Pricing

[Former_Member]

Im sure this question has been asked a million times...

I've been kicking around etsy for many years now and have only recently thought about selling stuff here. I have two things that I do creatively that I could sell... One is my jewelry (sterling silver and gold wire work mostly - but I'm learning silversmithing just now) and fiber arts (knitting, crochet, etc). I suspect I'm not a speedy knitter or crocheteer - but I'm not the slowest either... But I'm a bit perplexed at how anyone really can make a profit from either knitting or crochet. I keep seeing stuff for sale on etsy that would barely cover the cost of materials. Even a simple scarf usually takes over an hour to make - unless the pattern was super simple and/or it was a very short and narrow scarf. Even when I belonged to various knitting groups - I mostly never saw anyone completing a hat in less than an hour or maybe (if they were super speedy) - a half hour. But I keep seeing all these hats ans scarves out there for less than $20. Once you pay for the yarn (maybe $5 on average for medium quality yarn for a hat and probably twice or three times that for the scarf) - that's a very narrow profit margin, especially since so many etsy shops only charge a couple bucks for shipping. So once you've gotten through with shopping for the yarn, designing what you're going to make, knitting and/or crocheting, fInishing and weaving in ends, photographing the piece (after it has been washed, blocked and dried), posting the ad in the etsy store, making the sale (including whatever convo you have with said customers), lovingly package the piece and mail the thing off to customers - it seems to me that if you're doing all that for less than $10 for something handcrafted - then you're being robbed - or else you don't care if you're making a living wage or even minimum wage. This is hardly unique to the fiber arts being sold on etsy. I repeatedly see this for jewelry too - a LOT of very nicely done work that is being sold for almost the spot price for the precious metals used to create these lovely works of wearable art. I have to admit the pricing conundrum is always what kept me away from selling my work on etsy for years. It's hard to set a reasonable price for your work - when there are so many crafters and artisans cheerfully selling their stuff for maybe ten dollars (if that) above the cost of supplies and shipping materials. The folks that really kill me are those selling handmade stuff for less than a dollar.

Anyway ... (sorry for the rant)

What I really want to know are two things:

Is it really possible to sell knitted and/or crocheted items for a profit (where you make more than just the price of materials and above mimimum wage for your time)?

How do you price things on etsy so that you get sales without selling your work for a song? (I imagine it must be tough to price things at a higher amount when there are so many out there on etsy selling their work for so little)

[Former_Member]

Hi Elise

1) Is it really possible to sell knitted and/or crocheted items for a profit (where you make more than just the price of materials and above mimimum wage for your time)?

- Yes. But you have to do your marketing. If you are pricing for the Walmart customer then that's the customer you will attract. However if you are pricing for the Neiman Marcus crowd then you need to be marketing to that demographic.

2) How do you price things on etsy so that you get sales without selling your work for a song? (I imagine it must be tough to price things at a higher amount when there are so many out there on etsy selling their work for so little)

- You take into account the cost of your time, cost of your materials and the profit that you want for the item. If you have a strong customer base then you can make a fairly good living with higher priced items.

Remember to work smarter and not harder.

I'd much rather sell one item priced at $100 than 10 items priced at $10 each. However, many on Etsy look at the total number of sales to determine whether or not they are doing well only to find out when they actually do the math that they are actually losing money on each sale.

There is a price point for everyone.

[Former_Member]

Thanks for your very helpful reply. I know these questions have been posed and answered many times over on the forums. I've seen it come up a lot - as well as the baffled feeling and bewilderment that newbies experience when they scope out similar items that they plan to sell on etsy and discover hundreds of them being sold for almost the cost of materials. It can be truly discouraging and demoralizing really - especially for just starting out! It was overwhelmingly what scared me off from selling on etsy for years - the worry that if I priced my work (especially jewelry) for what it was really worth in terms of materials, time, etc. - that I would end up with no sales - because people would end up buying from the etsy people who sell their work for half as much.

