Wednesday, May 22, 2013

The Ultimate Guide to Pricing Your Products on Etsy

The Ultimate Guide to Pricing Your Products on Etsy |

Putting a price on your work is often one of the most intimidating first steps to selling on Etsy. Your price communicates your product’s value to customers. 

Instead of asking yourself what your product is worth, you may be tempted to ask yourself what customers will pay. With this mindset you are underestimating the thoughts of a savvy shopper looking for quality handmade goods.

Let’s take a look as some pricing principles that will ultimately guide you to the right price point for your products that will reflect the value of your work, allow you to offer wholesale pricing to retailers and provide you with a fair profit margin. 

I was at the cutting counter of a fabric store recently and recall a conversation I had with the sales person. It is not uncommon for them to ask me what I plan to do with the fabric I am purchasing so when I told her that I would be creating personalized bags for my Etsy shop she chimed in and told me that she had been thinking of opening her own Etsy shop.

She explained that she likes to create things and her husband had been encouraging her to sell them. She went on to say that she thought about pricing them just $2 above the cost of materials. 

I’m not sure how she came up with that price point but it certainly wouldn’t be long before she started to question if she’s being a good boss to herself.