Should I raise my prices?

[handmadebyhannah00]

My items don't cost very much to make, and most of don't take very long to make, so my prices are very low. Should I raise my prices? I have been doing very well over the past two months and I feel like if I raise my prices ill lose out on sales. Thanks!

[WilliamsGiftshop]

What you should do with your prices is totally up to you.
But if these were my creations, they would be more expensive.

[Former_Member]

You have to be very competitive with others who sell similar items on Etsy, and have your items show up on the first 3 pages of search. If you are, then good job, and you will keep selling as you are. I know from selling on ebay for 12 yrs. If your on the high end, you may have a really hard time selling. Your keeping your prices low and making profit, and getting customers that will come back for more. LIttle sales add up in time, and so does your customer base.

People are willing to pay more for specialty items that are hand-made by the artist. I think your prices are spot on, but I would not have any under $5, as I see you have. Your work is for sure worth more than that.

Good job! love your items.

[Former_Member]

Yes, I think you should. To what -not sure. But it just doesn't seem like you're making a real profit when you add everything together.

If you click on Community on top, then Online Labs, there are some good videos to watch. If you click the Etsy Success video folder, and scroll over about 20 or so videos there's one called "The Art of Pricing for a Profit." I haven't had a chance to watch in full but what I saw had a ton of helpful tips.

[michellemach]

If a shop were to ask to buy your pieces at wholesale (50% off what you're listing them for on Etsy), would you still make a profit? Not everyone wants to sell their items in brick-and-mortar shops, but if you think you might want to expand, you might do the math to make sure you could do it financially.

[HmacdoPaperCo]

I think you're going to want to raise your prices because if you think about the cost of shipping alone and I mean just the postage, you've got that listed around $2.25 for most items. Does that include the cost of your packing materials: padded envelopes, little bags, etc. plus the .20 listing as you continue to sell? I say raise em.

[Former_Member]

Follow the formula to see if you are charging enough:

(Materials + Labor + Expenses) x 2 = Wholesale x 2 = Retail

I am guessing you aren't charging nearly enough.

[Former_Member]

p.s.- remember to not under-estimate your labor. Minimum wage doesn't cut it.

p.p.s. - having fewer sales at a higher price is better than more sales at a lower price.

[DecorDesignsAndMore]

Greetings Hannah,

When you are either increasing your product prices or lowering them adjust 10% each week so it is gradual.

At 10% each week all of your prices will be increased in 10 weeks. If the price increase affects sales then you can slow now your increasing.

Most restaurants who are good at increasing their prices follow this stategy, and some don't and business drops off.

Best regards,

Mike M.

[Former_Member]

I think you should raise your prices.

And I have to echo what many have said above - would you still make a profit off wholesale prices (i.e. half the retail price)? That can really help inform your prices. If half the retail cost isn't providing you with profit, then you should raise your prices.