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Story by
daniellexo
Published on April 16, 2009 in How-To |
Photo by |
How do you know if you're pricing your handmade work correctly? There's a lot of info out there, including right here in our Art of Pricing series. The trick is to keep learning and evolving, not only in your craft, but in your pricing strategies, too. I've put together three exercises to bring focus to your bottom line. These exercises are here to make you think about your pricing, hopefully they can help you create a formula that works for you. I hope they help you as you continue to work on pinning a value to your items.
Exercise 1: What's It Worth to You?
Imagine if you will, a complete stranger asks you to create an item (something you currently sell in your shop). That's not all, they want you to photograph, list and promote this item as well. Whew! "Is that all?" you ask. No, they have one more request: package that item, print a shipping label and drop it off at the post office. Now imagine they want you to do all this for the price you currently have this item listed for in your Etsy shop. Would you do it happily? Would you grumble? Would you deny this task altogether? Reality check: It's up to you to determine the value of your time and efforts. Make sure you take a step back from your work and your prices and look at it from all angles.
Exercise 2: Get to Know Your Customer
Close your eyes and think about the ideal person you would like shopping in your Etsy shop. How old are they? How do they dress? How much disposable income do they have? Do they shop online? What type of handmade items do they love? Now that you have a clear image of this shopper, ask yourself, "How much would this person spend on a unique item?" How do the prices in your shop compare? If this is a hard exercise for you to imagine, get a clipboard and hit the streets! Find someone who pops out to you as your ideal customer and ask them a few questions. Yes, I am instructing you to talk to strangers. Feeling shy? Get your local Etsy Team together to survey as a group.
P.S. If you are brave enough to do this, leave a comment below and let us know what happens!
Exercise 3: Number Cruncher
1. Decide what you would love your yearly gross sales to be.
2. Figure out how many items you make per week, and how many for an entire year.
3. Divide your gross sales goal by the number of items you can create. (For example, perhaps you work on your shop part time and you'd like to sell $12,000 worth of goods. If you make five items a week, your yearly total will be 240 items. Dividing $12,000 by 240 items would give you a $50 price point.)
This equation will give you a suggestive price. Keep in mind this is just an exercise, some items may be more and some less, depending on time and materials. Also, you (most likely) won't sell every item you make, but with this average amount as an indicator, you'll know if you're on your way to your yearly goal!
Have another pricing tip? Share it with the community in the comments below!
Want another opinion on these tips? Check out MagicJelly's forum post here.
P.S. These exercises were originally publised in the Etsy Success Mailing List. Sign up here to get helpful tips delivered to your inbox twice a week!
| Tags | accounting, Art of Pricing, business, How-To, HOW-TO, inventory, money, prices, pricing, research, Seller Handbook, Seller Help, seller tips, selling |
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270 comments Login to add your own!
zombuki
Ah, always helpful to re-evaluate the price point from a new angle. Thanks for the ideas!
One thing I've noticed is that people at local fairs *love* items that don't move online, and my most popular stuff online sits at a fair - so the customer on the street might not be the best to survey - maybe a mailing list (if you have one)?
Yokoo
AnnieandOlive
Weezawear
Great article! I especially like exercise 2. Now if I can just work up the courage to ask people how much they think my items are worth:)
SundraSandrusi
JenGillette
Exercise 3 is a great, great idea. I can't stop running the numbers in all different ways just to see how they come out!
pengpengs
LaveMeSoapCo
lovelygifts
twiddletoes
definitionofself
ccstar
I appreciate new ways of looking at pricing, thanks!
I'd always thought that you priced by what you had to make on the piece, meaning to cover expenses, labor, and overhead, then adding profit to re-invest in your company and keep, and then finally to adjust by what the market will bear. Here's how I always do it:
1. price of materials in each piece
2. price of labor
meaning, how long does it take you to make the piece assembly style (not one piece at a time, unless that's the only way you do it), at a good level of efficiency.
hours x rate of pay
How much do you think you should be paid, not how much you want. If you hired someone, how much would you pay them to do the same work?
3. overhead - do you have a studio? how much is electricity?
this one's hard, but I just try to keep this in mind while pricing and add a bit more.
add all this up and you have cost. you paid to make the item, but you didn't pay to grow your business. you need profit.
at this point, the price is usually doubled, and that's how you get your WHOLESALE price.
Double this again (because most stores will, and if you ever sell wholesale, they'll be angry if you undercut them online), and you get your RETAIL price. At this point, you may want to add more than double if you think the market will bear and add in for things that you as a retailer are doing to sell the items, like listing fees, promotion, photography. However, I just chalk that up to - I'm getting a retail price, which gives me a good markup on the bottom line cost, so it's factored in.
Sorry to go on, but it's part of my day job as a Production Manager at a jewelry company, so I get a little geeky about number crunching.
tortillagirl
Exercise 2 is an excellent tip. When I was in second year of design school we had a project where we had to design a whole collection for our "ideal customer". We had to fully envisage this person and our inspiration board had to tell the whole story of our "ideal customer", down to what he/she looked like, what he/she did in her free time and what kind of food he/she ate. I envision my ideal customer every single time I conceptualize a new design (and price it!)
minouette
tomatedepingles
Danielle, i signed up for that newsletter but never receive it
(nope, not in my spambox, yup, etsy is in my safe list)
very helpful article!
SteppingStones
THANK YOU DANIELLE!! I'd love to forward this to so many!
You're worth it people!
ScottieinaCanoe
YourTreasuredMemory
violintide
Awesome article! Lots of sellers should find this very helpful.
mazedasastoat
Excellent advice from ccstar, it's pretty much how I work out set prices. I only pay myself a little over the legal minimum wage.
