Beth: I'm in the process of setting up my shop. However, there are already 3-4 shops selling similar products. And, I sell my hats in a hospital now for $9 each. My fabrics, and special sewing techniques are totally unique in this market, however. Would it be better to offer more sales, or free shipping rather than price my product higher than the competition?

Hi Hospitalhats, I would start by highlighting why your product is unique (much like you did above - with a little more detail) and charge what you think your hats are worth. If necessary, you can always reduce your price later. Some like to include shipping in their price and offer free shipping. Its fine to offer your product either way. Beth

Nothing is more frustrating to me than when people sell their goods too low. Its not that I like spending money, but I don't want to buy from someone who doesn't value their work. Why should I beleive in a peice that the artist herself doesn't value? Will be looking for more articles in this series as you post them! Thanks!

Brilliant article Beth. I agree, it does sometimes feel like there is a culture of not wanting to price adequately. I personally don't sell for the money, however I don't see that as a reason for selling my items short. You're right, you're selling your creativity and people will be glad to pay a fair price for a item that they will cherish. I would rather not sell at all, than let my items go to someone who will not value them as much as I have when making them.

Such a great article. Way too many crafters/artists out there under value their products, work and time.

I agree- too many people under value their craft. I too have been tempted to lower my prices. One year ago their was a fraction of the sellers we have now. Etsy's growth has really made me take a hard look at my pricing. My prices have gone up- but I also try to offer a few lower priced items. In Bags & Purses- I wonder if people really value the work that goes into hand applique and beading, and vintage materials. There seems to be alot of people making great bags for $25.00. How can they possibly be making a profit?

Excellent advice! I've certainly seen nice things on etsy that were priced too low and turned me off.

So true! Thanks for such an encouraging article, I'm always tempted to wonder if my prices are too high, even though I know they're not.

Thanks for the wonderful article! It seems that at least a part of the underpricing and undervaluing of handmade work has to do with the 'Walmart'-ization of goods. Many people expect to get lots of stuff for little, without taking quality, business ethics, and sustainability into consideration. Thankfully, the seeds of change seem to have been planted. The success of sites like Etsy is a testament to this.

Thanks for the great article! I'd love to hear about recommendations for how to actually price your items - a gut feel "market value" sort of system, or a calculated time + materials + markup system?

Good article, I look forward to reading more!

I agree with all the points of this article. Hopefully more people will read it.

Wonderful article. I wish more sellers would read this.

Well, that clears up all of my pricing dilemmas. Thanks.

pricing is one of the biggest internal dillemas I have. More people need to value their work. Thanks for the article!

This is a tricky, but very important area of business. I recently raised all my prices based on a formula that I worked up, which included my time (including time spent picking out fabrics and driving), creating the item, the cost of materials, listing fees, selling fees, etc. I tried to take into account all the "costs" associated with making my items. I was way under price. So, I raised them. I haven't sold anything since my prices came up, but I'm holding on.

I wish everyone read this article =)

People tell me all the time that I underprice our items, but I'm still afraid I'll lose repeat customers and those who have marked me as a favorite if I start raising prices! This article has given me some ideas, so I will certainly go back and think about whether or not to do so. Thanks!

So very true! If we as sellers don't value the time and creativity we sink into our work, few others will! It's pretty much Marketing 101 all over again. People are all aspirational and want to "trade up" to what alleged bigger, better and sometimes out of reach. If both were free, who would opt for the Camry over the Lexus? ;-) Great piece! http://urbanislands.etsy.com http://fiercelystrategic.blogspot.com

I really have a hard time with this. Especially since some items in my store are relatively similar, but due to materials the cost is different. And when friends ask me to make something, I low-ball the price. How can I get out of this rut?

Great article! Thanks for bringing up this subject. Very few realized how much time it takes to make a handmade product. I do my things for pleasure, so it's very hard for me to put the price on them. But definitely I'll think it over. Thanks!

Great article! I recently listed 4 items in my shop and the most expensive item has the most views.

I'm so glad I found this article (and the others) *before* I set up my shop! I originally became interested in jewelry design years ago when I'd see nice-enough mass-produced items in stores that were charging quite a lot for them. Being on a tight budget at the time, I realized that I could probably make a similar style item using better materials for less money (and have enough materials left over to create gifts). Over the years, I've studied, honed my skills, developed my vision...but it's sometimes challenging not to lowball my pricing.

Helpful article...it is always frustrating to me when I see "slave labor" prices...Like when you know you can't even buy the materials for the price...such a hard balance to reach though...but some shops just seem WAY too low...they are handmade items afterall and NOT Wal-Mart...it seems like most etsy folks understand this concept...

The only problem is if a seller places a high price on their product and doesn't explain how many hours, amount of fabric etc. went into making the item, the buyer can feel cheated. The only way sellers can up their prices is if they explain to buyers what happens with the money, eg: inputs and outputs.

Thanks for this series. Pricing is definitely a challenge for me, but I keep hearing the same things. People seem to question value when the price is too low. Hmmmm....

