Could someone give me some advice on pricing?

[PriceEmUp]

I sell handmade hats, I started doing it as a hobby when my daughter was born but my family convinced me to create a page and sell them and so far it’s been pretty good!

I usually use synthetic wool due to it being vegan friendly and it’s obviously a cheaper alternative, however I had offered to source and make a hat from 100% wool when they enquired.

Said customer was happy with her purchase and has now asked if I would do a trade deal, she wants a bulk of 12 hats in real wool in various sizes.

I’ve worked out how much wool is going to cost roughly, plus what I charge for my hats. This works out at £242.

Is this a mental amount of money for £12 handmade hats? I can offer a 10% discount for buying bulk which brings it down to £217.80.

Even a 15% discount makes it all £193.60.

For reference if I weren’t charging for the extra 100% wool the hats would have came to a total of £192 anyway so the 15% would practically mean I wouldn’t charge for the wool..

Can someone share their opinion - does this seem absolutely crazy to ask for?

I’m 24, I’ve never done anything like this so I’m looking for honest opinions on whether you would tell me where to stick it if I quoted you that amount.

Thanks!

It is very difficult to raise prices OP. If a hat is taking you 2-3 hours to make and you have charged this person £18 per hat, you are earning a pittance. I would consider seriously now if you plan on growing this into a business, because you may find that raising your prices so you are earning at least minimum wage at £8.72 an hour, you won't sell any at all and you will forever be earning a couple of pounds an hour. That's fine if you're making a couple a week and you enjoy it, but very different if you suddenly start to sell a lot. You'll very quickly begrudge doing it.
You also need to be factoring in things like product liability insurance, returns (yes you have to accept these if you are not making bespoke items) and selling fees like payment processing.