I very much agree with you about the idea that I would *much* rather sell one item at $100 than ten items at $10! Granted, getting those ten sales and getting positive feedback from each one - helps boost your credibility as a seller when you're first starting out - and I can definitely see having some "grand opening sale" - just to stimulate those first sales. But as a general rule - I think I would *far* rather market myself to the higher end crowd, than I would shoot for the lowest common denominator. Granted, I won't get the sales from folks who are going on etsy, expecting to pay garage-sale prices for handmade goods - but I don't really want those kinds of customers anyway. I make quality pieces of jewelry and I make quality hand knits and hand crocheted items. If I'm taking the time to make something by hand - and the stuff isn't just what was bought wholesale somewhere, but what I put a lot of time and energy into creating, I am not going to value myself and my work so poorly as to sell my work for the cost of materials.

But it can be very intimating when I look on etsy and see all these other sellers with supposedly successful shops (lots and lots of sales and positive feedback) who are selling their work for a couple bucks a piece and most of their sales are for things that are less than ten dollars each. It makes it seem as if it might be hard for me to compete against these other people who are almost giving their stuff away.

But I am trying to make this a real business and make a real go of it. I'm taking care of a family at home, including an infant with special needs, such that I have no other alternative than to work from home. So it's important to me that I'm not just treating this as a hobby, but an honest-to-goodness business and what I do ends up helping us to make ends meet and to pay the bills. It's no good if I'm simply breaking even. Granted, I know that starting out - it's not uncommon for businesses to operate at a loss for the first year maybe - but I hope I can get this working so that my small business is a genuine help to our family within a year.

Anyway - thanks for your helpful advice and what you say about "marketing" to your intended audience makes a lot of sense!

[Former_Member]

I appologize, as I didn't have time to read every bit of the post here (company coming!;)....but I just want you to know that this drives me nuts, too!!!!
And, even though some of the cheaper shops will probably go out of business (or they are only doing it for love, zero payment for their time), there will always be new shops, that open up, and do the same thing....It really isn't fair....
HOWEVER...I agree with Crochetgal....you have to find the right market, and you can make it work. I always had the motto that if I am going to give it away, it will be to family and friends, who would love to have my stuff!
Then, you start to wonder, am I out of line, for charging so much? The answer is no.....is the other person willing to expend the extra energy to reach the right crowd? To promote? It's frustrating, to have to do this, but it's a fact of life, here on the internet. You will get lost, unless you make yourself noticed. But as time goes by, you become more established, and don't have to work so hard...people start coming to you, more. My advice is to hang in there, charge your price, and work on promoting.
Also, another thing that I have taken to doing, is actually including the cost of materials, in the listing, and/or time spent! (I just got fed up with people saying, "That yarn is how much???" "Or, I can get a hat like that, for way cheaper!" Once you mention your time, to most people, they respect that, when they stop to think about how much they work for.:) Good luck!

[Former_Member]

I want to change the name of my shop to:

This is not K Mart.

[KnitAndCrochetPalace]

Valarie, I agree.

[Former_Member]

My stuff isn't priced an high as it should be. I charge the cost of the yarn and then it takes about 3 hours of solid work to make a scarf, i charge $5 an hour. I know I need to raise my prices, but if i can't sell anything at these low prices how can i justify raising them? I also have a photography shop as well and it is the same thing their. My stuff is not priced anywhere close to what it should be.

[Former_Member]

I admit that I don't always take my time into account, but some of my items I can whip up quickly (like the washcloths...those go super quick). I definitely make sure that the cost of materials and shipping is covered. I'm not shy to charge quite a bit for items that take me more time (like the star blankets or any other blanket I might make). I'm in the same boat as you...I'm unemployed right now and expecting my first child, and it would be nice to bring in a little extra cash to help with bills and such. I've actually done all of my sales off of Etsy at this point, and I wish those counted on this website to help build my credibility as a seller, but it is what it is.