The second item that the shop owner wanted is a little bag to hold a bar of soap or soap slivers that is also used like a washcloth. She mentioned maybe doing them out of terry cloth, but I couldn't find that in the fabric store here. I thought knitting one would work just as well and maybe better as it could stretch to fit different size bars of soap.
The yarn is 100% cotton - not my favorite to knit with, but likely the best for this purpose. It is worsted weight and I knit it on size 3 needles as I wanted it to start out firm with just a little stretch. When it is wet, it will stretch more. I don't get so excited about seaming knits, so this is knit in the round from the top down and the bottom is closed with a three-needle bind off.
I love the way seed stitch looks and thought the texture would be a good thing for this, so that's what I did for the whole bag, except for three rounds. One round of knit above an eyelet row, then the eyelet row and then another round of knit below it. I thought a little less bulk where it needs to be cinched would be good.
I know already that I will do more eyelets in the next one. There might be more changes as I'm still in the testing phase. I used this one in the shower this morning and really liked it.
Since terry cloth was suggested, I think I'll buy a washcloth and make a little bag out of it and see what she thinks. It would likely be faster to produce, depending on how I do the casing and drawstring.