However, for commissioned items I ask a "minimum" price (which is what I'd sell it for online) Then I tell people how long it took me to make & ask them to pay whatever they think it's worth to them. As long as the minimum price is met I'm happy, but I've found a lot of people are really generous & almost all pay me the hourly rate that they get for their job, on the principle that my time making a special item for them is worth the same as their time working at their regular job.
So far, I've never been asked to make something for anyone who's an extremely overpaid CEO of anything, but I can hope! :-)
Mattamorphis
oldworldprimitives
travellingcircus
Great article and certainly takes some of the mystery out of pricing. Thank you!
TheNightjar
this was very helpful to me- money being a sore spot for me all of my life as far as selling my art work is concerned. Thanks!
SprocketsArt
fromlucywithlove
vivilian
formandfunktion
Excellent advice - thank you to Danielle and all of the helpful responses. Doing the artwork feels so easy and doing the math and making some of these business decisions seems much more difficult, so it's wonderful to be able to look through these ideas.
IcingOnTheCupcake
PhotosbyKymm
IceCreamCandy
suzannedesigns
Love it.... anyone out there want to tell me if my PET COLLARS are priced right @ $15 each.
Etsy employees, I'm happy to hear from you too.
Anyone, Bueller?
poppyswickedgarden
Great article!I have a lot of people ask me how to price items so I can just direct them here!
Creativewithclay
allthingswhite
yourcreativeoutlet
Great information that I really find helpful! Thanks so much!
dogties
LeslyeWrytes
BellaLili
If more Estian's read this, their prices would definitely go up. I shiver when I see earrings selling for less than $2. Very informative for people just getting started.
zenblocks
visionquest
great article- mostly things we already "know" but don't admit to oursleves.. competition is rough, but making sales is MORE than just having the "right" price.
hey.. The Price Is RIGHT!! will think of that as i price. carry on!
mfeganart
Excellent article. I am part of a cooperative gallery and we are always listening to the comments people make and evaluating each others work. We help each other with pricing. It really helps. You have to value yourself!
MelroseFields
Great tips. The overhead in packaging can really drive up the price but it part of the overall customer experience. Handmade doesn't have to equate to low price:) It's all about value baby!
papermichelle
Quick and useful ideas, thank you! I think we don't always consider the "whats it worth to you" portion enough.
MooBeeTees
Very helpful - thanks! As a newbie to this you always wonder am I charging too much, too little - it's nice to get some tips on how to find 'just right'!
PhineasandLou
You guys never cease to delight and amaze me! Thank you for this :)
FrucciDesign
308thstreetdesign
Thank you! I'm just starting here and always wondering how to price things... this should help a lot!
dragonhouseofyuen
All excellent exercises and very good points by ccstar, tortillagirl and zombuki.
I read every point made, and I have some work to do aswell! - I particularly like the exercise 2 on envisioning your perfect customer and I do believe like attracts like, whether in minds, ethics or tastes.
I suppose these exercises take the hoping (..I got it right..) out of pricing - I think a harder exercise is taking the hoping (..I get a customer this hour/today...)out of selling
sucree
sandali
Thank you for these wonderful tips !! I will most definitely keep this in mind -- always great imagining who your customers are -- sooooooooo glad that there are such wonderful buyers & felow Etsian out there ;)
beadingjunkee
Great, pricing for me is always hard because making jewelry is such a pleasure for me that I end up feeling guilty on whatever price I end up marking the item at. I will definitely give my shop a look over.
HAREandDRUM
I love exercise 2! My target market is "older" demographic who has disposable income and appreciates quality, OOAK, and traditional design. It's hard for me sometimes to find those buyers on Etsy, so I price instead for the buyers who ARE here. Hmm, does it count as a useful tip?
luxurycardstore
marysminutiae
LushPunk
CutieDynamite
ClareBears
Signs
lucywallis
winners never stop learning!
thank you for sharing your knowledge and insights Danielle
Lucy x
Iammie
wunderkrafts
animalcracker
naturellechic
Great to see a different perspective. Things to consider in pricing from my experience-
We have to value ourselves before we can place a value on our work. We should not undersell our talents. Our products are not simply the combination of costs of materials and time, but what we, as artists, bring to the creation. If our products are original and reflect our "eye" and skill these have to be factored in. although I do not have an Etsy sales yet (just opened this moth) I have years of success with my art, so I know somewhere, deep inside, there's a talent that should be rewarded.
Let's not devalue our art!
ArtMadeByTammy
catsongstitchery
Great tips! Its so hard to price things so I'm not robbing myself but also so they will actually sell!
linkeldesigns
marysgranddaughter
jenniferladd
ovgilliesdesigns
ArrivingAngels
Great article! It certainly gave me something to think about. Lots of good tips that I will try!
Thank you.
jorgensenstudio
Finding out who your ideal customer is maybe too daunting to start for some. It is a big idea to tackle.
One way to start is to sit down and figure out who you are. YOU love the the items you make right? That is a great starting point. What demographic do you fall into. What would it take to turn you into the ideal customer of your product..ie...more money? kids? no kids? where you live? age?
If I made big chunky knits and started with myself as a customer, I would have to think about location, because living in South Florida I don't wear big chunky knits.
Just an example.
Starting with the idea that you love what you make makes it more manageable of a task to figure out your key demographic.
jcjewelrydesign
This is a great post!!! Thank you so much for posting this article~
HomesteadBleu
Perfect! It's my 2nd DAY in the process of creating my store...Whew! Adding my inventory is my next step. This step gives me major jitters, and your article is so helpful.
flamingoalley
meritmarket
littlemoandfriends
Regarding exercise 2 about getting to know your customers. One of the best way to find out about your customers is through the markets too! I did my first market recently and i was able to see my customers (though i already imagined them through my online shop...but seeing them face to face and seeing my target audience was a good experience)
WeeWoodNaturalToys
This is a very informative, thought provoking article, along with the comments, thank you!