Very useful information. My struggle with pricing is that most of my friends have modest incomes, so they think my pricing is high. I'm trying to be competitive with those I admire on Etsy who have a similar product. Hopefully, people will like what they see :)

the price was my first concern on etsy. so i posted on the forum, and met friendly people who gave me the material+ hours of work formula. it's sometimes difficult to evaluate the price of something made for the pleasure. i have two ways of deciding for the price beside the above formula: 1- ok i made it with love, but for how much money would i accept to part from it? give it to a total stranger? 2- :) well, i ask my mother how much should i price the item. she really likes what i do, and she always feel sorry if i underprice my item. and for her i always underprice it. now i found another tip: ok, i have one item which took an awful lot of time to do, which i had to price it high regarding to me. then for those who can't afford it but like it, i make another simplest model, with the same spirit but ten times cheaper, which will cost me ten times shorter to realize. and with this i found a peace of mind concerning the prices. well i know i only have 4 items for the moment, but i thought a lot about this subject.

jules9105, There are a couple of ways you can show the amount of work you put into the item and the quality of materials that you use (so you don't leave people feeling "cheated"). 1. Explain the process or materials in detail in your profile or item description. 2. Show the process in pictures - maybe on your flickr stream (hopefully we'll have a place to do this in your profile soon). 3. Do both 1 and 2 on your blog Good luck. Beth

I think its all to easy to find fault with your own work, when someone else may think it's great, thats what makes it hard for me to come up with the right price for things.

This is a great article and conversation! I recieved some excellent advice from a fellow artist about pricing...That price not only reflects time and materials, but also all of your training, life experiences, trial and errors...etc. No one is born with the ability to whip out some great art or hand sew an evening gown. It really made me rethink how I price!

This article was a great confidence booster for me! I haven't sold anything yet (just opened shop) and I've noticed that my photographs are priced a bit higher than many of the other photos I've seen... but this really is a case where you pay for what you get. I'm offering a premium product that I believe in and know is worth the asking price. Thanks for the boost!

Lullabybunny - I know what you mean, sometimes when I create something I realise how I can improve it next time and am left feeling I should price low! But this article/convo has been really useful, I think I'm going to have to be much stricter about how I work out my prices!

I found this article both informative and interesting. Being new to Etsy it is hard to gauge the competition and yet not to sell yourself short. Most of the time, they are OOAK, that certainly should account for something. The difficult factor in pricing is the time spent in creating, designing, and making the item. Frequently, your time is not worth very much to others. The puzzling part of all of this is I have seen identical items in different stores and have seen many sales in some and very few in others. Therefore, it is advertise, get noticed, develope repeat customers etc.

I know as a student, my expenses and quality are not equal to the folks who have been doing this stuff for years. I specify in my shop that I am a student and this is student work, therefore my prices will be a little lower than other folks. I wonder how much sticker shock folks will have after I graduate and have to pay my own utility bills for the kiln and include that in my prices. I hope by then, my work will be worth the higher prices.

Such a great article. I am a professional photographer by trade buti am new to selling on etsy...but i have to admit that there is some STUNNING handmade items i have come across and my JAW DROPS when i see how little they charge for such amazing works of art. I hope this article gives those who might be afraid to charge what they are worth a nice little boost of confidence..YOU ARE WORTH IT! =)

Hi! I have been Selling my HandPainted ArtWork on the Web now for 3 years. And recently joined Etsy. As for any WebSite, You as a Seller need to take into consideration, not only what You feel your ArtWork is "Worth"( 3X plus materials, labor, fees, etc), but also the "Market Value"! If you do your Research, and check to see what similar items have recently sold, at what price, and how often they have sold, you can then get a pretty good idea of what the "Market Value" of that item or similar item is. Unless You have an item that no one else Sells, you can then pretty much decide what the starting Market should be. I totally agree with "You Get What You Pay For", BUT if the "Market Value" has decided your item or a similar item is only worth a low price, then you are Not going to get a high price for it, unless YOU are Willing to Wait! We as Artists can Price Our ArtWork accordingly, but the "Buyer" is really the one who determines "Our Worth"! I know that sounds like a contradiction, But in reality, it is true. Regardless, Don't Sell yourself short! If you as an Artist, Crafter, or whatever feel that "Your Work is Worth More", then Price it that way! Just believe me when I say the words "Starving Artist", as most of us True Artist do starve. But when that Buyer comes along who sees Our Work is Worth every bit of the $300 we are asking and Buys it, It makes the wait "Worth While"! You know they say "All Good Things Come To Thoughs Who Wait"!

