What equation and/or tool do you use to price your items?

[#1]

Hi,

If I haven't met you already, my name is Abby and I am another member of our Seller Education team. I focus on insights for our group, using data, research and analysis to ensure that we're creating educational programs and content that best fits your business needs. As I've mentioned in my recent seller handbook articles ( https://blog.etsy.com/en/authors/abbyfeuer/), I'm a total math and excel nerd - and particularly love formulas that help our sellers succeed.

We're working on some new content around pricing for your shops. Mind providing your answers to ANY or ALL of the following questions in the thread below?

*** Which pricing equations do you use? Why? If you don't use an equation, why not?
*** What pricing tools or calculators do you use?
*** Once you've made a sale, how do you know how much profit you've made?

I will jump back into this team from time to time to get your input on topics like this one. Thanks for your help - can't wait to get to know y'all better.

Abby

[AliceMagninAtelier]

material+
making time+
shipping+
Etsy fees+
bank fees= manufacture price

manufacture price x 2 to 2.5 = retail price, I do not have a wholesale price however.

I also compare with what's on the market so that my price make sense to, and if not won t continue the line.

I make all on Excel, to know my margin I divide my income by 3 and think that luckily a third is my income :)

[CedarwoodCreations]

I don't use a calculation. I started off selling my items really inexpensively to see how they sold and they did well. I upped the price by $1 each year for a few years to see if they would continue to sell and they have.
I'm comfortable with my prices now but it took years to figure out where I needed to be.

[PavioseParafina]

I have created an excel where I list all candle designs I create and have/had for sale.
In the formula I use to calculate my price I take into account all materials (type of wax, dyes, essences, wick, other ingredients, etc), then I also give a percentage for design, work and overheads (for those costs I'm unable to fully count).
After I reach the price I add all fees (etsy/direct checkout and paypal) sum it up and have the final price.
This allows me to have coupon codes and have sales from time to time. I also sell on craft shows where in some candles I lower their price as a way to reach and make new clients.

How I know how much profit I make? I also have an excel where I register everything I invest and also for how much I sold a candle, be it on etsy or on a craft show. With these two excel sheets I have an idea of how much I profit.

Nevertheless, I will read all replies to this post, it might help me with my own formula :).

[PavioseParafina]

Oh and I also check the prices from other candlemakers!

[Former_Member]

I am new in Etsy and am not sure how to calculate. Wood and acrylic paint now don't cost much at all. My time is precious just like all sellers so considering all other costs like package etc, how should I calculate prices.

Please advise me. Thank you

[PaperBoundLove]

I don't use pricing calculator because most of my work don't require "material", but plenty of time and creativity.
And it's so hard to determine how much time I spend on one design too.

I normally study other well established shops and see how they price their items. I adjust my price now and then, because a lot of the times, my prices are low.

I also try and apply what my economics professor taught me, LOL! Like pricing strategy, etc.

x

[DJVintageCollectible]

This is something I am constantly working on, I research the item, factor in the time I spend buying, cleaning photographing, and the item ( this is a long process).

Most of my items are probable under priced, but as long as I make a little profit I am good. Actually, I call my shop the thrift store because of how low the prices are.

happy Thanksgiving,

[Former_Member]

I don't use an equation because I there is no set price a vintage item will sell for. Each item is individual and unique and will sell for a higher price depending on condition, age and style.

I have to consider how much I think I can get for an item when selling it on before deciding whether to purchase it and I have to take into account whether the profit would be worth my while.

I do use a basic equation to work out what my profit margin would be though when deciding what price to list at, just to ensure I am making a worthwhile profit. Mainly though I base my prices on what other similar items are selling for on Etsy and try to take into account my items condition compared to ones already listed.

[Former_Member]

Thanks for all of your insightful posts! It sounds like a balance of calculations and market assessment is the essential combination - and that the exact balance varies by what you sell.

This information will definitely help as we produce this education. Thanks again for helping me and one another.

[Former_Member]

I don't use an equation and my prices are fixed at this point, though they vary for custom orders depending on what my customers request. My prices are based on market prices.

My items are digital, so there are no costs for raw materials in that sense, but I do factor in my time costs.