I know I am not priced any where near what I "should" be, but starting out, its hard to break in, plus there are so many fellow Estians with such low prices in all genres that they must find this just a hobby,lol! I enjoy what I do immensly, but want to be priced fair to myself, plus fair to my family who gets that much less of my time!
#2 is a difficult one, I will definately need to spend some time on that one!
missrubysue
jodieflowers
FruteJuce
wildstrawberry
jdfootloose
BugPop
Awesome article. It's so hard to get right, but like the 3rd point, thats a new idea to me... x
myglamour
Great article and great points from everyone. I agree with most of you.
After several complaints from my customer about my prices being too high I had started underselling myself to please them. But after carefully considering the cost of the materials, time spent, quality and uniqueness of my work, photography and editing, my talent and skills and everything else knew I was seriously undercutting my efforts as well as my creativity. And, sometimes not even making a profit to make a customer happy and to make a sell. Not to mention that I have to package and ship items, prepare for shows, events and keep my Excel Sheets and personal website updated. So, after taking a careful look at all of this stuff I put most my prices back into perspective as I had them right before. If they want it, they'll buy it. If not, they won't, regardless to what the price is.
We have to be true to our worth and show some respect for our talent and the quality of our work...
Yes, we are in a recession. So, rethink the type of materials you use. Buy less expensive materials: Use sterling silver instead of fine silver. Use gold plated instead of gold filled. Use Czech or Druk beads instead of Swarovski crystals. There are ways we can bring the of materials down but at the same time remain respectful towards your worth.
akane
I'll have to rethink my pricing. I noticed that when I increased my pricing, I actually increased my sales. I used to price it with a small margin of profit to be competitive. Now I truly price items for what they are worth.
People who will buy a mercedes would be suspicious of the value if it were to be priced like a pinto. something the think about:)
QuiltsandQuotes
Thank you for the great article AND everyone who left a comment!!!!! Great ideas and thoughts
OrdinaryMommy
EpicBones
very great suggestions. i never know what to do about pricing. it's always such a touchy subject too. great advice though, i have some number crunching to do now...
rachies
Interesting. See, I love a lot of things on Etsy, but they tend to be about $5-10 out of my price range for pretty much any given object. It's a shame that there aren't more lower-price items so that less wealthy people could afford something handmade. When the average price for pretty much anything is a minimum of $15-20 plus shipping, it's hard to justify a purchase on a tight budget...
greenflagdesign
Well I made books and they really take a lot of time but sometime I put free shipping and also with my new items.
but if I have to sell wholesale is hard to give half of my etsy prices.
fantasticbeasts
Sometimes I wish we'd do away with money altogether, but since it's here to stay, I try to embrace it. But I'd rather give and get things for free; ha, who wouldn't? I try to price things with that irreverence for money in mind... but, then again, I'd love it more than anything to be able to live off of selling reclaimed or recycled goods. I think we're realizing nowadays that actually producing things and incorporating recycled materials is the best way for us to take care of the planet and our human selves.
Anyway, those are terrific exercises. Thank you for another helpful article!
HugsandHolidays
It is a challenge to get it right. I appreciate the term "learning and evolving".
mojospastyle
one thing that helps me is that I price my one of kind items higher because only one person will have that handbag or jewelry and its worth it for customers who want something that no one else has. Plus these kind of items take longer to make too.
BlueberryCream
Interesting article! Jewelry making is a hobby of mine, so i am not pressed to make a sale. But still, these are great points. A nice thought about underselling from akane. It is true that an item that is priced too low makes people suspicious. On the other hand lots of people are looking for bargains. I don't know how to balance these two things...
LeBeadoir
Wonderful article. I thoroughly enjoyed learning from it, and from the shared comments. Great tips for those of us who endeavor to do this for a living, as opposed to just a hobby.
I've always thought I had a pretty good handle on my pricing formula, but this added a few twists I hadn't considered.
Even though I've been at this for quite a while on my own, I certainly look forward to learning more from this community.
J
SquaresOfFlair
Thank you! After doing taxes I realize I'm not charging nearly enough. But the economy makes it challenging to find that perfect price point.
WineCoutures
Really great article. It is such a big deal on pricing items too high or too low. For my wine charms, most people think I should price them for double what I have listed since each one is one of a kind. But because 50% to 90% of my materials come from donated recycled jewelry I figured I could sell for less since I don't have the heavy cost of raw materials to factor in. Still, it's difficult to know what is the best price for anything handmade.
AstridNicoleEtcetera
I really like the exercise 'What's It Worth To You'. Makes me realize what I'll happily do on a daily basis to fill my shop might make me feel 'put out' as a special request. Rather than adjusting prices, I think I'll change my attitude when asked to do a special request!
Good, thoughtful article full of useful information.
isajul
michon
Great article - I crunched numbers a slightly different way recently and came up with total sales amounts per day that I need to reach the monthly income I want from my shop. That way I could see how many items I'd need to sell at different price points, which helps me focus on creating products that fit in with my goals.
muddymuse
BigelowDesigns
AS a fairly new seller(really new to computers!my kids know more than me) This article was wonderful! I know that i am selling too cheap and everybody asks me why! I didn't want to charge too much in case someone said wow that is a horrendice price, so i have always kept my prices way lower than i thought the item was worth. this article has given me great insight of myself and my self worth! I am going to get my family and friends together and do a survey on them! Guess i will see how it works. I'll let you know!
