The Basics of Pricing Online Lab

[#1]

Sellers!

We’re in the throes of the month of May and I wanted to reach out to you about the topic du jour this month, pricing. From mastering the pricing formula to practicing pricing strategies, this topic is one that takes time and energy to master. I’m here today to tell you about a lab we’re having later this week and want to encourage you all to come out and get your questions answered.

What: The Basics of Pricing with Danielle and Michelle
When: Thursday, May 10 - 3:00 p.m. ET
Where: Etsy’s Online Labs, www.etsy.me/onlinelabs
How: To RSVP to attend an Online Lab click on the blue “RSVP now” button next to the lab you’d like to attend. We’ll send you a confirmation email and then remind you right before the lab starts.

Leave your pricing questions in this thread and we’ll answer a few during the Online Lab LIVE!

Nickey

[PresentPerfectStudio]

A Russian handmade selling platform has an option that allows buyers offer their own price (if the seller agrees to have that option) for items which are for sale. This gives a clue to the seller that the buyer likes the item but is willing to buy it at a lower price. Probably not all the crafters agree to sell their creations at lower prices but for some it might be a good indicator that prices need to be lowered down. In my case the items are not so cheap and I could probably make discounts for buyers especially during slow periods but now I do not understand whether I do not have sales because of the prices being high or my items not being appealing enough to the public.
Is it possible to have a similar option on Etsy?
Thanks!

[Adironstix]

I get a fair number of views and likes but sales are sluggish.My items are all one of a kind items so I have no way to compare prices How can I find if people feel my prices are too high or if they are just window shopping?

[Former_Member]

Pricing is an on going conversation among us artists. My question: Does the region you live in factor into your price. I travel enough to see that what sells for $85 in NY would never sell in SC. Supplies cost the same and time should cost the same so how do you find a balance?

[Rt9NJvintageFun]

Nickey and Michelle,

Selling vintage is a Pandora's box. After doing my research, telling a backstop, taking pics, developing a cohesive Shop, creating a following of admirers, providing a great experience for my actual buyers. I has become apparent that the same/similar vintage items in different parts of the country are priced across the board.

I price my items to sell, so I can restock weekly to provide a Fun experience window shopping in my Shop. I have numerous customers in California, and it has been so apparent that prices are at least 20-35% higher than mine.

What are your thoughts about pricing concerning this issue, do I raise my prices to stimulate my cash flow or continue to use the method I am using now?

What do you both think would be the best business decision?

See you at the Lab! And thanks for this thread..

[TheJewelsILove]

Hi,
is it always a right strategy to triple the materials cost to price your item?
Thanks in advance,
Kathy

[thevicagirl]

It does sound good, pricing is always hard.

[Former_Member]

I don't have a clue about pricing, unless I price low and sell well in person at art fests. I haven't had much luck on Etsy and kinda use it as a portfolio these days. I need help! :)

[Former_Member]

Kathy from KathysJewelryForYou says
Hi,
is it always a right strategy to triple the materials cost to price your item?
Thanks in advance,
Kathy

----------

Kathy, are you pricing based only on materials cost? Do you charge for your time it takes to make your items?

[BooBahBlue]

My comment is to Veronica and Heater off page 1...I have the same problem...If I seriously added up gas, photo time, and doubled it all....holy moly, it would be above and beyond what seems like a reasonable price to me.
I feel like my hourly rate IS my profit. I just don't see how its feasible to charge both. Does anyone really price that way?

[Former_Member]

I'm stumped and have every single one of the same questions. Basically, how do you price your items to sell?

[Former_Member]

Hi, I will love this forum!

I want to ask about shipping pricing, I should charge just for the price of the ship by it self or the shipping supplies too, eje, If the item is return to me, the shipping supplies and time will not be reusable, so I only can resell the item it self.
Or I have to take this costs into the pricing of the item?

Thank You
Del

[Former_Member]

I excited for this one! Woooo hoooo!!!

[Former_Member]

Having worked in both retail and wholesale design business, I have to tell you that retail is 3x whole sale. Not 2x. Most retail businesses work on a 75 to 78% margin.
So a $2.00 whole sales translates to $6.00 retail and then add sales tax and shipping to that figure.

[Former_Member]

Ok....please forgive me if this has been asked. But is there a formula for figuring out your labor costs? A friend told me that you will never get back the time in which you spent making the item so I have discounted my prices because of that. But now I am wondering...

[Former_Member]

I am looking forward to sharing ideas with other Etsy sellers who are serious about building a business here. I have many views and 1-3 indicate they like the items in my shop... Still am inexperienced so I am Looking forward to learning how to price in todays economy.
Great questions... I am excited about the lab...

[Former_Member]

Will you be covering pricing vintage and antiques? I would be interested what you feedback on this subject would be. Thanks,

[Former_Member]

isn't capitalism the greatest problem for jewellery makers and the like? even if people are willing to spent their money on handmade items, people still don't understand how much time consuming it is, to make even a simple piece. i mean usually retail sell their stuff only wholesale x 3 because it has been cheaply produced in china. you really need a brilliant marketing pitch and sell something super trendy to get something out of which you have put so much investment in, or you will always sell undervalue... that's my biggest problem. people still have a distorted view of how much something should cost

[ionesAttic]

thoughtful question posted by Rt9NJvintageFun regarding the regional perceived value of identical vintage items.

In my experience, buyers are willing to pay in the middle to upper middle range for the same vintage item, if they are assured of excellent customer service.

[MerlinMN]

I am looking forward to the two labs coming up. They are a long time coming, but I hope it doesn't cause a frenzy of re-pricing. haha

[Former_Member]

price and traffic

[Former_Member]

Hi,

I'm pretty new to etsy and I am still trying to figure out, how to price my jewelry pieces. I've tried to use a formula, that I discovered in a book once and it goes like this:

( materials + packaging) x 4 + 10% overhead + my hourly rate

but the prices seem a little high. On the other hand I don't want to sell myself short.. I can't wait to see what our wonderfull Etsy team came up with (-:

[Former_Member]

Tamara is right.. People tend to compare a handmade piece of jewelry to the cheap mass productions made in China. They have no idea how much work is being put in each piece.
My husband is always telling me I should charge more because he sees how much work it really is.. but I don't want people to think that my stuff is overpriced..

[vw53]

I am really looking forward to this lab!

[Former_Member]

First, I've seen several different pricing formulas, and I don't know which is the most appropriate to use for my jewelry. I will also be opening a greetings shop soon -- paper products. Do I use the same formula for greeting cards as I would for my jewelry?

Second, how do I figure the cost of supplies when I don't remember what I paid for them? I've hoarded supplies for almost 10 years but only started saving my receipts a year ago.

Then, how do I figure the cost of supplies I bought at a significant discount? For example, an unopened, brand new package of beads that I bought for 50 cents at a yard sale? Obviously they are worth more than what I paid.

Last, I was recently given a milk crate full of miscellaneous jewelry supplies, all unopened and without packaging, for free. How do I figure my costs in this situation?

[Former_Member]

Looking forward to this!