Help On Pricing

[Former_Member]

I have watched the pricing video and have made a formula for my scarves and cowls.
My husband keeps telling me it is too high and no one will ever buy.
I need some feedback on my pricing, if you all don't mind. I know most people making items like mine are priced way under me. However, I don't want this to be a hobby. I have been working at my store for some time now and I am not about ready to give up.
Thanks so much!

[Former_Member]

Wow Elizabeth! What a beautiful shop and your work is stunning!

I have to say though, I agree with your husband, the price point is a bit too high. I completely understand wanting to come out of the gate and not be a hobby but without a following it's nearly impossible to move forward especially with almost identical items on Etsy for $30-$50.

[TerraRhapsody]

I would lean towards them being a bit much, but saying that, you do need to get the cash that is due to you as a craftsperson. Those are the kind of prices I might expect a higher end boutique or popular clothing label to charge- perhaps try marketing yourself as something of a high-end store? Or market them as fairtrade/organic where people may expect to pay more
What formula were you using? I find a few of them to be unrealistic. If it is a realistic formula, do you have any ways you can make your scarves cheaper to make? such as buying in bulk, or keeping expenses low?
I wouldn't base your prices on what other people are charging, however, as they may be making a loss or breaking even in terms of a business approach, which is certainly not a good idea. Artists do need to live!

[Former_Member]

I am using the formula Etsy gave in a video.

Profit+ Product cost= Whole sale

Product cost= Materials+labor+overhead.

My goal is to be seen as a high end shop. I am not sure how to market myself as such. I have been working on better pictures etc.

Thanks for the input ladies!

[Former_Member]

Oh sorry:

Profit+product cost x 2= retail

[Former_Member]

Hello !
I'm in the same boat ;-)

[Former_Member]

As a consumer - here is my feedback by type of items:

Greeting cards - VERY high
Cowl Neck Scarves for Males - a little bit on the high end but not unreasonable
Crocheted Scarves - are absolutely gorgeous and I think they warrant higher pricepoints, but they still might be missing the mark a bit even for a boutique/high end line perhaps $10-25 might make the difference

[Former_Member]

Hi Elizabeth!

Your shop and items are just gorgeous!

My first reaction was that I may not afford one of your pieces - however - I think there is a way around keeping your prices or lowering them just a smidge. I suggest giving a bit more of a story behind how you made them (if they're organic, like what Kitty said) and why they are unique. Your descriptions are great already, but I'm just wondering if a bit more about either the process or the quality/rarity of the materials may help! Sometimes customers need a little bit of a back story to help captivate them even further!

Best of luck to you!

[LovgrenandDaughter]

Hey Elizabeth, the 20% donation in the Shop Annoucement isn't addressed in your About page. You do mention it on the item page, though. I would add it.

Love the Skinny scarf will make you feel skinny! Bahahaha.

Personally, the shipping isn't necc. in each listing. Please see shippping in policies would be enough.

Don't tell them to take off the tag. When they get asked where they got the scarf they've got to look somewhere. Hermes scarfs have the name in them for a reason.

Maybe adding in the listing that $22 from the sale of this scarf will go to human trafficking puts the donation right up in front of the buyer. I wonder if it is still considered a tax deduction for the buyer?? I would find out maybe you could put that in the listing.

Awesome idea to help and craft. Sort of Tom's shoes model.

Your scarves are beautiful. Maybe you could try to find a way to advertise to people moving to Minneapolis. I used to life there and was a transplant from NYC. I had NO IDEA how cold it was going to be. Minneapolis is on the up and coming lists of cities. Though the -25F they don't mention much. Or maybe being from Indiana you could play up knowing what cold really is with snow and temp and built the brand up that way.

btw I hope you don't mind the brain storming. I am avoiding working on things in the shop today....:)) xK

[Former_Member]

I was looking at Neiman Marcus and found some scarves for $100. Here is the think your husband is not the one who will buy it. He is not your target. How much does it cost you to make your scarfs. Is this the absolute cheapest you could make them. I would look at higher priced upscale stores and get some marketing ideas. I would also try to sell what the scarf is. For higher end especially you are not selling the physical product. You are selling the benefit and creating perceived value. In a sense he is right because he is showing you that you need to do a better job of conveying perceived value.

[Former_Member]

concentrate more on the donation to end human trafficking for example.

[LovgrenandDaughter]

"you need to do a better job of conveying perceived value." Genius.

[ChristianaOdum]

I noticed some of your listings don't mention the material used. I think your price points are fine for high-end yarn (especially a good quality wool), but if the material used is an acrylic, I think it's a bit high. Many shoppers on etsy are particular about the materials used for crochet and knit items, so I'd be very concise with what was used. (i.e. 100% Merino wool, %50 merino and 50% cotton, 75%Baby Alpaca and 25%Bamboo, etc.) You may find being more descriptive with your materials helps tremendously.

I also agree that telling more of a story is a good idea. If your pricing is where it needs to be, you definitely need to find ways to market to the people who would be your customers. Don't lower the price simply because you aren't getting sales. Keep the price and get your products out there in front of the right people. Also, remove the bit about your hand-sewn labels being easy to remove. The label is a piece of the garmet. You WANT people to know that they have your product. Be proud of it. Make them feel like it's important to have your label. Have them show it off to their friends! :)

One other side note, while I love that you're contributing to a cause I personally care strongly about, I think putting so much info in the product listing about it detracts from your product. Are you selling a product or an organization? Your product should be able to stand on it's own two feet, and having so much info about the organization you support distracts from the item you're trying to sell. I think it may also be in violation of Etsy's Terms of Service, but I could be wrong. I know at one point, the handbook stated some pretty strict guidelines about advertising charity contributions, but I haven't read the handbook for awhile, so I'd have to refresh my own memory. :) I think it's great to let people know about the organization you're donating to, I'd just put more info on your about page and less on your product listing so that your products can shine.

I hope this helps! :)

[ChristianaOdum]

PS- sorry for such a lengthy response. I just know I've been in your same position, so I'm trying to help as much as I can. :)

[Former_Member]

Ladies, thank you soo much for such amazing responses! I will work on all of the above.
I need to work on having a better product description. I am just not sure how to describe it to make it better. hmm. I shall do some research for sure! Awesome, thanks again!!

[Former_Member]

I use a wool and acrylic blend. I probably need to research and get better yarn, not that this yarn is bad. I have been thinking about buying from Etsy yarn people and making my scarves from their products. Keeping it all in the fam!