fabrics, and guidance on which tools are best for what projects (and how to use them properly).
Related Read: 7 Craft Store Inventory Best Practices (+ Must-Have Tools)
3. Bundle Pricing for Project Kits
Crafters often shop for all the materials they need for their projects in one go. When you offer project kits in your store, you solve the problem of “what if I forgot something?” for your customers.
The trick to bundling is to create project kits that speak to your ideal customers’ skill levels and interests. Then, you set your price to be slightly lower than what a customer would pay for each component separately. Even a small discount of 5–10% can motivate customers to spring for the whole bundle. And you’re still winning, because bundle purchases increase your average basket size without slowing down your checkout process.
The real advantage is reducing decision fatigue. Instead of agonizing over which threads match which fabric, customers grab the kit and get started. They're also more likely to complete the project, which means they're more likely to come back for the next one.
When this works: This is great for popular projects with multiple components, seasonal crafts, and beginner-friendly makes. If you teach classes, bundle kits for each project work well because students get what they need in one package (and you streamline inventory management).
4. Tiered Pricing for Classes and Workshops
Pricing classes can be tricky, especially when you consider materials alongside the price of the class itself. You have two basic approaches you can take:
- Include materials in the price of the class ticket.
- Require class participants to buy the workshop materials separately.
Both approaches work, but you need to be strategic about it.
All-inclusive pricing is easier for everyone. Students know exactly what they're paying up front, and you don't have to process two transactions. This works best when material costs are predictable and waste is minimal, like for a standard craft workshop.
Separate pricing makes sense when materials vary widely by student choice or when waste factors are high. If students are choosing their own fabric for a quilting class, charging separately lets them control their budget.
Whichever option you choose, be sure you clearly advertise what the base class fee covers — and what it doesn’t.
When this works: If you’re offering classes of any kind in your store, you need to consider one of these two pricing options.
5. Competitive Pricing for Traffic Drivers
You can't beat big-box prices on everything — and honestly, you shouldn't try. But there are certain items customers will price-check, and those are worth matching competitive rates on. Here are a few traffic drivers to consider throwing your hat in the “race-to-the-bottom” ring for:
- Basic supplies like scissors
- Pins and simple needles
- Standard threads in basic colors
Customers know what Fiskars scissors cost at Michaels, so price them accordingly. The goal here isn't to make big margins — it's to build trust and get customers in the door.
Once they're there, make your profit on the items they can't easily price-compare. Specialty rotary cutters, unique embellishments, and curated fabric collections are harder to comparison shop. Plus, customers are less price-sensitive when they can't pull out their phones and check Amazon in three seconds.
When this works: Use competitive pricing strategically on the 20–30 items that customers mentally use as price benchmarks. Price everything else based on the value you provide.
Related Read: Craft Store Accounting 101: 11 Tips & Tools
6. Dynamic Pricing for Seasonal and Trend Items
Demand should dictate your pricing strategy, and the simplest way to start capitalizing on this approach is to use it with your seasonal products.
Start pricing seasonal items at full retail when you bring them in. Serious planners and early birds pay premium prices for the first pick of Halloween or Christmas patterns and supplies.
As the season approaches, you can hold steady or even increase prices slightly when demand peaks. Then, before the holiday season passes, move quickly to clearance pricing to free up space for the next season and clear that inventory before it becomes dead stock.
Trend-driven supplies follow a similar pattern. When a particular craft trend takes off on social media, price those supplies to reflect the surge in demand. As the trend cools, adjust accordingly. The key is to stay alert to what's hot and be willing to move prices both ways.
When this works: This is best for seasonal crafts with clear timelines (holiday decorating, back-to-school), trend-driven supplies (whatever's viral on TikTok this month), and limited-edition collections. Just be careful not to change prices too frequently, so customers don't feel like they're taken advantage of. Seasonal adjustments feel fair; daily price changes feel manipulative.
7. Loyalty Program Pricing
Big-box stores have trained customers to assume they never have to pay full price. After all, there’s always a 40%-off coupon in their inbox. But we’re not saying you should try to compete with blanket discounting (you’ll go broke if you try).
Instead, build a loyalty program that gives those key discounts to your frequent customers without devaluing your regular prices. Point-based or frequency-driven systems work well for craft stores because customers return often for project supplies. When a customer earns a certain number of points, they get a coupon for a discount on their next visit.
You might also create exclusive pricing tiers for your best customers. Maybe your top tier gets 15% off every purchase and early access to new inventory. Mid-tier members get 10% off and advance class registration. Basic members collect points toward future discounts. Everyone feels valued, but you're not training the entire market to wait for sales.
When this works: Loyalty programs are essential for competing with big-box coupon culture. The customers who shop with you regularly are rewarded, and you create sustainable margins with people who appreciate what you offer beyond price.
Implementing Smart Retail Pricing Strategies in Your Craft Store
The seven retail pricing strategies we’ve discussed all work well for craft stores, but the key is to not use one approach in isolation. Instead, calculate your true costs, implement a few strategies, and then monitor your results.
Use your sales data to spot patterns in what customers will pay premium prices for and where they're price-sensitive. Track which bundles sell and which sit on shelves. Pay attention to seasonal trends and adjust as you learn what works for your specific customers and market.
This is where modern technology makes a real difference.
A POS system built for specialty retail gives you the data you need to set the right prices. Rain POS offers a craft-specific solution with features to help you track fractional inventory, build project bundles, manage class and workshop attendance, and more.
With real-time reporting, you can make pricing decisions based on what's actually happening in your store, not hunches or outdated spreadsheets.
Ready to take control of your pricing strategy? Build and price your ideal Rain POS solution to manage inventory, understand your margins, and grow your business.
