Help! Question on being asked to discount items...

[Former_Member]

So, my profit margins aren't retail prices. When asked if you'll give a discount...you offer what you can afford...and then asked a second time for a "deal" how would you best word a response to not sound offensive or offended?

Does this then mean that my prices are too low? I wish I could work for free...

I would love any advice/experience you all have - Thanks!

[Former_Member]

Well, I stuck to my price, offered my best discount and was as nice and informative as I could be. Do you mark up your prices so that you are able to give greater discounts? I'v always disliked that retail game, but wonder if by not being able to offer bigger percentages, if I'm shooting myself in the foot... Well, it's 4pm and everything stops for tea! I even have some crumpets to console myself.

[Former_Member]

you have to look at what it cost you to make your items. if you are discounting and not making anything or barely anything then its not going to help you to give a lesser price. just let them know that you price your items the best you can without overcharging. you should price your items so that if you were to offer a 20% discount you are still covering your cost and making something for your time. i don't think people keep in mind that etsy and paypal als get a fee.

[aboundingtreasures]

Thanks for the question and the advice!

I recently had 4 items accepted in a store in a city near us *on consignment* and I just got word today that 1 sold on the wknd and another is spoken for ... the store owners want a few more pieces from me.

A short while later, I got an email request from someone seeing them in the store who wants me to create 2 custom orders.

All sounds great right?!!

Then the realization hit that my Etsy prices were way lower than what the store was charging even though we're splitting 50/50 ~ I've just done a re-do on pricing in my shop to bring the gap a tiny bit closer together ...

I've always found pricing the most difficult part of Etsy but from the various teams I'm on, I'm getting all kinds of great advice that is helping immensely and I'm no longer afraid to allow myself to actually earn something from what I do!

I agree that most people probably don't realize that etsy and PayPal take their fees out of what you're charging.

[Former_Member]

hortenseandeloise I’ve only offered a discount when someone is buying several items at once. I used a promotional price from a previous “sale”.

You’re right aboundingtreasures, pricing is really hard on Etsy. (congrats on the retail sales!) I’ve been edging up my pricing so I can start looking to the wholesale market. I started my shop prices (like many) too low.

[vtdesigns]

I'm glad you stuck to your price. I don't think people realize just how much time goes into creating an item aside from the materials and Etsy and Paypal fees.

[Former_Member]

I totally agree with all the advice given!! I think, especially when first starting out, people are too scared to charge too much so they undercharge. Lots of times, for myself, if I see an item that I like and it seems really inexpensive, I actually think there may be somethign wrong with it (like low quality or something!)

[Former_Member]

Thanks for all the advice and comments. I guess I worry that a parent isn't going to spend over a certain amount on a toy.

Jewelry has value on it's own when dealing with precious stones and metals so much easier to buy in bulk at wholesale and have a better "paycheck". I want to have diversity in my sewn items and the only place I've found wholesale for fabric requires buying a bolt. eek! Thats a lot of the same thing...

Two items in my store, I am basically making for free if any discount is applied. Of course it was one of these that the person wanted super discounts on.... Murphy's Law, I guess. It all worked out well and I certainly am learning as I go. I agree, pricing is the most difficult. You've all given a lot of really great advice and insight.

Hadn't thought about questioning the quality because of price. My items are incredibly well made, so I certainly don't want to give the impression they may not be.

Thanks again!

[Former_Member]

I've told many family members that my biggest struggle is with pricing items. As we all know, handmade items take a lot of effort on our part, which is why we also need to price to get a return on our labor. It's definitely a balancing act because you want things to sell, but you also don't want to sell it for "free" as you put it Hortense.

There are also the other costs of selling our items (packaging, postage, Etsy & Paypal fees!!) to factor in. When I worked as a floral designer and would consult with brides, a lot of times I found myself needing to educate my clients on why things cost what they did. Until you've actually spent the time trying to make something or know all of the costs that the seller takes on, it can be hard to wrap your head around why something costs a certain price.

BTW.... does anyone else feel like the Paypal fees are a little outrageous?? Taking almost 8% when we are already trying to price things reasonably is hard on the seller. I know they are also providing a service, but I feel like 8% seems a bit high.

Emily