Please don't sell yourself short

[PiecesOfMePaperCraft]

I just spent an hour typing up a few new listings in draft mode. I did a little research on Etsy to make sure I was pricing my items in line with other similar items (I don't want them too low or too high). After doing my research I realized if I want to make money on my work, I have no choice but to set my prices higher than other sellers.

My gripe: why on earth would someone price an item at 50 cents? I won't say what the item is because I don't want to call anyone out. Seriously, it's a handmade item selling for 50 cents! This is not a clearance item because the seller has other similar items for the same price. Matter of fact, all the shop's items are underpriced and they have a ton of sales.

I did a little calculating on http://web.archive.org/web/20110703062758/http://www.rolbe.com/etsy.htm and figured out what my price needs to be for me to get paid for my time. The person selling their item for 50 cents is making nothing on their item after fees. IIt probably doesn't even cover supply costs. Why bother?

I apologize if this thread isn't in the spirit of Etsy, but it's so frustrating when I try to be competitive with my prices and I see other sellers giving their items away.

Vent over. Moving on.

[seemomster]

I think many people on Etsy view it as a hobby, and merely want to make back the cost of their supplies. It's bad in jewelry, as well. Another thought--we are an international market place. In some parts of the world a "living wage" is much lower than in others.

[PiecesOfMePaperCraft]

This was a U.S. based seller that I saw.

I'll keep reminding myself that they have to sell 100x more than me to make the same amount of money. :)

[CatherineMarissa]

As Melanie said, many people are not trying to run a business but rather get back the cost of their supplies. Also, some people are rewarded by the thrill of selling their handmade work more than the money (hope that wording makes sense - - money is like an after thought to the excitement of sending your work out into the world).

[seemomster]

Judy--that's the thing...I don't think they are TRYING to make money. You have nice product...keep doing what you are doing.

[Former_Member]

As a seller this really used to bother me until I started thinking like a buyer. I thought to myself, if I were a buyer and something was vastly under priced in its category, I tend to wonder what is "wrong" with it. No one would buy a $10 brand new iPod without being curious as to why it would be priced so low. You would simply pass over it. People associate price with quality.

[PiecesOfMePaperCraft]

Thanks for the input. I still don't get why someone would do that, but I won't begrudge someone who enjoys creating for the sake of creating. My shop is a hobby for me as well but I still enjoy getting paid, which is why I'm here!

I'll continue doing what I'm doing and will do my best to ignore the under priced items.

Angie, I love your shop name! You've got great items too (so warm and cozy!).

[DancewithJewels]

Judy- you have great items, quality work,and great pics!

[PIXELGRINphotography]

Did it say PIF anywhere? Maybe it was a Pay It Forward deal :)

[Wirelings]

Lots of sellers post with small prices but make a ton on shipping.

[PiecesOfMePaperCraft]

Jennifer, no it didn't say PIF. That's the first thing I looked for.

Michelle, shipping was less than $1.00.

Harriet, thank you so much for the nice comment. I appreciate it! I'm in the process of redoing all my photos since I got a light box for Christmas. :)

[notesfromtheattic]

Judy, your shop looks very professional and your products are well-presented and in my opinion, reasonably priced. I doubt if your low-priced competiition will be here for the long haul. Eventually they will move on to something else...

[Former_Member]

Thank you for this thread-I sometimes feel like I have to under price my items to get sales but this is a good reminder to charge what they are worth and what I am worth. Thanks for the reminder!

[Former_Member]

I totally agree with Angie. I definitely pass up the "too good to be true" prices because I'm suspicious of the quality.

[Former_Member]

I can understand where you're coming from, but I also feel that I'm in the same boat as well. I know that as a buyer if something is priced way too low I wonder why it is the price it is. When it comes to buying supplies to make my products, I will wonder why some vendors charge less for certain supplies, too. Even when I go out to buy things I need, I'll check and double check the beads I want to buy to make sure they are good quality. I'd rather spend a little more and get a brighter gemstone than get something that looks dull for much less.