Thank you for giving me courage!!!!!!
brownbunnybyiris
RenJewels
Think I might try some of these ideas. It's such a tightrope to get the pricing right.
sleepymoondesign
hey really helpful tips there!! Thanks so much! I am going to do some numbers now...
bmjnyc
I love exercise # 1. We forget all the different components that go into making a sale. Thanks for offering a fresh perspective on an age old dilemma.
Laureld47
This was helpful, since I am very new to Etsy - I LOVE TIS PLACE!!!!
sage12888
TreeHuggerStudio
CandelariosKids
Thanks so much for such and interesting and helpfull article, am going to revamp my store and this is such a blessing to know. again thanks!
GretasDesign
Always great stuff to keep front of mind. I am constantly re-evaluating my pricing (whether out of frustration or boredom) to find a happy center. Thanks for the fruit for thought!
deesigningcrafts
I just started on etsy and there is so much to figure out. What a great article. Thanks!Its so hard for me to price my things. I always have in mind "oh I wouldnt pay that much...I can make it myself". I guess its not good to think like that way if I ever want to make money. Thanks again for everyones input. I will rethink my business sense.
AmeliaBeth
Thanks for the tips! I've been going back and forth on this since my pendants are now sold in a store and had to adjust pricing to take into account the "middle man."
PhiloBaNa
speciallymade
Thank You soo much everyone I have got some great ideas!
I am new to this, and very excited to get started selling on etsy.
I would love to know how everyone is doing on here, and if the sight is getting more and more popular? I have been telling everyone I know about this sight. I believe hand made is heart made and there is someone out there that will love what you make they just have to find you and visa versa.. lol . just my thought.... Thanks again to all and I will keep reading more every day...
sisterbutterfly
Thanks for using my numbers treasure box for this article!
mazudesigns
Excellent tips. I especially think ccstar has really good advice. Thanks all
jmackgems
cristinadavid
That is really helpful.I was about to start low my prices for the sales comes faster .this advices really help thanks!
thearthistorian
PookaDesigns
Thanks for the tips.. I always find pricing my work the most difficult part of the whole process..
The fear that people will think I am charging too much means I end up paying myself pittance for the time and energy I put into making things, which isnt very rewarding at the end of the day!
LexLaMaide
Vidals
It is so hard when its about pricing becasue you don't want to scare off the people with high prices, specially with this economy, but at the same time you don't want to lower the scale of prices!!
ireneagh
LeapingCat
Thanks much! Exercise 2: Get to know your customer gave me a better insite on my target audience.
Thanks again.
WanderlustBling
Good ideas. I have a horrible time with this and I need all the help I can get.
alankarshilpa
Great Post. The second point -Imagining the customer is so important
Most of the time I settle for the bare minimum thinking that lowering the price would make a sale. But in fact it happens the other way.
In fact when we lower the price we hurt ourselves, our fellow artists and crafts people and also the person who is buying -thinking cheap.
I'll pass on your tips to other jewelry maker friends. All the best- Dita.
Beadsforpeace
Excercise 1 and 3 is a real wake up call for me! Thanks so much! =D
I wasn't all that realistic in my pricing and just settle for minimum, because I didn't really know what I was doing and thought it would make a good exposure for awhile. So in that sense, knowing your shop identity is a knowledge worth exploring.
Good luck everyone! xoxo
ibeautiful
judinewt
Thank you so much for these suggestions! I was pondering lowering my prices on my pastel drawings but have decided to hold off. I would much appreciate it if anyone could give me some value input on my artwork. If you have a moment, take a look and let me know.
KsArt4u
Thanks for the suggestions on pricing.
But - I feel somewhat lost at Etsy.
How will anyone ever find a newcomer:)
Pricing will not help unless we can find a way to bring people to our shops.
Thanks for any helps!
RockettQueen
PortugueseVintage
RoseysWorld
fadaseprincesas
jwwith
Thank so for the Great article, I can get very bogged down with weighing my price options. I tend to sell myself short and I am working on not undercutting my efforts. Wanda Withington,Withington Designs
PoshToshBaby
franreflection
aeonia
Wow...I am totally new to Etsy and I keep checking out everyone else's sites-the types of things that they are selling, prices, shippings, advertising, etc. and it does seem like such a tricky business. I guess that it is always a little bit of trial and error and if something seems not to be working, then you gain a little more knowledge and change your approach the next time. There are some great tips here, and thanks to all!!
thingsbuilt
We've opened shop a week ago and have already had 4 sales! Feedback for our friends is that we our priced way too low. Most have said to double our prices. That seems a bit much, especially since we've already had some sales. However, we're taking their advice, and slowly creeping prices up a bit. If sales stop, we'll mark things down. It really does seem to be an art in itself, this pricing madness. Thanks for the insight.
khakaridesigns
It definately is tricky, especially with my remade vintage charm necklaces...hard to put a price on both the charms and the labor...
LGReclamation
Great Tip ! I am new to Etsy .My big challenge right now is for me to figure out my shipping cost .I bean doing Craft show for 9 years full time and I am making Garden Sculptures which could be a bit heavy for shipping for some of my pieces.
So I have to choice the right piece . thanks again
ParadiseGarage
I have always used ccstar's method. This gives me something new to think about.
craftywoodpecker
It seems like many of us are new to Etsy. Personally, I still don't know how to open a store. But let me give you a slightly different perspective on selling through Etsy. I never thought of Etsy as being a "discount" site. I think I first heard of it on a network TV show. From the beginning I saw Etsy as a avenue for selling well made crafts. Although I have a way to go to establish my business, it's never going to be done on the bases of selling my goods cheaper than my competitor. I know I'm good at what I do, I know I use the best material. Consequently, my products have value and I'm entitled to make a decent profit. Frankly, if I can't get sales through Etsy, I'll try elsewhere.
soph80
Another strategy is to search for similar products on Etsy and see what the going rates are.
