- Think about your time you put into creating an item and how much you spend on supplies. You need to make that money back and get paid. The most basic pricing formula is:
Cost + Labor x 2= Wholesale Price.
Wholesale x 2 =Retail Price.
- You are running a business. Does Apple, Gucci, Macy's, Trader Joes, Dole, The Miami Heat, Jet Blue, Petco, Starbucks, Nikon, or any company you know give away their products because they just want to make a sale? NO!!! Neither should you. You work hard. Your price should reflect that.
- Handmade items have higher prices and they are higher than what you will find at a box store. Why? First of all look at wages in Vietnam, China, and most countries where the product is being made. It is constantly lower than in America. That is why it is made there. The quality of your materials will be higher. Also your product isn't mass produced. T-shirts in a factory are being sewn together in less than 10 seconds. Really. Can you do that? No. Should you be able to do that? No. This is where quality of your product comes in. Quality. Costs. More.
- The world isn't your target market. You may not even be your target market. If you have people tell you to lower your prices and they aren't your target market or they are not crafters who you trust and make a living off of what they create tell them to kick rocks. There are so many people on etsy who under price their stuff. They make it bad for everyone. Don't be one of those people. You will be shunned.
- Chances are you need to raise your prices. If you are questioning I highly suggest finding etsy educators on etsy. Many will set up appointments and give you a rocking shop review for a great price. Check out Steph from Nerd Jerk. She blew up my shop and has motivated me in insane directions. She is also one rocking chick who you can trust for the truth.
- Think of it this way. If you sell handbags that cost $15 in materials and take 1 hour to sew. Would you rather sell 3 at $20 or 1 for $100? In the first case you are making $60 but after you taking the $45 in materials out you are left with $15 for 3 hours of work. Or would you rather make sell one bag for $100, with will cover your cost of materials and be able to pay yourself $10 a hour for your time. Plus it gives you money to buy more materials, do some advertising, and set yourself up for doing wholesale accounts with boutiques and stores?
- Pricing is emotional and can take work to find that sweet spot. But when you undervalue your work you are basically saying 'what I make isn't worth the price, it is low quality, and I'm not worth the money.' Trust me, you are worth it. Now mark it up.
What are your thoughts on pricing your work. What works for you? Do you have any handmade pet peeves or etsy myths you would like busted?