Underestimating yourself?

[Sawu]

So I'm a new seller. I've had an etsy account for awhile but I didn't open my shop until December 10th,2012. I made my first sale 3 weeks after opening with only 3 items in my shop (which was a bit of a shock at first since I knew people sometimes would be open for months without a sale). So far I have made 8 sales this month which I'm very happy about but I didn't expect it to happen this fast, therefore I didn't buy a large amount of supplies, which I am now regretting. I'm feeling a bit overwhelmed now because I just returned to college this week after Christmas break and school is taking up most of my time. I'm extremely happy that my business is doing well, but I'm afraid that I won't be able to keep up. Any advice? Has anyone else experienced this?

[elainesgems]

If you feel you're getting behind you could put your shop on vacation until the supplies come in. It's great you're getting sales so quickly!

[Former_Member]

Welcome to Etsy and it's nice to hear you're doing so good. I would say most of us have had to set some kind of schedule to work around our "normal" lives. I work in batches. One day I make a few new items, another day I photograph and edit, then on another day I list the items. This really helps the process, kind of like an assembly line. I also noticed your prices. If those collars are handmade, raise your prices. That will help slow down sales, maybe. However, when you get a sale it will be a higher profit for you.

[michellemach]

Don't be afraid to lengthen your time to ship from 1-3 days to 1-2 weeks or however much longer you need. Most people understand that you are making things by hand and are willing to wait. Just make sure you let them know when to expect their item.

Best of luck to you!

[NancyBags4U]

Your collars are beautiful. I agree with raising the price a bit.

Sometimes it can get overwhelming to get all the work done, but other times you just keep waiting for a sale. This is a very unpredictable venture.

Best of luck to you.

[Sawu]

Thanks everyone for responding! I think I will try to make a set schedule that I can stick to instead of just doing things randomly throughout the week like I do now. Also, all my items are handmade by me but Idk maybe it's because I'm new but I sometimes get afraid to raise my prices for fear that people will see a high price tag and back away. I make a good profit right now...uhh idk does anyone care to expand on why I should raise my prices? I'm just a little hesitant right now

[Former_Member]

Congrats on your success!

I'd suggest that you set yourself up a good schedule so you have time to dedicate to your school work and your shop.

I'd also be sure to set up a business plan and a budget for your shop.

You may also want to take a good look at your pricing strategy.

Pricing is generally based on
1) cost of materials
2) cost of your time
3) other expenses (paypal fees, etsy fees, etc)
4) profit you want for an item.

This total gives you your 'base' rate or wholesale price - the price you would sell at if you were selling a large quantity of the same item.

Your retail (Etsy) price is generally 2x your wholesale price.

So when you look at your Peter Pan collars
http://www.etsy.com/listing/121332648/ivory-pearl-peter-pan-collar-necklace
are you really pricing so that you are making a profit at $20 each once you've paid for your time and materials?

[CelesteCraft]

Great question. First, you want to calculate your time spent on each item and make sure you pay yourself a good hourly wage. Otherwise, you'll get burnt out or resentful when a bunch of orders come in. You're spending your time on the work instead of studying or spending time on other joys, so make it truly worth your while.

Secondly, an item that is priced too cheaply will also cause people to back away because they assume it's quick or shoddy work or poor quality materials. You don't want to be thought of as a WalMart when you're selling boutique quality items.

I'm glad you're finding success! Have fun!

[IndigoEmber]

Hello!

Congratulations on your sales, especially being a new shop! I can relate to some of your experiences. I have a full plate like yours meaning working a full-time job, taking two graduate level courses, and running an Etsy shop. Thankfully, my husband been understanding when things get very hectic! :-)

I opened my shop early October with a selection of Christmas greeting cards. Received my first sale in November. Starting late November, my shop was busy with Christmas orders and of course, I had finals and major work project deliverables due around that time. I had a lot of late nights (meaning staying up until 2am and at times 4am). There were a few times I survived with a mere 2 hours of sleep. I got through it and it was exciting to fulfill the Christmas orders.

Now, I'm sorta in the same boat, but learned a few things from my Christmas holiday experience. I stocked up a little more for V-day. However, once again, I didn't anticipate the flood of orders I'm receiving in January for my Valentine's Day cards. So far, received 34 orders/36 sales! It can get overwhelming, but at the same time it's so exciting to see my shop doing well. I also love having this creative outlet!

I think having good time management and organizational skills have helped me get through the crazy times! :-) My advice is just keep plugging away. You may lose sleep here and there, but eventually things will calm down. Do not be afraid to raise your prices. I raised my prices beginning of January and my V-day sales are close to doubling my Christmas sales. Finally, if you need to lengthen your processing time, do not feel afraid to do so.

Congratulations on your sales thus far!

[Sawu]

Thanks again everyone for responding! So this is how I come up with my prices that I currently have

I buy my pearls in bulk so it costs very little to make an individual collar
It takes me around 30 mins or less to complete a pearl collar (I work pretty fast)
The materials I use are very low cost because I buy them in bulk or they can be used multiple times (for example, one bottle of glue can be used to make around 8 collars)

The etsy fees are pretty low also.

Idk, I don't think I'm pricing my items too cheaply because my materials are very inexpensive and I work really fast (I can make 2 maybe 3 collars in less than an hour) But I do agree that I could raise them, espescially my rhinestone collars because someone in the forums once told me that they haven't seen rhinestone collars like mine before and I should raise the price because it is unique. What do you guys think? Sorry for so many questions I'm just trying to understand business-running and Etsy haha

[WeddingMonograms]

I can relate to feeling overwhelmed. I sold on etsy for several years while going to college and holding down a full time job. Its tough!

Take things one step at a time. And definitely take breaks when it comes to finals and midterms and such!

It can't hurt to evaluate your time spent and make sure your paying yourself around $50 an hour.

Also I've had pretty good experiences telling clients I was in college, etc and that their order would be completed in x number of days. Usually most customers are quite accomodating as long as you keep the communication open. Knowing that I had extra time helped aleviate the stress a bit. :)

Congrats on your sales and best wishes for the future!