"The most basic hat (a ribbed band, then stockinette body and simple decreases) with worsted weight yarn takes me about three hours if I am doing nothing else, and usually only requires one ball of yarn. So that’s $30 for labor and $10 for supplies. I know there are brands out there who get away with charging $40 for a hat, but those are usually big name designers, and the hats usually have a design in them.
In fact, if the hat has some kind of pattern to it — let’s say lace — that will increase the cost greatly. It might take me seven hours to make a complicated item. So with the yarn cost the hat is now $80. A scarf with a complicated design might take twenty hours of labor and two balls of yarn. I’m not comfortable charging my friends and family $200 or more. And when you get into complicated sweaters, you might be reaching $600 for an item."