Also, if your product seems expensive, shamelessly flaunt why this is so! (ok, that sounded better in my head) I.e. if you harvested the silk for the shirt from your own silk worms that are on a strict vegan diet and require 24-hr surveillance, convey the extra work you put in.
inodaknit
zingdesigns
How timely is this?! I'm just starting to set up shop for my jewelry hobby and was thinking about this exact topic.
A couple things I learned in economics class I wanted to share...since my day job is in finance. Which doesn't mean I have the magic answer, but these are some things I'm including in my own pricing deliberations. Both of these also are some of the underlying things to think about in exercise #2 of knowing your customer.
1. Price to what the market will bear.
2. Price to perceived value.
#2 first. What it cost you to make (material, labor,etc.) doesn't necessarily have anything to do with perceived value. You may think a fair price is...say...$10. Covers your materials, accounts for your time, seems fair. The customer looks at the item and thinks "$10? There must be something wrong with it for it to only be $10." Bump the price up to $50 and you can't keep the item in stock. No change in your costs. No math either. Your price simply now reflects the perceived value of your item.
This does work in reverse as well and gets to the idea of what price with the market bear? Say your costs are $40. In the right market, you can sell your item for $100. In a differnt market, you can barely make a sale at $20. Think about antiques auctions. A baseball card in a furniture auction is just a piece of paper. There is no price that market will bear. Your item is worthless. In a baseball memerobilia auction, it could go for $500. Now, whether $500 is a good deal to you depends on how much you paid for it in the first place. $.50 - deal of the century! $1,000 - either you were had when you bought it or you still don't have the right market.
Up markets, down markets, who cares? Find the right market that will see good perceived value in your item and price it to what that market will bear.
Think about what the market will bear and your preceived value first. Then consider whether you are making a profit. Hopefully it will be an empathatic yes many times over! If not, think about why. Maybe you need rethink your cost structure, what you're trying to sell and why, or be adventurous and to go create a new market!
Tepuisjewelrys
bloominfields
kaycrafts
Thank you for keeping it simple, this information will be very helpful with my selling.
ThreeRedApples
Great article and great posts! Thanks all. As a new seller I also find it difficult to get this bit right.
Personally, I was thinking about going around all the relevant independent shops where I leave (quite touristy), to see if they are interested in my products of course! but also to get their views on pricing.
MichellesCreations68
AWEshop
I always like seeing different perspectives on how to price.
The biggest thing, I think, is pricing what you will feel happy with (covering all costs, of course). If you're not happy or don't feel you're getting what you deserve, it's just not worth the effort! You might as well give all your creations as gifts, at least you'll feel good about that! LOL.
CGDesigns
rockfern
mibellasophia
TheLeafGirl
Thank you for the ideas! Pricing is one of the hardest aspects to figure out. To truly sell handmade OOAK items for what they are actually worth is very difficult. It is hard to get a balance between time, materials, and creativity and then what someone will actually pay for an item. ANY ADVICE IS WELCOME!!
sakizome
Thank you! These were timely and helpful reminders! Much appreciated.
PLJohnsonGlassArt
GatheringSplendor
Lavendermooncrafts
Thanks for the info. I am new to selling. People ask me to make things all the time and after I'm done they ask how much and I never really know what to say. I start normally with how much did it cost me to make it and charge little to nothing over (they always give me more)but I am starting understand thats not all you need to take into consideration.
My question now with the economy the way it is and china imports, How do you price, with pricing yourself out?
dolliecs
Very worth while information that I will put into practice. Thanks very much.
nomadcraftsetc
oldschooltrading
Thank you so much! I'm new to etsy and need all the information I can get. Pricing is one of the hardest factors for me!
Sophiadare
I am new here with my art and am finding it so helpful to just browse the other shops, see the going rates, who has had sales, and with what items. I am looking into smaller items that I can make to still convey my message since some of my canvases are really gallery prices. I am thrilled to be here with all the plethora of talents and creativity and just wish I had more hours in the day to study and learn-hopefully developing a profitable business. Thank you all!
anadiazarte
We have a lot to learn everyday and the best way to do it is sharing and learning from others.
Tehillahcreations
ArlinkasCostumeShack
Excellent article. Its tough to draw the pricing line!
I usually end up undercutting my profits at events...(especially if something fits someone perfect and they can't afford it, I'm weak and my customers love me) its time to make a little profit! Hoorah etsy!
valentinefiberarts
I am new on Etsy, but not new to the Craft world. I am rather a craft Gypsie and can't settle with one medium. I love it all! So, from me, you will never know what to expect to find for sale in my store. Pricing is always a problem, and it seems that the mass marketing stores have changed how customers think about what they want to pay for an item. Handmade is so personal, perhaps not every thread is perfect or a twisted piece of yarn..Handmade is not always perfect, but to me it is. I appreciate any handmade item that someone had put a part of their life into and how can you put a price on that?
lswatson
Zingdesigns is dead on. The original article had good points. However there can be a great difference between what a person "wants" to pay for something, and the price that will fairly compensate the creator of that object. And allow to continue in their chosen creative career.
As an extention of the pricing conversation, I would like to add one technique for pricing extentions of your line. Upgrades, new pieces in a collection, or a whole new collection.
The technique is called "positioning". As a vendor to various retailers in NYC, I would participate in group meetings when new items were being priced.