Now that I am finding my way around Etsy more, there is more I find to pay attention to. This article and the comments grabbed my literal interest because I just sold my biggest dollar sale since I opened my shop. Moreover, since opening my shop, I have had minimal sales. This is the piece: http://www.etsy.com/view_transaction.php?transaction_id=9223256 When I saw I had this sale of my most favorite creation to date, my eyes filled with tears, my palms started sweating, my heart pounded up into my chest, my breath was labored, I woo-hoo’d several times, and after my muscles jumped for joy they hurt! So, here I sit a few days later pondering reading this article and the responses. Get out the paper, calculator, and pen. This piece sold: $162.95 Shipping cost: $2.26 w/delivery confirm Etsy fee's total: $6.97 PayPal fee: $5.03 Materials: $40.00 Leaving $108.69 I calculated approximately 10 hours of labor, thus I was paid $10.87 per hour. NOT including the shopping, driving, storage (had the centerpiece for a year), designing, and whatever else I may not have thought of. How about a percentage of my electric bill, water bill, food & beverages, utilities, telephone, classes, reading educational beading materials, mortgage, taxes, insurance, etc... When looking at it this way, I should just have sent the buyer $200! Ugh, ...Help

I do a lot of custom work, in fact that is a majority of my business income. This gets really frustrating because I don't want to overcharge folks, but there just doesn't seem like a fair way to set prices for custom work and still have a steady customer base. I want to be affordable, but still maintain an aire of quality and respectability. I love doing commissions, but I don't like eating the cost of my time.

Believe it or not, my 21 year old son is the one who helped me realize that my time is just as valuable as the materials. NEVER sell yourself short! If you have to sit on your work - do it!! Ditto, by the way, to what jcades said. I, too, had a hard time seeing the worth until my son said this. I am not even a seller (YET) so take it from a customer.

Beth, I feel like I have overpriced. My husband has encouraged me to go over my cost and pay myself. So, I've been paying myself minimum wage per hour it cost me to make my product. I only have 2 items in my shop and have lots of views but no purchases. Have I overpriced?

I'm so glad I found this this morning. I asked for a shop critique the other day because I wanted thoughts from more experienced etsians. And underpricing was something that came up. All this is really making me think. Separating out the strand which is how you really value what you've done and the time you have used, and tying that into the price you ask - this is a huge new idea for me, seriously! The issue for me is the balance between the time and care and love I put into my stuff, and what the result is. Or at least, what I perceive it to be. Or what I might think the "market value" might be. Blah blah! Good to get it off your chest!

Thanks for this article. I used to price things way too low - paying myself less than minimum wage for my time and not even taking into account all the indirect costs.

This is a great article! What do you think about my pricing? I just lowered it, but now I'm thinking I should have kept the original prices!

I sometimes find pricing my artwork a challenge. I want to offer a fair price at the same not undersell my work. Any tips for me?

I, like almost everyone here, have a hard time pricing my work. I certainly don't want to underprice, but where is that magic line, anyway?? I have done all the calculations for shipping, but so much harder to do for each piece, and even trickier for prints of those same pieces. Any advice?

I really liked the article but am still having a hard time deciding if my work is underpriced. It is all one of a kind pieces and nothing to compare it to so I just charge what I think is right but many people seem to think my work is underpriced.I have looked at many pottery sites but still don't have a good feeling about my prices. Can you help me?? Squeeky 001 in Oregon

I am glad I found this article. Besides the article, reading the comments really opened my eyes. My plan is to open my shop this weekend and I had planned on keeping my prices low, enough to cover costs & a bit of my time. Not that I undervalue my work, I just want people who don't have a lot of extra spending cash to be able to afford my jewelry. Is it wrong to think this way? I value your input since I am totally new at selling.

Hey Beth, someone send me this article after I voiced my frustrations on this very subject. There is a lot of comepitition out there for the products I make. Mine are made to be strong and durable, they are made to hold up, last, while being pretty and fun. I see people selling similar items that just aren't going to hold up and people are buying them and paying a whole lot more than I have mine priced at. I want people to be able to afford my items, I want them to be enjoyed but, I am afraid that my lower price is hurting me. Quality doesn't have to cost a fortune does it???

Beth, This article is fantastic. It gives me the validation to trust myself and honor my work by not selling too low. I just had my first Etsy sale this week for the price I believed in. I jumped up and down laughing with joy. It has been a great lesson as an artist to value myself and my work. The realization of success as an artist has been a lifelong pursuit. I am living the dream in a bigger way now. Thanks for the platform and all the support. I can't wait to read more.

I am in the midst of changing my pricing for my cards. I spend alot of time making them, taking better photographs (thanks to a storque article, i made the front page YAY), and listing. I am taking the leap and charging a little more to see what happens. Should I address this change in my shop announcement? Or is it best to just change without explanation?

It does seem like the first thing you think of when you're not selling anything is that you're prices are too high, but there are probably a lot of other factors we don't think of, like timing and patience, for example. Handcrafted work has value in a lot of ways and getting a fair price is one of them. The following is one of my favorite quotes from a book called the 'Unknown Craftsman' by Bernard Leach: Why handcrafted? “Mass produced work has its place, but it is missing something essential that is found in handcrafted work. An intimate expression of the spirit of its creator, the heartbeat. It allows for enthusiasm and play of nature, a chance to experiment and make mistakes and grow. Good work proceeding from the whole man, heart, head, and hand, in proper balance...the relationship of truth to beauty -- the seeing eye.” (Bernard Leach The Unknown Craftsman, p.95.)