On the other hand, I asked for a critique of my store the other day. I don't have many items listed yet and I have more things that I've created and I need to work on preparing those listings. One thing I asked about was pricing. Looking at the products you have in your store I couldn't understand why something similar would go for only 50c or $1. I think you have beautiful items, so prices that low would come as a surprise. Maybe it's just me, but I find it's harder for me to gauge a price on my own work. I think that we're (or maybe it's me) are more critical of ourselves - it's not that I don't take pride in what I make or value my work, but I do have a harder time deciding what I should price my items at. Some of the feedback I received in my critique was that my items were under priced. For me, that came as a surprise. I was worried about what a good price range was and I think it's a lot easier for an outside eye to look at what you've created and tell you as a buyer what they would spend. Again, that could just be the way I see it. I wouldn't price my items at 50c because it wouldn't even cover the COGS, but I sometimes hesitate in raising my prices.

It does make me wonder why some people do it, though. As someone else mentioned, the required wage to live in some places may be much less than where you or I are, though you did say the shop was of a US seller. I know I saw an international shop selling necklaces, mostly just pendants on a chain, for just a few dollars each with shipping. They have a ton of sales and lots of feedback, but I wondered the same thing. How are they able to cover the cost of their materials and shipping to keep their shop running?

[Former_Member]

@Alexandra - I watched the "Pricing for Profit" workshop (4 times actually) and it made me feel a lot better about charging what I need to charge.

[TreeCraftDiary]

I did see a lot of shops with low priced items and they got tons of sales.
This make me wonder how actually to price ourselves. As if a shop with higher priced items will be having a hard time to get a sale rather than a shop with low priced items.

[Former_Member]

@Annie, thank you for mentioning that! I did a search for the video and when it started to talk about what to charge for labour, aside from the materials and overhead, as well as wholesale vs retail price it makes a lot more sense.

Sorry to get slightly off track -- but thanks for pointing that out!

[PaintedSea]

Valid points all around and a valid question to raise. In the end you have to do the best for YOU. Make a calculation based on all of our costs and your end value. What you want out of your business. Most of us our in it to BOTH make money and do what we love. What a wonderful opportunity we have here on Etsy to do that, seriously. And can I just say, you get what you pay for right. I agree with Angie, If I were a buyer, I would beware of a grossly underpriced item.
Go with your gut.
Do what you love
Success is coming. .

[Former_Member]

I raised my prices today, for the gazillonth time, and I hope it's the last time for a long time. No sales today though! I hope I didn't disappoint anyone by doing that.

[PAPERFLORISTS]

I know what PIF is in general but, what is PIF in the Etsy world?
Judy, your cards are beautiful and very well made. They don't look cheap so why should you sell them for cheap? Answer: you shouldn't! :-)

[Former_Member]

I think the idea of PIF on Etsy is just selling something at say the cost of shipping and the listing, or at the cost of the item and shipping for someone else to use or re-purpose. I saw a shop banner that someone was selling for 20c, basically just the cost to list the item. It was a banner they had made and no longer were using and said they were listing it so that someone else could put it to use.

[Former_Member]

Whether I sell myself short or not doesn't seem to matter to people searching for jewelry since pricing is the least of my problem.

[Former_Member]

I think the same way and what I do now is I set up a price in my head and then I start to see what other sellers are pricing at I sell vintage so it is a bit different and I have noticed once the cheaper one sells then I have a chance as I am not going to sell for cheaper to get the sale I will hold out for the right buyer.

I like this story I bought a book on ebay for 1.00 Free shipping and I got the book and the shipping cost 2.00 so this seller lost a 1.00 Why would anyone do this???

I Cost everything out to my P&L and then I add some and list and it usually turns out ok.

[Former_Member]

It's a catch 22.

If you charge fair market value you will get under charged. If you don't you are selling yourself short.

The best thing to do is to do you. I sell much less than most of those in my category. But my quality is very high and all my customers are very happy. I even offer a 2 year warranty. My competitors can't and don't do that.

K

But I still sell less and make much less money.