It basically involves lining up current selling items, and determinng where the new item fits in the whole scheme of things. For example let's say you sell earrings, or cotton blouses for a price range from X to Y dollars. You replace river stones with amethyst, or cotton with hand painted silk. Your time in making the piece is about the same. You account for materials costs and come up with a price. NOW, put the new piece next to your current sellers. Your river stone earrings sell for $18, your cotton blouse for $25. Accounting for materials cost you new earrings are $25 and your silk blouse is $35. Taking into account PERCIEVED VALUE your new items look like they should sell for more. Move the price up to fit that perception.
Risky? Yes. Beneficial as you acquire the skill? Definately. It will make your whole pricing presentation make "visual sense" and help it correspond to the value your customers put on the various attributes of your work.
Personal example.....I started selling my cuff links at a local fair. The settings were gold over brass as I wanted to insure the price didn't scare anybody away. With my engraved stones, I started them at $35/pr which was consistent with many clothing and department stores.
I didn't sell a thing. So I added a few dollars per piece to my cost, went to sterling setting, used the same stones and more than doubled my price. Sales started immediately. Right choice of materials and percieved value kicked in.
retrogalusa
Great advice, but yet I am still pondering if my price is too high, too low??? Grrrr. . .but thanks for the try :)
TalulahCoco
Very informative. But like retrogalusa, I'm still pondering.. hmm..
EyeCandyChainmaille
Hello. I am new to Etsy. I have worked out a database to do my pricing that breaks everything into categories. I have the parts I use to make my jewelry, from wire to stones to finding. That is the first category.
Then I have labor components such as time to set up, time to make the parts as this can sometimes vary if I am making multiples of the same item, time to make the finished pieces, time to polish (usually minimal as most can be tumbled), time to post, time to pack and mail.
The last category I use is allowances for waste, office and recordkeeping materials, time to do the recordkeeping, and the cost of consumables such as solder, butane, Dawn, polish, and tools that are often replaced such as sanding sticks, or files.
This is still developing, but it gives me a good idea of what the total cost of the item is and makes it much easier for me to price for sale. The thing that amazes me most is the broad range of debate that comes my way. People who appreciate the artistry and work that goes into hand made think my prices to too low; People who think that everything is a bargain in the making think I am crazy for what I charge.
Anyways, the point I am trying to make here is that all of our time and costs are important, whether it is set-up, high quality findings, office stuff, or packaging and mailing. The economy will improve and we will all find our buyers returning. Don't undersell yourself because of factors that have nothing to do with your art. YOU, WE ALL, deserve what we charge for our work.
ikedesigns
Thank you for the article! Very helpful to me as I am new on etsy. A friend also told me that the numbers 4, 8 and 9 are the magic numbers when it comes to selling your work. So far it has worked very well for me with my photography and hoping it works just as well with my jewelry! Thanks again for the postings ~
PurposeReDesign
I have a "day job" where I come in contact with people from all different walks of life. I have started my own survey group and they check out my website and email me what they think I should charge on each item. Even if I only get 5 people who do it they can give me an idea of what to charge. It's worked so far!
y0omii
Very informative and very helpful as well. I will be applying some of these techniques to my shop^^ Pricing items overwhelms me so much so I'm thankful for any help I can get ^^
PadmaBazaar
junkyjunk
ElliBathNBeauty
Price is SO hard to get a good grasp on! I'm constantly trying to evaluate my prices, the concept given with how my items are priced, if they're too low, fair, competitive, etc etc etc! Great article! :) What the hardest part for me is to determine the "labor" price and factor that into my materials, overhead, etc. Is there a perfect formula for this including labor? *wishing* :)
petitedancer25
I'm a number's kind of girl, so exercise three worked well for me... now if only I can get enough time to post those new items...
KualeGirl
schoppetstudios
Very good "realistic" approach to pricing. Great article, thanks!
KarmaKreationzInc
I'm going to have to work on these suggestions. Thank you!
starbuyer0524
ChloesRuffleButt
The gears in my head are turning. Thanks for all the great advice!
AWorldBeyondColor
Thank you for the insights! Great article a still-wet-behind-the-ears newbie (me).
CrochetCandi
MAKUstudio
clearcreekmercantile
These are great articles and so helpful to those who are just starting out in the retail world. They are also so helpful for those of us who have been selling for many years. Sometimes we forget to add in our time to the price and under price our products because we love what we are doing..creating! Thanks for the articles!
MuralMamasTreasures
Great article. Thanks for the info. Pricing is always a struggle.
myneedlehabit
Ahhh yes. Perceived value. Such a slippery slope.
My work (hand embroidery) is very time-intensive and each piece is truly one of a kind, so to abide by the equation of weekly creation vs. wished for annual sales income isn't the that realistic for me. So I'm working on some other ways to increase revenue from my pieces,rather than simply selling my originals. However, my paycheck job is eating up a lot of my energy lately, but I can't complain because it supports my needle habit!
bowwowmolly
I am new to Etsy also but I am aware of wholesale/retail pricing. CCSTAR is correct. You cannot undercut your retailers, I know because I work for a gallery that specializes in handmade, North American, high quality craft and I show my pieces there. There cut for new artists is 50%. I still fall under the 60/40 split. It is so tempting to undersell, but don't do it. ALANKARSHILPA is also correct, when we cut our prices we hurt fellow artists, crafts people and ourselves.
That being said, I know my pieces are priced high, I sometimes wonder if they are worth the price, but I can't risk alienating current or potential retailers. Should I forget retailers and just sell online? And before you ask, I live in a small town with a limited clientele and my retail sells are not that high.