I thought I had overpriced the first item I listed so I lowered it. I'm glad I read this article before I start pricing the other items I want to add. I make a lot of one of a kind items and it really is difficult to figure a price when there isn't to compare to. Thanks Beth for giving me a formula and for telling me to value my work.

In addition, a seller who prices items extremely low doesn't do the rest of us any favours either! I came across one who has put summer items on sale because of the change of seasons, to get them out of the workshop. Why not aim for the southern hemisphere? We're coming up to summer, so I am putting winter hats up for northern hemisphere folks. In our winter, I'll have some, too, but will also be able to sell here in brick-and-mortar shops.

Thanks for this article. Sometimes I wonder myself, because I see many jewelry designers with very low prices and It makes me wonder if I am a slow maker. I use a pricing spreadsheet that I bought from an artisan jeweler and it gives me many breakdowns for my pieces including wholesale. Sometimes the prices seem even high to me so I lower it. Thank you again.

Timely article, I've just spent hours repricing some items to be a little more competitive with what I see SELLING on Etsy. I do often wonder - do most of the other jewelry sellers also sell wholesale? If so, they must be only covering the cost of materials with no compensation for time. I am aiming to make some money so that I may continue to do what I do, but the pricing still remains a mystery to me....

I agree with RoseCottageTreasures regarding the market value concept. That is one of the key concepts in economics. You can spend hours of creating something, but if the market does not value it, you'll probably either end up waiting for when the market will value (like Van Gogh's pictures that are valued hundreds years later) or make a clearence and start over, trying to identify what people on the market not only need, but also are willing to pay for. Of course, not everything that bad when it comes to the market challenge. Any market is not static and it can be influenced by a variety of forces. Being attentive to those forces as well as influencing the market through a balanced marketing approach (those 5 P's of marketing!) should help to achieve some confidence in the market place.

I love Etsy. I feel with everyone else about pricing, but have not really had a problem with price. My numbers are low here, but when I talk to the owners of stores that my things are in, they are surprised my things aren't priced higher. It really is about percieved value, no matter how cheaply it was made. I make molds of everything I do, so my prices are pretty on target, but I remember when I was making all the things in the store from scratch and people would balk at the price ( which was waaaay less!) because at the time it was just unplated brass. Forget that I made it BY HAND!! You also have to think what category you would like to be in, price wise. I like to think of myself in the high end costume jewelry world. I wouldn't want to make anything cheap and be percieved as a cheap jewelry designer.

An interesting article. I was talking with some people in the forums about this recently. They had posted comments similar to the sentiments in the article, which really made me second guess my prices because they were on the low side. I asked if they thought my prices were too low, and they said yes, that I definitely should raise them. I guess I was undervaluing myself, because the quality of my work is very good, I make sure of it. We shall see the effect it has on my sales (hopefully it's a good one!)

Thank you...as an artist/painter I encounter those who would like to purchase my work for a little of nothing...others are willing to pay the modest prices.

I have always tried to price my items by what I would pay for it retail. On my hand made pendants and other items, I know they are low, but I want them to sell as well. Aunt Sue

Beth, I tried to lower a few prices but it didn't result in any sales. Would it not be a good idea on your part, a person who has a talent re prices, to tell Etsy shops that they are asking too low a price?? That would be really kind.

Great article. I am new to Etsy and need all the help I can find. Pricing is tricky I am glad I am not the only one who has trouble with it.

Thank you so much for this helpful article. I think about my newly opened shop constantly and was wondering what I could do to improve my shop and why I have not sold anything since I've been open for a week. I've been learning something new everyday and this article was perfect as I was just thinking about pricing all night. I'm glad to hear what you mentioned in your article is exactly what I was thinking. Thanks again Beth for the reassurance!

Yes, I have trouble with the pricing aspect too. I really enjoyed this article. I think it addresses something most artists have problems with. Maybe that's why other people seem to have no problem selling my stuff! They don't see the flaws. ;-) Thanks for the reassurance to price more in line with what goes into making handcrafted items.

Thank you. This is motivating to have confidence in the products that each Etsy seller creates. As artists we all don't see our work objectively and need to respect our creativity each and every day!

Thank you for the great tips and information...pricing is an important part of any business. Rock on Etsy!

Interesting article! I use a spreadsheet of my own devising to price my jewellery. (I used to be a bookkeeper!) It takes everything into account and sometimes I think "nobody's going to pay that!" but they do! Sometimes the system comes up with a price that I think is too low because the piece looks a million dollars! Then I go with my gut instinct and price it upwards. Also, I never reduce prices and have "sales". If it doesn't sell it goes in my jewellery box or it's taken apart and I make something else! You have to stick to your guns and not undervalue what you do! Etsy is still new for me - who knows what will happen!

