Help re-pricing items

[JarringImpact]

Ok I think I need to change my prices to be more competitive and hopefully start getting some sales. Just looking for some input and opinions. Take a look at my shop, how would you price my items?

[Former_Member]

Pricing should not be guesswork.

Etsy has a suggested pricing formula that is a great starting point:
www.etsy.com/blog/en/2012/a-simple-formula-for-pricing-your-work/

There's also a great online lab called Pricing for Profit that has some great advice:
http://www.etsy.com/blog/en/2012/etsy-success-the-art-of-pricing-for-profit-workshop/

[Former_Member]

I second the Pricing for Profit video.

You should be pricing to cover (at least) the cost of your materials and the amount of time it takes to make the item.

The video will explain covering the costs of marketing and including profit. Both of which are smart, and will give you some padding just in case you have a return or a reship.

[JarringImpact]

Thanks for the articles! Thats awesome!

[Former_Member]

Cute shop :) I agree that prices should never just be guesses! At the LEAST materials plus labor, but it's good to double that to make it retail and to cover any additional costs like etsy fees, Paypal fees, overhead costs, packaging, etc.

[silentmagician]

You haven't been open very long so I would guess it's not that your prices aren't competitive, it's that people are still discovering you. I wouldn't lower them honestly. Definitely make sure you are covering the cost of time (don't forget the time you spend designing too!) and materials, but also cover the little or unexpected costs you might not otherwise think about. Remember, you need to make your profit :-)

[TerraRhapsody]

Your prices are looking fair to me already- perhaps even too low. I have to agree with the above articles, as they're really helpful and help you on your way to understanding things from a business point of view.
Lets take a look at one of your listings:
http://www.etsy.com/listing/120478049/wire-wrapped-ring-silver-spiral
Okay, so if this were mine, I would be adding everything up to create a fair price for the work. I'm in the UK, rather than the US so the currency is a bit different, but you should get the idea of what I'm saying!
I buy a reel of heavy gauge wire, but only use £2 worth of wire. I had to drive 2 miles to the store to get that, so the fuel costs for getting the wire will be removed from any profits I earn as expenses. According to HM revenue and customs, I should get £0.45 per mile travelled to cover fuel/insurance etc.
I work for 30 minutes on the item, and minimum UK wage is £6.19, so that works out as £3.09 labour costs. I also made this ring at home in my office, so heating that room is a percentage of my annual energy bills, which will also be an expense that I remove from my profits.
It costs me $0.20 to list the item, and Etsy will take 3.5% of the cost of the item, meaning I need to add 3.5% to the cost of the item to cover my costs. Paypal will also take a percentage of the money I make, including the money I charge for shipping. These are all expenses you have to add to your item.
At the moment, I can see the price of your ring might allow me to break even. You need to add profit to this amount. Many people consider the price reached then to be a wholesale price, and as the etsy maths suggests, doubling that price to create your retail price :)
I see a few communities where profit seems to be some great evil, but it's not- it's business. Life wouldn't work out too well if we all broke even with everything! You want profits to keep driving your company s you can expand or create more items to sell, perhaps profits so you can afford to buy essentials for your home or save up for a wedding, holiday or special treat.

[JarringImpact]

This has been really helpful everyone! I'm actually considering raising some prices now. Thanks so much for all the advice!

[AttentionGetting]

The advice here on pricing is correct - business and material costs plus labor plus markup for profit (typically 40%). But whether your ring is $10 or $12 is not going to make much of a difference in terms of a person's buying decision.

What you need to do to get sales is promote your products to your target market. If it is women ages 15 to 29, then you have to seek them out, starting by trying to get featured in media they read, such as blogs and magazines.

[Orchiada]

Ashely,

Your prices are really good to me, perhaps a little too low even, because your items are beautiful. I have read the article from etsy on pricing and must admit I had not followed the formula, so I will be going back over that article again for myself, you should check it out too.

[Former_Member]

Yeah, definitely watch the Pricing for Profit workshop. It rocked my world.

It's not about how much you sell, it's about how much you make. Higher prices actually might mean fewer sales *but more revenue* (eventually, once people find your shop).

[JarringImpact]

Being new at this, I'm amazed what a science pricing items really is! Pretty fascinating & cool!

[Orchiada]

I have been reading everyone's comments on pricing items above and I got some really good suggestions for my shop.....I went back over the article that was entitled "pricing for profit" and decided to do the whole formula for my shop..........I realized i am shortchanging myself, but still feel little awkward in raising my prices.......but I'm going to follow the suggestions and advice and see what happens. Let me know what you all think :)

[WhatCandySays]

I thick your price is good,

But the postage is too high.

Well...How about change $3 to $2.96...

Just my humble opinion.

[Former_Member]

Love this discussion. I watched the video today and read the article. Then I went to work on my prices.

Wow! I was selling at or below wholesale! It does feel awkward raising the prices but I am forcing myself to do it. If I have a severe drop off then I readjust.

It is time consuming to rework the pricing but so worth it. I only got about 1/3 of my shop done.

Next on the agenda -- new photos, new backgrounds, new lighting.

[Orchiada]

I'm in the process of doing the same thing....will see how it goes. I sat down with my hubby and we went through the pricing for profit article from etsy, & he laughed & said isn't this what I've told you many times before...lol, so I'll see how it goes if it affects anything I'll revamp again. I realized I was barely covering my cost of basic materials.

[Former_Member]

Well I repriced everything in my shop according to the video and article.

Yikes! Now I'm concerned that my items are too high. Similar items are selling for much much less on Etsy.

Advice? So confused.