My product includes handmade paper which I make. I also embellish it with batiking or stitching. How do you make consumers understand the true value of your work? I am also a photographer. Many people believe that it is only art if it is a painting. How do you get past that?
Thanks for listening!
mammysshop
DustyRoseDesigns
Great advice. I think zingdesigns really has a good point.
alinegogo
Thanks for the great input! I will definitely be working on these exercises to execute my pricing!
spacejam
Luzy109
suggestion #1 n #2 were great. What's it worth to you and ask potential customers what they would pay. Two important factors for pricing. Thanks will try them out!
wwtreasures
As a child growing up at my mother's craft shows, the rule of thumb for pricing was always this: double the cost of the materials, and then add another 20% on top of that for your time and effort. Of course, in this day and age, that can't be the permanent rule if you offer free shipping, or if you are recycling your materials. I've always found this equation helpful as a base price, and then I play around with it, condsidering any other factors. I have to say, I really like the idea of surveying the ideal customer -- very cool!
ArtigianoJewelBox
The comments from zingdesigns and iswatson are really valuable. Often the artisan is his/her own worst enemy when they don't put a realistic value their own work. That formula in #3 is a great way to start and what it is underscores is that so much of this is about the time. An artist who spends many hours on one piece shouldn't worry that another can sell their product for less - or better yet, design a portion of your line to address that price point.
Gwendolynsdesign
Great artical... now if we can get everyone to read it and put it into effect. It is such a task to price your own work, your time value, your cost down to the last penny (shipping, driving, even time spent shopping for your supplies).
* I think it is important for us all to be reminded of this..
* How to get those who we see 'underpriceing' their tallents to not do so, as I agree it hurts everyone...
* After all we are not giant warhouses shipping thousand of the same item, mass made and replacable at the local big chain store!
Q: Are my prices inline with this? feedback is good as somtimes I wonder if I am under or Over-pricing my goods.
* How do we word it that these are true Artists at work not machines???
PawPawsWorkshop
lemonadehandmade
this is a really, really great article. like others, I find pricing excruciatingly difficult- I hate it. I always ask for help from a (very!) honest friend who I consider part of my target audience and who knows the time and effort that goes into making my pieces. I am always so mystified when I come across etsy sellers who underprice- I hope that this article will give us all the courage to price fairly!
YiraPradoDesigns
imagine8
Great starting point to think about. First set the big goals and break it down to smaller increments ex. quarterly and monthly which you started with how many can you make in a week. Again, thanks.
duchessdesigns
Thanks for the tips. I am new to etsy for selling. I have sold my jewelry for the last nine years at outdoor markets/festivals/private shows. I decided to put them online. This type of information is helpful. Again, Thanks.
anne4bags
This has been a great conversation, and the comments have really added to the original article. Thanks to everyone!
Like so many other I wonder about the price of my things. I have yet to sell anything on Etsy and wonder whether my prices are a factor. (Any feedback would be really appreciated!) However, I do believe that we shouldn't undercut and devalue our time, creativity and skills. I can't compete against the cheap mass produced bags, and so I have to find my own niche amongst those who want something unique. I suppose that is why people come to buy at Etsy, rather than the discount stores. Someone on another post said that buyers were not just buying our item, but also our dreams, personalities and ideas.
mLindvall
MoiAndMine
I like what you said about stand back and look at your item through someone else's eyes. I know I tend to be more critical of myself...thus I try to price lower than I should. My very first day, my etsy friend said my prices were too low. When I compared...she was right! Let's give ourselves some credit...but maybe not too much ;)
FutureRelicsGallery
This article has a lot of useful ideas about a topic that plagues all artists and crafts people at one time or another. I recommended this information to a friend who is considering starting her own shop selling photographs. Since the prices are subjective it's great to have some guidelines.
Thank you
RoKoKo
eclecticbysari
ambergoulet
I mainly base my prices on how much time I spend and how much the individual materials cost.
Since I'm still trying to get my Etsy shop to start making sales I haven't thought to calculate the overall yearly income goal. That seems to be a very practical, business minded solution, a viewpoint that is very helpful to me.
Thanks!
UdoUmami
nancyngl
KasaCollection
those ideas are great... the third thought didn't even come to my mind until i read it...
very good
Tina669
TuscanBlooms
Honestly.............this was very helpful to me. As a new seller, I'm alway looking for ways to wrok my shop and get ideas to be a successful seller.....
GOSH I LOVE ETSY!!!!!!!!!!!!!!!!!!!!!!!!!!! ROCK ON!!!
CavemanPottery
Another great way that I have found to be helpful in getting help with pricing, is to enlist a mentor, teacher or fellow artisan in helping to "appraise" your work. Someone that has been doing it longer than you will have knowledge and an appreciative eye for what you do. We can learn alot from each other. I have been fortunate to find my local pottery community to be very supportive of each other. We have embraced each other with the attitude of "we are in this together!" Try it, I think most artists would be flattered that their opinion mattered to you.
LaComtesseDeTalaru
I think your pricing strategy needs to be adaptable, depending on what you sell. I sell supplies in one shop and handmade in another.
You will have your own objectives for your shop - for me it is to fund my own hobby of jewelry making. So my pricing needs to cover all costs of sale (item, packaging, fees etc) then there is a % markup I add onto that. I still look at the end price and think 'is this reasonable for my buyers'?
But what is most important for me is selilng things my customers want to buy. If they really want what I sell, they will pay a fair price. I find that if something in my shop does not sell, it is not a matter of price, it is because they do not want that item. Even if I reduce the price, some things just will not sell. So I would not continue to stock those things in my shop.