I also am new to Etsy and am having a terrible time deciding on pricing. Therefore, I chose to go low on a couple items to see what happens. Unfortunately, I have not received too many views even at these low prices. So I am holding off on putting any more items up for sale until I have a better idea. I am finding that experience in web selling is difficult but Etsy is such a great opportunity. Thank you!!

I had this same discussion with a friend recently. She marks things up 3-4 times. i.e. If she paid $5, she charges $20 and up. I struggle because I am self-taught. I look at other jewelry pieces and their techniques are solid. Does technique and years of experience also calculate in the cost? I am with you PortrayalsinGlass. Hopefully-I will list more in the future. Any great tutorial places on Etsy to learn more tricks when designing earrings and necklaces? Thanks!

Great article. I don't want to sell myself short on all the hours I put into my work. This is the advice I needed as I set up my new shop.

This was really helpful. I have sold my soaps for way undervalue in the past, They are great and I use top quality ingredients, so I really do need to charge what they are worth if I want to keep making them.

I've just joined Etsy, and whilst I have no problem pricing my creations for my real-life shop, I find it very difficult here. I'm in the Euro-zone, so with the conversion to dollars, my usual prices seem so much higher that they're unreasonable. I lowered them, but am uncomfortable with what I'm left with. What do I do?

Hello fellow artisians.........here is my two cents about pricing your creativity/time/materials/design to make your creation. SO much comes to mind here as I read these comments. A few quotes come to mind " A man never appreciates anything he didn't have to work hard for to get" People will always place the value you place on an item. When I'm working on a project I decide in the middle of it what my price will be. How many of you have seen a trinket you just had to have, no matter what the cost you bought it. Those are the customers you want purchasing your items. Stop selling yourself short........I refuse to haggle with people who don't take into consideration the time and creativity that goes into one of my designs. Especially when they know they can't get it anywhere else they pay your price or they don't get it. My specialty is fashion, All my crocheted tops are my original designs. I never learned to sew so I started 6 years ago crocheting halter tops with beads, I charge $225.00 a piece that includes materials, and my time. It takes me a week to complete one. It takes roughly 40 hours to make one. When you divide 40 by $225.00 it comes out to $5.63 an hour! Now that's way under minimum wage! So am I under pricing my halter tops???? absoulutley! 40 hours multiplyed by 8 equals $320.00 So I will change my price since I just opened a few days ago. In my heart I believe that is a fair price because we all as artisians should get paid at least minimum wage for our labor if not more. Given if some famous designer's name was on it like Valentino it would cost you $1000.00's to aquire it. I'm not Valentino, but I'm just as talented with my mind & hands as he is designing & sewing. I just don't have the fame behind me. If you feel your charging to little, listen to your gut feeling and charge what you'd expect to pay for it after all you know the time that goes into it so charge accordingly. I've been crocheting for over 30 years and never have I seen designs like mine so I know I have something unique. People may try to copy them but it would be difficult since they don't know my pattern and certain tricks I use in my designs. So every one with that said, keep your head high..........go with your gut feeling and price your work accordingly. Be patient and ask God to bless your work!

Informative article Beth, appreciate your time and thoughts and thanks to all of your for reminding me what I keep trying to get across to my daughter regarding her artistic creations in not selling herself short!

My problem is that being a senior citizen and living on a VERY limited income, I tend to think how much I can afford to pay--which isn't much. That is a trap. I am shocked at the price others are willing to pay and they value their purchases much more than something "cheap". So I must quit judging others by my own circumstances.

I'm a little bothered by this article. I haven't set up my shop yet (need to build solid inventory first), but I can't imagine pricing my items high, especially as it is not my main income. I look at a lot of items on Etsy and feel that they are overpriced. But then, I'm the kind of person that gets my clothes at Salvation Army once a year. If I were to charge more than $15 for any piece of jewelry, unless I'm using 24k gold, I feel like I'm cheating my customers. I make $7.75/hour at my main job, why would I expect MORE than that from a hobby?

Gee.I read this article and upped my prices immediately! Haven't renewed them only because I'm waiting for my printer to get samples back to me for the paper I want to use. I agree some do price their items way too low. If I have a piece of art work and I go to the best printer so that I can offer my prints at a reasonable rate it does disappoint me seeing others sell them $10-15 cheaper for larger sizes....I do love art! It is my passion, but I also need to make a profit at the end of the day.....T

Your article reminded me of a conversation I had with my former Husband's Aunt, who, upon seeing the Hand-made Christmas stockings hanging on our mantle remarked "gee.. you could make and sell those." One cross-stitched, and very intricate stocking had taken me a year to make (after my full-time job, kids, etc.) So I replied: "well, let's see.. I've got what totals to a profit sharing year's time (I was in payroll then) into making that." What do YOU suppose I ought to charge for it?" Etsy is NOT Wallmart, or I'd be living in China working for slave wages and living in their housing!!!!!!!!

Thank you beth for the invaluable info! it certainly helps those of us who are new to etsy ! keep up the great work.

