How does one compete

[Former_Member]

First off my shop is a work in progress and I am not about to complain about I have no views. However I want to know how one competes with those who sell the same merchandise that I have for dirt cheap. Although I think my prices are fair I have been thinking about being more competitive. I have seen extremely successful shops that are way under my price that can't keep up with the orders. I want to be busy too, but I don't know if I am willing to sell myself short. Thoughts?

[WithLoveFromLucille]

To be honest...we all have that issue.
We can't focus on that, instead work hard to make our shop & items the best we can.
A lot of people sign up for Etsy to sell their crafts and WANT to sell them so they undercut everyone...
The way you have to see it is when it comes to handmade, those who understand the art of handmade will pay for quality.
AND
you also have to remember that the pricing formula is helpful to follow in order to make profit AND grow your business.

If I sell a hat moderately priced at $30
and someone else sells a hat for $10
after fees and materials they're probably making about $5 profit INCLUDING paying themselves.

What I'm trying to say is if you price correctly, you can work on growing your business.
If you are selling below market value...you'll probably struggle.

[Former_Member]

Thank you I needed to hear that.

[PiecesOfMePaperCraft]

Sherry from SassyShugaBoutique
I have seen extremely successful shops that are way under my price that can't keep up with the orders. I want to be busy too, but I don't know if I am willing to sell myself short.
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You're smart to not want to sell yourself short.

The shops that are underpriced are working harder than you to make the same amount of money. Think about how many items they have to sell to make the same profit that you make on one.

[Former_Member]

I think you are priced right, and especially in your niche, I look at price as an indication of quality.

[Former_Member]

I was just talking to my business partner about this topic. I saw an anchor and leather bracelet today on an Etsy site for .99 cents. It costs .20 cents to list it.how could anyone compete with that? I've tried to price realistically. Would not be interested in trying to undercut anyone. I thought community was an integral part of Etsy.

[BitsOffTheBeach]

Be sure to include in your description why they need YOUR product. Quality of material, quality of construction, your experience etc. You can buy a t shirt for 5.00 at Walmart or pay 50.00 at an up-scale boutique. You want to be the up- scale boutique :)

[Former_Member]

I'm so glad I came across this thread! I needed to hear this advice as well, and was very encouraged with all the advice here. I've been struggling with similar thoughts, especially with being a new shop and trying to figure all this out :)

Sherry, your shop is super cute!

[elainesgems]

When I first started I found a shop selling beautiful pendants for under $12. She only charges what the supplies cost her because she likes making them. I wondered how I was ever going sell anything! My friend said the same thing WithlLoveFromLucille said. 'You can't focus on that, just do your best'. I took that advice and sales did come although it took a while.

[QuirkyUniverse]

You can't compete with prices. Be worth what you charge by offering a well made product, excellent customer service and quick, secure shipping.

Don't be cheaper be better.

[Former_Member]

along that line "...be better" - what can you do that would set you apart from the others who are under pricing you?
could you use organics, the latest fabric designs, free facecloth with purchase - something along that line - perhaps...
y

[Former_Member]

To put it simply, you don't compete with those shops. You rise above. You find something they don't have. You continue to offer the same beautiful, handmade, and therefore customizable products you have right now, and work to grow and expand. And you stick to your guns.

I could rant endlessly on this topic, but I think I'll end my comment right there.

[Former_Member]

Lori Ferguson from MaddDoggofTomorrow says

You can't compete with prices. Be worth what you charge by offering a well made product, excellent customer service and quick, secure shipping.

Don't be cheaper be better.
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I completely agree with everything that Lori said! I have faced similar struggles with my pricing in the past, but I realized that I need to be fair to myself in the process - my products are well made, I work very hard at everything related to my brand, and my items are priced accordingly. Definitely a good thing that you don't want to sell yourself short; your time and effort are worth more!

[isewcute]

I consider price as an indicator of the quality. Also, as a buyer, I often shop for gifts with a certain budget in mind. Perhaps others are doing the same?

[Former_Member]

You all make me smile. Etsy is such a great concept. Thanks for the wisdom.

[Davs]

Try not to worry about competing, just do your own thing, people will appreciate it. :-)

[Former_Member]

I also needed to read this... I have been wondering also if our prices are too high... We don't want to devalue our work... We're new so I think I need to remember to have patience... If anyone checks out our site and has any helpful tips please do so, I thank you.

[Former_Member]

I just had a look at you shop and I totally love your products (especially your superhero wallet!). However, I was gutted when I realised you don't ship to the UK (where I'm based). If you can, I would suggest offering this as it makes a big difference to your sales (most of mine are international)!

[PorcelainJazz]

I couldn't agree more with the advice I've read so far. Lori Ferguson said it succinctly when she said 'don't be cheaper be better'.

Your product is very cute! And your pieces look quite well made. I suspect competition is not the problem.

If you are worried about views and sales maybe it is time to find out more about SEO for Google, relevancy for Etsy and marketing through social media. They aren't easy and this is what I find myself struggling with.

[Former_Member]

I sell Jewelry, that costs quite a bit to make as I buy vintage and items overseas, and there a seller here who sells jem set earrings for $0.20, how can anyone compete with that? I mean she must make her money from postage which personally I think is wrong, but hey what can you do?

[PatternCrush]

If you can't compete on the low end, why not try and mark up price and quality both? Not everyone is looking for the cheapest.

[Former_Member]

It's hard not to look at people who price similar items than you as competition. It's like there's something in us that makes us second guess everything and I personally torture myself over this subject all the time.

It wasn't until recently that I let it go. I'm happy with my prices and although my profit isn't where I want to be in five years - neither is my shop! It'll take some time and adjusting from here on out but as long as I'm happy that's all that matters.

Don't let any other store be the reason you change yours. Make it what you want it be - after all - it is your shop ;) The people who are interested in you and what you make will purchase from you and not anyone else.

You'll create a following and sales will get higher and everything will work out. Time is biggest competitor! Don't let impatience mess things up for you!

Good luck!

[Former_Member]

This is a great thread! I just increased my prices on cards to include shipping as I think that the customer would rather spend more on a good product and not worry about shipping fees. Regardless of what the price is, I have to believe that my product is better than average in quality of art and paper stock, and I think the customers will come. If you make the best products you can, the right customers will find you.