LaComtesseDeTalaru
I would add as well, the 'profit' I make on each item sold funds my hobby, and the cost recovery (item cost, fees etc) funds the purchase of new items for my shop. It works for me, but I appreciate others have different goals and objectives.
GeorgeGs
genellesvarietyshop
What is one's work worth? That's always been the most diffecult. Yet sometimes I find myself being too low. It's always harder than making your craft. Great article. Puts new life to the question. Thanks!
DesignsByShyloh
great advise I just got to start selling. I sell a lot face to face. Very time consuming though. It's differnet on the net though.
swinginmartinis
I talked to some friends at work and asked them what they would pay for my stuff - yeah, I didn't like their answers, but they weren't my ideal customers...then, I ask myself what I would pay, but I'm cheap...So I'm not my ideal customer either...but I just realized that on top of 20 cents, etsy charges 3% per transaction...so I had to really rethink what I was doing. I want to get paid to be crafty, and 50cent profit was not kickin' it.
penpalsink
underoakstudios
Well that tip #1 is a bit of a turd in my punchbowl. I'd never thought of that before. Sigh...
Great article.
designsbyMelissame
Great advise and exercises. You can add up all your cost,but it's very hard to put a price on your time.
ChudCity
I think this article will really help me and many other new sellers on Etsy! thank you!
DesignsByDebi
franchelle
The first exercise gets you thinking! Another angle I usually consider when pricing an item is: "Would I buy this item at this price? What's the highest amount I would pay for this item if I see it on a store?" This has provided a more realistic approach to my pricing methods. Sometimes you may realize that you're pricing it too low, considering what people would pay for a similar item in a store.
SewCraazyQuilts
I'm new to Etsy selling so for me these are great tips! Thanks!
BlueGremlin
hfgifts
Bobotz
violavintage
Excellent article and loads of really helpful comments too. As a newbie I truly value all this advice and take it all into consideration as I believe in learning from others success.
nellyvansee
It would be helpful if someone can evaluate my pricing. Sometimes I confuse myself, I starting thinking its too low or to high... depending...
JohnZane
I'm surprised no one's mentioned comparison shopping. Though many of my items are unique, I still compare them with similar offerings here, as well as online, and in retail stores. I take the median price as my guide. Buyers are much more likely to comparison shop now days, and I assume they do so on Etsy, as well. I also believe people who shop for handmade would rather the artist get all the money, rather than the middlemen. This became so clear to me when I found all the "handmade by local artisans" souvenirs in Costa Rica were made in China. It's something to consider when you're stuck on prices, would you A) Buy something directly from a 15 y/o trying to raise funds for her college education or B) Buy a similar one on Amazon.com, for half the price? Make your story authentic, and I'll bet it has a better chance of winning buyers than low price points alone, IMHO.
SharkmouseJewelry
nichan
logic calculation is important but we can't ignore like 'quality' price, though...
some people may make some stuff for hours but the result? is it worth it for that price?...
so now, this is what i do before calculating the price: my time is an investment, too. So, time i used to create, i won't waste it on 'low-quality' result. That's for sure.
hmfromtheheart
I think these are good words of wisdom. I guess my problem is getting traffic to my site. I think my pricing is fair. I sell a lot of my items in my area; when people can pick them up and really appreciate them. I guess it is hard for people to be able to see all the great craftsmanship and all the detail online.
If anyone has advice on how to get people to my website and purchase, that would be great!
GreggsGoodies
Great to read this! I have such a tough time of trying to decide how much for my mini-journaling books, glass hangings, cards, altered books, memory boxes, and even the vintage items. Some say I have things priced too low, and so I've "upped" the price a little. Hope that doesn't hurt my business. People look, but I don't have the buying traffic I'd like. So I'm always looking for ideas from others on here. I've found that doing Showcases really helps with exposure! And so I will continue to do that. Thanks Danielle for all your helpful info.
KayleighsKuttings
Great article and lots of good suggestions. I find no matter how much time and consideration you put into pricing, you might still have to go though trial and error to get it right!
thecircusmaster
Hi, I need some help here. I counted back to when the 333rd list would expired, I brought a glass of wine over to the PC, sat down, refresed and it showed 334. I refreshed again and it said 545 and "the treasury is full" did I miss something, What did I do wrong???
CraftStylist
FreedomHill
As a newbie, I appreciate all these valuable tips - so thank you. I'm going to try a few of the suggested 'formulas' and see if they give me a pricing trend to work with.
stagedragon
Helpful tips! I am hoping I can put this to use with pricing my art prints :) Thanks!
fortheloveoflife
relikake
blackbird72
slipshodsally
This article was very helpful. One factor in my pricing was comparing my shop to similar shops and seeing what their selling prices were. The other factors were time and materials.
blackscrapcat
bstrung
DVictoriaDesigns
I agree with the person that says when you sell retail they really double the price! I have sold on consignment and the designer usually gets 40% and they take 60%. So, when you are selling yourself you really do have to figure in all the costs, electricity, gas to go to the post office, materials, etc. Thanks for all the great ideas, Danielle rocks!
maryhandmade
SilverSmack
IBWAMStore
so useful!
thanks all :)
I always try envisioning my customer and their style when pricing products. I think it gives a much higher chance of positive feedback and repeat orders ;)
ashleysummerphotos
This is a nice article and helpful to newcomers like myself. Thanks :)!
billiewren
JillsBeadCreations
Great article for a newbie like me. CCstar, loved your input too.
ShakaStudios
I LOVE this series of articles! It makes me so sad when I find artisians listing the fruits of their labor, sweat and creativity at prices well below what they are worth. Customers know the value of handmade! Don't sell yourself, and your product, short!
thestoriaproject
DriedFlowers
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