It’s getting to be that time of year when you think you should be selling more, want to be selling more, gotta sell something….or is that all year??? It is for me, but selling doesn’t always equal profit!
Selling just for the sake of getting a sale, or panicking that your sales are low this week and marking everything in your shop down could be a big mistake!
Have you figured out your bottom line for making a profit? I know I try to ignore this side of things sometimes. I like to believe it’s the creative side of me that makes it a challenge for me, but I think it has something to do with not wanting to take the time to add up all my trips to the store or the time I spend working on my shop while watching TV and cooking dinner.
Time is money…don’t give it away!
Here’s a few ideas to help you get you’re price just right…
- What are other sellers with similar items charging? Yes, I want you to look at other sellers and do what they do! If they have lots of sales and the cheapest price on Etsy…don’t follow them. Got it? Compare quality. Be smart and look around at a few sellers with experience to help you get a better idea of what works!
- How much do you want to charge for your time? Handmade items are special…don’t sell yourself short. Family time is precious and you need to use your time wisely.
- How much will a buyer pay for your item? What would you pay? Be reasonable. Sometimes I see items at crazy-high prices and I wonder if they would spend that much if they were shopping for themselves.
- Don’t sell yourself short on the shipping! I’ve done this over and over again! Taking the time to research shipping rates to other countries can save you the shock at the post office….been there, done that, and don’t want to do it again!
- If you are approached for wholesale orders…don’t give it away! Wholesalers are looking for big discounts, and if you don’t have a plan ready for this in advance you might run into trouble. {That’s another post} Some sellers raise their prices so they can offer wholesalers half price and still feel good about the deal. Whatever works for you!
- Don’t forget to add money to your item for fees and any other advertising you might do. I have small items, but I always add a dollar to cover this. Then when I relist an item a few times, I don’t worry that I’m losing money.
- How much is your packaging? Sometimes the packaging can add up.
- I’ve read that some sellers figure the basic cost of their item and double that or multiply by 2.5…it’s really up to you. There’s no perfect solution, but once you find what works for you and the buyer, you’ll know it. Be prepared to adjust a little until then.
I hope you find something on this list helpful, and I’d love to hear how you figure out your prices! What works for you??
~Kim
Other posts you might be interested in for your Etsy business…
Great points about pricing! So many times people rush to lower their rates or post a sale when perhaps they should even be marking things up or just leaving them where they are.
This is great advice. I do at times under price and loose focus. I have been one I wright my time I spend on things down and figure my per hour I need to make and also add supplies. Many of my items take a lot of time to make.
.-= Jan´s last blog ..Angel wings Stretchy Ring =-.
I see people underselling on Etsy all the time… I sometimes under sell to keep in the game. When I see similar items as mine listed for less I always ask myself how can they afford to do that? I can’t.
.-= megan´s last blog ..Changing Season =-.
Great article. Pricing is hard. And, Etsy is very competitive with some underselling. I really don’t understand how so many ship for free, b/c shipping is pricey!
.-= Amber´s last blog ..Halloween Fun! =-.
Great advice and very timely! It seems like this is the time of year that everyone starts to panic about getting their piece of the holiday shopping pie. 🙂
I’m with Megan. I have had people contact me asking to bump a couple dollars off a price to match a different seller, but I’m pricing where I need to to make my business run.
I also wanted to caution people on the idea of marking your item up 2.5x cost (or any #x cost). If you are making a labor intensive item out of inexpensive materials or a quick, low-labor item out of pricey supplies – – this formula might not work. The paper wreaths made out of old book pages are an example of this. Suppose you bought the book for $0.50 at a garage sale and it took you 3 hours to make the wreath. Following a 3x cost markup, you’d sell that wreath for $1.50. Even following a 20x markup, that 3 hour wreath would still be only $10.
On the flip side, you might make a pair of earrings in 10 minutes using a $20 bead on each earring. 3x the cost ($40) would make those earrings $120. For 10 minutes work, that would seem like a high price.
Just something to consider. 🙂
.-= Catherine´s last blog ..– Monday Morning Deal – =-.
Deciding how to price my items is one of the most difficult parts of my business. I’ve just started to figure it out in my first Etsy shop and now I’m starting over with a new one. When I see people pricing similar items much lower than mine, I think they must know something I don’t, because there is no way I could ever turn any kind of profit at those prices.
.-= Erin´s last blog ..Elizabeth – Blue Crystal and Pearl Flower Drop Earrings – FREE SHIPPING =-.
I agree with Catherine. 🙂 I don’t use a formula for my pricing, but it might work for some people.
When I see people with those really low prices I wonder about their quality. Sometime when you take a closer look you might find it to be cheaply made!
I don’t lower my prices to match, but I do explain more about my materials and the quality of my product in the description. 🙂 Sometimes you get what you pay for, right?
~Kim
Thanks for this post, it was very helpful!
I am so glad I found your blog! I will be opening an Etsy shop soon and I really appreciate all of the help and advice. Thank you!
.-= char´s last blog .. =-.
