Is there such a thing as being priced too low?

[Former_Member]

I know shoppers are nervous to buy from a shop with little feedback or sales, so I decided to do a sales promotion. After a week now I'm wondering if I'm priced so low that I come off desperate or that my merchandise isn't quality. I've seen some of my same fabric on other shops for way more and they have tons of sales. Any thoughts? Any and all feedback welcome!

[Former_Member]

Your items are beautiful and reasonable. It wouldn't bother me to shop from a store with low sales. I just buy what I like!

[Former_Member]

In some cases I'd say yes, but your stuff is great :) Pictures and everything... Sales will come!

[OhKuol]

Pretty store :) I agree with BearyCreative, keep your prices reasonable but don't underprice your items. You've been around for a month, give some time, sales will come!

[Former_Member]

Hey I've been here since January and only had 3 sales!!! Don't worry about it though, it will come!! Be patient, thats how I feel!!

[Former_Member]

Yes, there is such a thing as being underpriced. Many people will have an expectation as to what they will pay so will start in that price range. Most will move UP if they don't find what they are looking for.

Pricing can be difficult at times.

I base my prices on
1) cost of materials
2) cost of my time (what I pay myself)
3) overhead expenses (paypal fees, etsy fees,etc)
4) profit that I want for the item.

This gives me my BASE price or wholesale price.... the price that I will sell in large quantities at.

To get my Etsy price (retail price) I double my Base price. That way I can have a sale or offer a discount without cutting into my profits or my income.

Personally I really don't worry about the number of feedback a shop has, as long as its not all negative. If I like the item, I'll purchase it.

One thing that you may want to do is to add something about the materials used for your pillowcases. Take photos of the cases from all angles, including the closures. People cannot pick up and look at the items when shopping online so the photos have to do the work.

When you say 'see my listing for the pair', it would help to include the link right in the description as well.

[Former_Member]

Your work is very attractive.

Please don't underprice! I heard a great thing from a course I attended:

Imagine a little carved wooden horse on wheels - a child's toy...

Imagine it for $30....

Now imagine it for $2.

Pricing low tells a story and not necessarily a good one. You wouldn't risk a low-priced toy as a gift for a child, it might fall apart or have been made unethically (a BIG deal now).

These things aren't necessarily fact but they are implied by the price.

The right person will come and buy it for £30 - and it will have value for them BECAUSE they paid $30 for it.


Your work is valuable. It has its own story.
(crochetgal has it right with the numbers and advice too!)


Good Luck - stay true and strong x
Harriet

[LavenderDaisyCrafts]

What a great question... I have been wondering that myself.

I checked out your shop - Lots of great things! Much success too you.

[Former_Member]

I don't know the what the pillows cost in other store but yours seem to be priced right.

I use a simple pricing formula, but that is paired with market research. Also you should decide if you want to down down market (dollar stores), down market(target), mid market(department stores), pre-up market((coach), true luxury(LV,goyard)and super premium/ high luxury market(Hermes/Bergdorf Goodman). I want to be true luxury. But i am just starting out so my prices are on the low end of true luxury..

So that sets you price also. If you want to be downmarket, your prices are a little high, if you want to mid market, your prices are perfect. If you want to be true luxury your prices are very low. If you want to be super premium/high luxury your prices are way, way, too low because pillows from high luxury sellers start at 400$ and go up from there.

As you go from down down market all the way up to high luxury you will make less sales but more profit per item.

I know this is a very long and complicated answer but with some kinds of items where you want to be in the market should have a huge impact on how you price. Pillows are definitely one of those kinds of items because they run from 10$ past the 1000$ price point. and both the 10$ and the $1000 can easily be priced right for what they are.

So for you it should be your costs and materials and profit plus where in the market you want be. For most people where you want to be in the market I also how much work goes into each item. The more work the higher in the market you are.

[SleepingKnight]

Yes, you can price things too low. People expect to pay for handmade items. If the price is too low they think that you may just be a reseller. I think your prices are probably below what others are charging for them here on Etsy. But without doing any research I can not be certain.

Keep your pricing competitive but not on the low side. My only suggestion is to not use nice even numbers for your items. $30 isn't as attractive as $31.50 or $32. I am not sure why but my oddball prices seem to do better.

Remember one important thing, you should always pay yourself at least what it would take for you to work for someone else. If you would not do it for less than $10 an hour for someone else why would you pay yourself less than that?

[CollettasKitchenSink]

I think your items are great and priced reasonably. I think you just need more visiability which means more items in your store and networking. Keep adding to your store and the sales will come.

Good luck.

Blessings,
Colletta

[Former_Member]

I struggle with pricing too.

Two years ago I got desperate and kept lowering them and the cheaper I sold the less I sold until it came to a total standstill and I closed my shop for about 8 months.

The sad fact is that even though I know that I only use prime materials and everything is made with all my love customers tend to just like the photo and looking at the price imagine the quality.

There are some very good tips here.

beautyuncut, I like your example with the toy!

[Former_Member]

I would say that this pillow

http://www.etsy.com/listing/77436743/sale-pair-of-yellow-and-ivory-zig-zag

is way under-priced. The effort you put in having the pattern match in the pleated section deserves to be noticed: it is great work. Also the pattern matching of the front and back is also impeccable. Mention that in your description.

Don't forget to mention the fabric content and try to describe its touch. I f you know the name of the fabric manufacturer, don't hesitate to put its name in your description. A reputable fabric manufacturer will add value to your item.

People who are looking to buy quality handmade items are very interested in these details. They also immediately loose interest in low-priced items.

[Former_Member]

@TangledMetal: really nice and smart comment. I never ever imagine that $31.50 would sound more attractive that $30.
I might have a second look at my pricing calculation an rounding now - on top of SEO :)

[Former_Member]

Wow! Thanks so much for all the thoughtful responses! Everyone has been so helpful. I definiately will take a look at the odd number pricing and adding more info about my materials and detail pictures. I haven't really put a definate price on paying myself either, I figured it was kind of a start up sacrifice, but I will now.

Thanks!!!!!!