I think we need to remember that the reason people shop on Etsy is because they are shopping for unique handmade items they can't get from a chain store! NOBODY makes your art like you do, that is why it is so unique and valuable, so it is worth charging what it is really worth to you. A lot of us spend hours of our time making the most beautiful items which we then panic about selling and charge prices that are way too low. If we ALL price our artworks based on what the materials really cost, and what our time is really worth (you could have spent those 10 hrs with your family, or at the beach or a museum instead of slaving over the crafting table for that miserable $50 sale!) then we could invest more time and money into our materials, our finishing and improving our craftsmanship, which is the goal for most of us! So stand firm, keep your items priced at their genuine worth, and make your artwork rewarding to both create and sell. Nothing is as deflating as seeing your work of art go out the door for the price of a burger combo or a movie ticket! Brad Sugars writes some amazing books with his Action International franchise which are worth reading to remind you of your value, to develop your point of difference, pricing and profits, and to retain and grow your repeat customer database, check them out!

I am going to open a shop soon. I'm very excited about it, but BOY, do I have a lot to learn! I really appreciate all the help there is to get us 'newbies' off to a successful start.

My husband has been saying I need to lower my prices in my fairly new shop in order to get more sales. I feel my prices are very reasonable. After reading the article, I will keep the prices as is, with an incentive i.e. "buy one, get a gift". I like the idea that others will value our work if we value what we do.

Too low prices drive me nuts. Thanks for doing all these articles on pricing.

Thanks for all this pricing advice. I have contacted many shops to ask how they were able to price so low. Most of the time I am told that they craft for a hobby and only look to break even. When I go shopping at the stores, I always look to see what they charge for their beaded necklaces and earrings. It's always high and for inferior quality and in mega quantity. You really need to realize that your product is designed with much thought and love and only one of a kind. I have been crafting jewelry for over thirty years and have never duplicated except when I first started learning and working for someone, but no more. I wish everyone much success and for me too. I sure could use the sales. Blessings, Jeannine

Thank you for the great article! It has been very helpful, however, I think I may need more advice so I hope people are still reading this article. I have been selling (or trying to) my drawings and paintings on Etsy for a month now and I know this process takes time, but I feel I have gotten a great amount of views for the little amount of time I've been selling, but no sales. I have never sold my work before and figure that being a an unknown artist I should keep the prices low. I do have a couple at a higher price because they are in large frames. I was hoping maybe someone wouldnt mind taking alook at my shop and giving me input on whether my prices are reasonable or not. I honestly am not sure.

I haven't opened my shop yet. I make batik patchwork baby blankets. They are selling well at a local gallery and I suspect they are priced too low.. I'm not sure what price to ask. I figure the cost of fabric and supplies but I am not including all the time it takes to make each unique blanket. I have so enjoyed the process of developing the pattern and selecting the fabrics for each piece. I do not want to undervalue my work.

I think money is a tough topic for a lot of people to deal with, what a great topic for an article and so very helpful. I see a lot of incredible workmanship here on etsy...and low pricing is common.

I have a really hard time with pricing because I'm very frugal at heart! I never buy new if I can find something second-hand, and my usual thought at craft sales is "I can make that!" It's tough! I usually ask my sister-in-law the shopaholic what she'd pay for something so I can get an idea what to charge :)

I make items that children use at Australian kindergartens and schools, such as library bags. Even though they are very neatly sewn, generous in size and most likely worth more than I charge, I deliberately try to keep my prices as low as I can afford to. This is not because I don't value my work. It's because I'm aware that often library bags are compulsory items that parents must supply for their children, regardless of whether they are financially comfortable or are struggling. I wish that every child could have nice things at school, not just those whose parents are well off. How do I get this message across to potential buyers? I sell a lot of library bags (and other things) at markets, where people can see the product and the quality. But I have not sold many online. I am hoping to generate etsy sales by promoting my etsy shop to my happy personal customers. I don't want people to buy mass produced chain store rubbish because that's all they can afford. How do I explain that my low prices mean that I think every person deserves something special, no matter who they are?

We really enjoyed this article regarding pricing. We just recently opened our Etsy store and felt comfortable with pricing because we have been practicing interior design in NYC for years, and knew our experience and sourcing was valuable. When using the best textiles, or materials in general, plus hand labor, your costs are going to be on the high side. We have always believed, you get what you pay for. We have learned people are willing to pay more for the finest quality and uniqueness of an item.

This is great advice! Thank you! I kept wondering if I started my prices too high, even with my 25% off sale, but I just couldn't bring my prices down because I really value my pieces. It's true that the price can devalue the item. I've seen really cute items on Etsy that were so low-priced that it made me wonder if they really were as cute as they looked in the picture.

This article sure is heartening. While many people push their sales by deflating their prices, i'm sure there are ways not to shortchange yourself and your customers, like offering free shipping over a certain amount of stuff ordered or free gift. i think having the customer's interest at your heart as well as your own integrity is the most important ingredient to selling/buying happy. having sold my self made bows to people for over a year outside now, i think a reasonable price is key. i do not overvalue my items and i believe things that you like can be affordable. knowing that my customers like my items gives the artist's satisfaction to me.

