[Ingrum]

It's actually free. All that you need is your already quested crafted armor.

Just hail the Dwarf NPCs at the inn east of the lake in Western Commons. Find out which ones will give you small crafted armor for your regular crafted armor and hand it to them. You'll get a nicely weight reduced piece of crafted armor in return.

Well worth it if you're small race in my opinion. Just remember that you can't switch it back so you probably won't be reselling your crafted.

Good luck!