Hi,
I've been selling on Etsy in one form or another since 2007. And as always, I tend to do everything backwards. I didn't really start reading or paying attention to the blogs or sellers handbook until just this year. Shame on me.
My dream, at first, was just to have a shop that was my excuse for being able to keep buying all the pretty fabrics and supplies (See, honey! I can sell this, so its okay!) But now, my dream has grown. My shop supports my family and I want a brick and mortar store some day. And of course, I want to make MONEY!
I've been writing a series of articles on my own blog about how to grow a small business from the ground up, and of course, part my research included pricing formulas. Now, here's where I ran into an issue and I'd actually like to see more about it in the blog and Seller's handbook.
The formula given calls for:
Materials + Labor + Expenses + Profit = Wholesale.
Can you guess where my issue was? Yup, that dreaded P word.. PROFIT. I watched the videos and got a bit of a better understanding but.. here's what I don't get.
If Profit is my value + Perceived Market value, then how do I break that down and come up with the profit for each product? That formula wasn't given. So, do I come up with my profit for a year? and then divide by 12 and then by total number of certain products I can create in a month? Clarity on this would be most helpful, because frankly, I want to make money. I don't know anyone who doesn't.