Thank you for this advice, I am new to selling my creations although I have been making them for years! I have unique and custom jewelry and clothing. Thanks again http://www.etsy.com/shop/medievaltomodern

I would be great full for any advice with my shop in pricing or otherwise Thanks a lot for your help http://www.etsy.com/shop/medievaltomodern Chris

Well, here I am with my 2 cents: I've had a very hard time with pricing. I really want to get my creations out to people that love them, and want them to be 'affordable'. But, I also think I'm doing stuff that other people aren't necessarily doing. So I am trying to tier my pricing, and have different levels of products available. Something for everyone, if you will. It's VERY hard to really pay yourself a fair wage for not only labour, but creativity. ANYONE can go out and buy something at Walmart that looks cute at first glance, for a very cheap price. But it's made in a sweatshop, and made of inferior, and unremarkable materials. So it's not our job to be in competition with Walmart. I am really trying to value my creativity, and pay myself a fair wage, but am constantly trying to straddle the "affordability" fence at the same time. It requires some patience and thought. Keep plugging away! If you offer your customers a large enough variety of things, and price them according to 'materials + labour/time + fees' and it seems a bit high....well, that is the true price of something. There is a reason why Walmart can price things so low. SOMEONE is paying the price of that item, somewhere. It may not be the buyer, but someone is paying it. There is no shame in making something with your own hands, and sharing it for a decent price. So goes my little inner "pep talk", constantly! Like I say, I still struggle with it too. But you do just have to make up your mind, and go for it sometimes. Have fun out there, artists and creators! :) Heidi (aka AlpineGypsy)

Thanks for your input. My girlfriend seems to think that my prices are to high.. My comment to her is "I spent 4 or 5 hours on this Im not going to sell it for $10. If nothing else I give it away as a present.

I had some trouble making my mind about pricing too! some of my items come from Guatemala and didnt feel confortable giving for such a low price as i had thanks a lots etsians! Hope to make some sells soonhttp://www.etsy.com/shop/popolvuh

I will agree with most of the post some, soame items are too low and some are over price tbut sometime it is dificult to really price when you spend time for shoping,design, color and material any one have more sugestion thank you Also great article

I'm having some difficulty with pricing, even after reading through this series. (I'm new at this, and don't have pictures up yet, but I will by next week. Just for reference, each item is unique, and 100% hand-stitched.) My problem is: If I go with the 'time/labor spent+cost of materials' model, my items (specifically, bags) would have to be priced at about $900.00 each, if not more. To me, they're definitely worth that much, because of how much effort and creativity I put into them, bu they don't 'look' like $900.00 bags. I mean, don't get me wrong, trying to be as unbiased as possible here, I think they look really awesome, and quality wise, they're extremely well-built, but the kind of woman who would buy the style of purse I've made is not the kind of woman who would spend almost a thousand dollars on a purse. She'd probably spend about 25-45 dollars on a purse...50-60 if they had just gotten paid... So what should I do? I don't want to short-change myself, but I also don't want to price my items at what they're actually worth and have people think, "Well, it looks cool, but at that price, I could get a leather tote from Gucci," because one, I don't want to come off as arrogant, and two, I want my items to sell. Any advice you could send my way is greatly appreciated! Thanks Tori (VolitionNine)

I'm wondering if my prices at crystalphotography.etsy.com and kriskraftnmore.etsy.com seem reasonable?

Hi Crystalphotography - love your photos! They seem reasonable to me - might be helpful if you say how many you will print in total - quite a few seller do this and it gives the idea of exclusivity. Just a thought! Great initial article by the way - I'm going to go and give myself a high five and value my work higher ; ) Cx

I've been asking all day where I should go to get an idea of how to price items... This article is exactly what I needed to get a grasp on what I'm doing. Thank you so much for putting in the thought and time to this series of articles! :)

thanks you all for your input, I really needed to see what you think. I am new at Etsy since (just been there a couple of months) and always struggle with the price issue. I am not the kind of person who would count pennies to make sure it's accurate. I would appreciate your input on my stuff. I get quite a bit of traffic, but slow sales and wonder if it's too pricey.

I'm new to Etsy and struggle with pricing as well. I'm into the paper craft end of things and there is lots of competition out there. I do think that many people under price as I know how long some items can take to make. I feel that I have set my prices according to the quality of products I use and the time I spend making them. However, I have yet to make a sale.

Pricing truly is an art!

I dropped my pricing a few days ago, then I saw this article and now I'm questioning my decision. I caught some gruff from other potters who said that I was overpriced, but I really think I was on par before.... if anyone has any imput on my items or my prices, please chime in and let me know.... Sometimes I feel like I shouldn't be charging for my time since it is so relaxing and "centering" for me to make my pottery... I almost feel like I should be paying for the relief!

i just raised my prices. it's what i wanted to charge in the first place, but i always worry about people who can't afford to buy stuff. i still have to be true to myself and have integrity, supporting others who charge what their products are worth. i just found the sellers handbook, and i've been selling for years. thanks for all i have learned and what i am yet to learn!