I was making hair bows that take me an hour+ to make. I hope I don’t offend anyone here. But I was selling them 4-5$. Quality ribbons, about 20+ ribbons hand curled etc..Notice people selling 3 pieces of un-curled ribbon tied to elastic for 8$?! Needless to say, I up’d my prices. This has happened with many items I sell. I feel my product is high quality,time consuming and I charge less than a product made in a minute with a cheap material! What to do?! Frusterating.
I always hear Chelsea Handler saying,”I don’t care if your bracelet made of wire took you ten hours,10 days to make, it’s still a bracelet made of wire.” I guess I price some things, regardless of my time, which, with a family is VERY valuable, at an “it is what it is” attitude…
Thanks so much! I love your blog!
Great article. I know that I have problems with this; I am tempted to lower my prices when money is short, but it devalues my work and really cuts my creative drive down. I also hear these same questions over and over in the forums. Thanks for addressing this.
.-= Holly Storm´s last blog ..Brown and Black Geo Print Cuff Bracelet =-.
I’ve struggled with pricing as well. Desperation to sell can push you to try discounting your items. Some of the work I do is too labor intensive to truly charge for my time and I usually research similar items when deciding on a price. The shocking reality of shipping costs the first few times I sold things taught me a lesson and I will never undercharge for shipping again. The other thing to keep in mind if you are tempted to do free shipping and just raise the prices of your items a bit is that Etsy charges it’s percentage on the price of the items you sell, not including shipping. Including shipping in the price of your item means that you are paying Etsy more.
.-= Karen T´s last blog ..Its a Utah Thing =-.
I price the things I make by adding up what it costs me for the materials and adding in some for a reasonable profit. (reasonable to ME). If someone doesn’t want to pay what I am asking, then I don’t sell that item to them. Period. I couldn’t walk into a store and ask for them to change the price, so why should I?
Oh, and I actually had someone contact me and say “I’m not working right now but I really love your tote bags, can you make one for me for free?” I replied to that person, “I make and sell things to supplement my income. Maybe you should wait until you are working again to buy one.” I could not belive my eyes on that one.
.-= Karen´s last blog ..What A Difference A Week Makes! =-.
Great post Kim….Pricing used to be my downfall, then I finally realized that I was placing way too little value on my time, my art and most of all myself. One day I went into my Etsy shop and raised my prices on most of my creations. To my surprise I started seeing more sales. My couture aprons have become almost collectors items to many of my buyers and it is not unusual for me to list one and sell it within a few hours (happened yesterday). This all began after I priced my items properly. We have to stop the “Why would anyone buy something I made?” way of thinking. You attract what you put out…meaning if you don’t value your art as special…no one else will.
Janet xox
.-= janet metzger´s last blog ..Morning in New England Original Acrylic Painting with Shipping Included =-.
Great points! I appreciate the tips since I always feel uneasy about the way I’ve priced things 😉
.-= Sarah´s last blog ..Merci – a French Thank You Card =-.
Great post!! Your a great help to newbies on Etsy!! Thanks so much for your time!!
GREAT ARTICLE and posts! Kim, you always have such great articles. Thank you so much!
.-= Pam McMahon´s last blog ..Boutique Zipper Pouch – YUMMY Cupcakes =-.
I struggle with this all the time, and I’m so happy to see that I’m not the only one! My family says I charge too much, but people I work with say I could charge more. So I never know what is reasonable for me to do.
Last year I was selling my ornaments for $12 each, and then got SO overwhelmed with all of the orders that came in around November/December that I wished I charged more. I actually had to take a couple days off of work just to finish them all before Christmas!
(I can’t believe someone asked Karen to make her an ornament for free!)
Thanks for a great post!!
*ha – correction on my post referencing Karen’s comment – TOTE BAG – not ornament. 🙂
.-= Samantha´s last blog ..Love Birds Family Ornament – Custom =-.
I liked the article. Pricing is also a concern of mine. I still find it difficult to formulate the right price. I guess I will continue learning from others.
Thanks so much for the info. I’ve been struggling to find a way/method for my pricing. You all gave some great ideas. Thanks!
.-= Leigh´s last blog ..Eco Friendly- Bobby Pins- Hair Clips- Childrens- Womens- Girls- Flower- Wool Felt- Pom Pom- Hot Pink- Berry- Fuschia- Silver- Gray- Grey =-.
I have this trouble with pricing. After counting my materials cost, my labor (which isn’t much), shipping, and a small profit my item seems expensive to me. Not to mention that I’m not really adding into my price the listing fee, etsy fee, advertising and packaging fee, or relisting fee. It just seems that if I added for all that stuff, I’d have an even more outrageous price. I’ve only sold 1 item, but hopefully this holiday season will bring in some sales. Who knows.
I feel the same as Meagan. And also, I set up at a Market Days Sale and only sold $23. There was another booth across from me selling the same items. They were selling like crazy. I heard a lady at a booth beside me tell her daughter that she had bought from the booth across from me cause hers were for sell for .50 and $1. My items are made with high quality and very time consuming. Not trying to knock her products, but mine were made alot better and I just didn’t sell. How do you compete with that? I can’t afford to give my items away!
For years I underpriced myself not just on Etsy but on the items I had in consignment and at craft shows. My husband convinced me last year that I needed to raise my prices across the board. I did it thinking that I could lower them if I needed to. Guess what, I may not have sold as many items but I more than made up for it in revenue.