Valuable article! thank you! I'm struggling with pricing as well. Have sold some sewing patterns but not hand made items. After reading this article I will re-think pricing. I find that with the vintage sewing patterns the price range is extremely wide and I'm at a loss as to my own pricing. I take great pride in the quality of my patterns and inspect every one for accuracy. I don't want my customers to think they are inferior because of the low pricing. I price low because my cost was extremely low but should I be pricing according to vintage value............mmmmmmmmmmm lots to think about!

Tremendous amount of good information in this article. I was wondering if my items were priced too high and after reading much of this I do not think so, rather some may be low. Thanks for all of the different views on this. I found it to be a good read full of inspiration!

Thank you much !! I am having a tough time on my pricing and this has helped me alot !! Thank you so much for posting !! Reading these are very very helpful!

I am just getting started and have a few pictures ready to open my shop with but pricing is a BIG issue,especially in this economy. I don't want to sell myself and my jewelry short but I do want to make sales. Thanks for all the great articals for us newbies. I'm trying to take them all into consideration.

I sell vintage items - jewelry, collectibles, china, porcelain, and other cgreat vintage treasures. I don't relent on the pricing, but remain realistic. I constantly research items - makers - prices - values - and figure out what sells and what doesn't. Interestingly, if I list a perfectly good, but lesser quality, piece of jewelry for $15.00 and then list next to it a high quality piece for $50, guess which one sells? It sure won't be the $15.00 one (although it's a good piece, with not a thing wrong with it). They skip right over the $15 piece and go straight to the $50 piece. Etsy customers want quality and are willing to pay for it. Be realistic about the market value of what you sell --- as well as the demand for what you sell. If you know the market value for an item is a certain amount, don't relent on the pricing. It may take 6 months, but there will eventually be 1 Etsy shopper out there who comes along and buys it at that price. Every time I consider purchasing an item for re-sell, I calculate the price I'm paying for it versus what I think/know the market value is, what I think the target market is, and then consider how much profit I can anticipate selling it for. It's important to continually research and educate yourself. Know what you sell, know your market, know the value of what you sell, know the makers of what you sell (if it's vintage), and be realistic about the prices you tag your item with. Whatever I buy for re-sell, I am prepared to have it hang around for a while, because I know it might not sell for 6 months. If I am educated about what I sell and know my price is realistic for the item, I know it will eventually sell without my relenting on the price. As I have found, Etsy shoppers don't want a $15 brooch when there's one next to it listed for $50. If I relent on that price and re-list the $50 one for $20, they don't want it.

Very informative article. I'm a new seller and am nervous about everything! Articles like these help us newbies get acquainted with the ins and outs of selling. Keep them coming!!

wonderful article - makes me reevaluate my pricing

thank you thank you!

ahhh...back to my shop to up some prices. Maybe this will cause a change. Thanks for the advice!

Wow! I'm exactly one of those people who won't buy a cheap face cream because the expensive one MUST be better - yet the pricing I had in mind for my items was quite low!! An eye opener, I knew what was written already but I wasn't aware of it....if that makes sense! Thank you.

Artists are always scared to sell their work for a lot of money till they 'get known'. the thought seems to be ...well when I'm known I'll be able to put my prices up because by then people will respect my creations/adore my work/know that if they have a piece of my work they are one up on everyone else.....BUT it seems that it doesn't work that way....every time... Today people want to know right off that they are buying something unique that you have created ...and if it's priced too low they will think that you don't think much of it so why should they....anyway that's what I think...now :-)

Pricing, is very diificult for me, as I sell a living product, I am scared if I price them higher and people kill it it will come back to me. Even though I give detailed instructions. I try and keep prices on par with expensive box of flowers, because i know they will last alot longer than flowers, if I care for it, it will last years to come. I feel the longer established the garden is, the higher the price should be, as it is more likely to continue to thrive. Terrarium making is a tricky business.

I agree, while being someone who works to pay the bills in the real world, my hobbies are still valuable creative one of a kind items and should not be undervalued. I love each of my creations and having them priced appropriately may hurt other shop owner's feelings because they are priced above theirs-I can't help but wonder why they feel their work is worth so little. I see similar items to mine for sale for less than half of my most inexpensive doll and I just have to have the patience to know that someone will come along and find that mine are worth my asking prices.

I just started my shop three days ago. I have gotten quite a few views but no sales, which is to be expected in the first week. I always struggle with the thought of price. This article helps, but still does not push me over the edge to raise or lower my prices. I guess I will try to work out a formula that I can work with for pricing all of my current items and the ones to come.

Thanks for the tips!

I'll try this. It's just so hard to take the plunge of raising your prices. But what could it hurt to try, right?