The Etsy Blog

A Simple Formula for Pricing Your Work

Etsy.com handmade and vintage goods

daniellexo

Imagine this: a beautiful jewelry studio, a soldering station, an anvil on a nice old worn wooden stump, a handmade jewelry bench, and on top of all this lie piles of finished pieces. Behind the bench sits a jeweler who has yet to sell a single one of her creations. What’s holding this talented artisan back? From my years of listening to your stories, putting a price on your work is one of the most intimidating first steps to selling, and delays many from opening their shop. I’m here to share my favorite pricing formula with you, and to break it down so you have the confidence to get out there and sell!

Know the Formula

Here’s my favorite formula:

Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail

I picked this up from the amazing Megan Auman. What I love about this formula is that your profit is properly accounted for!

Now let’s go through every part of this formula and break it down.

Materials

Make sure to cover all your material fees. Often forgotten: the little things like the cost of thread, and the bigger things like the cost of packaging. If you’re going to “guesstimate,” err on the higher side!

Labor

If someone wanted to hire you and they offered you $7 an hour, what would you think of that deal? Be a good boss to yourself and do a bit of research. How much does a seamstress make in San Francisco? Find out! (Also remember, you’re probably more than a seamstress – you are the designer, the marketing department, the accountant, the janitor, and the administrative assistant, too.)

Expenses

Bubble wrap, that ebook  purchased at 3 a.m., studio rent, bus passes required to make it to the studio every day, a new scale for your shipping station. How the heck can you fit all these things into the price of a single item?

Here’s a  way to do that:

  1. Jot down every expense you can think of — for example, include your Etsy fees, office supplies, rent or utilities.
  2. Next, come up with the number of items you’d like to sell a month. Divide that number into the total expenses.

Tip: Start doing two things to help you come up with an even more exact price:

  1. Track your expenses carefully so you can come back to this as you learn more about selling! I suggest trying out Outright – a free online accounting tool.
  2. Start figuring out the big investments. How many items can you get out of that sewing machine? How long will that postage printer last before it needs to be replaced?

Profit

Think hard: where do you want this business to go? Do you want to quit your day job? Do you want to pay off a student loan? Accounting for profit now will help you get there. This number really depends on what you are selling, and will make up for someone like a printmaker, whose material costs are low, labor hours might be low, but should be paid for their unique talent and point of view! I leave this up to you. I’m trusting you here — don’t disappoint me with a low ball number!

Bringing It All Together

All right, this gets us to our wholesale price. Some of you might wonder if you can use the wholesale price in your Etsy shop. Wouldn’t this be a a great way to offer your work at an affordable price? No, no, no. Here’s why I’m going to beg you to double your wholesale price and sell your work at a true retail price:

  1. Selling your work at a wholesale rate undervalues those who price their work at the proper retail price. When the majority of sellers in a category price their work thoughtfully, the entire category benefits.
  2. Customers will wonder, “Why?” Why is your work so much lower than everyone else? Is it because it’s not handmade? Is it because you’re using cheaper materials? Your price tells a story: make that story a good one!
  3. You’re putting yourself at a disadvantage. Let’s say a big catalog reaches out to you and says, “We’d like to buy 100 of these items! Please let us know what your wholesale prices are.” This is a big opportunity; an opportunity you can’t afford to take.

Did you just come up with a price that you are sure the market won’t respond to? Here’s the trick: if the item is priced too high for the market, it’s not the price you need to alter, it’s the design or the way you produce your work. Get creative and see how you can adjust the item to reduce your costs. Can you buy your materials discounted in bulk? Can you produce the work in multiples, reducing the labor? Don’t take the easy way out by slashing your prices.

Remember, the right prices will allow you to reach your small business goals.

What’s your best pricing tip? Share your ideas in the comments.

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  • nadene

    Even Howard from nadene says: Featured

    it's helpful to use a freelance hourly wage calculator (many online) to find out what your ideal/best case/scraping by case hourly wage is. Many people pay themselves too little to be sustainable and this has the same negative effects on business as selling retail at your wholesale price.

    1 year ago

  • girlpower

    Emily from Girlpower says:

    Thanks! This is really helpful, and I certainly need to use it!

    1 year ago

  • BendyHeaven

    Jennifer from BendyHeaven says:

    Really great article, a new, small seller will find a lot to us in this! I have a small store, so these are great tips!

    1 year ago

  • BooandBooFactory

    Christina Anton from BooandBooFactory says:

    Pricing is so important and tricky! Thank you for the wonderful support and information!

    1 year ago

  • BendyHeaven

    Jennifer from BendyHeaven says:

    use, not us..... sorry.

    1 year ago

  • BendyHeaven

    Jennifer from BendyHeaven says:

    Use, no us. Sorry.

    1 year ago

  • bhangtiez

    Jana from bhangtiez says:

    This is really helpful. I especially like the formula for adding in expenses like utilities, bus pass, etc. Thank you for sharing this valuable information.

    1 year ago

  • muffintopdesigns

    cylene from TheLovelySmith says:

    even after working on my etsy shop for almost 5 years, i still struggle with valuing my work and figuring out how to accurately price my items! thank you again for the reminders - and the amazing formula!

    1 year ago

  • Iammie

    iammie from iammie says:

    Great tips! Thanks for sharing!

    1 year ago

  • olimaxsoap

    Anita from ollieandmaxsoapco says:

    Great article. Thanks so much for simplifying the formula!

    1 year ago

  • josiesdesign

    Josie from JosiesDesign says:

    Very helpful article! Thank you!!

    1 year ago

  • stoastn

    Abbey Vanderlin from stoastn says:

    SO great! Thank you, Danielle!

    1 year ago

  • nadene

    Even Howard from nadene says: Featured

    it's helpful to use a freelance hourly wage calculator (many online) to find out what your ideal/best case/scraping by case hourly wage is. Many people pay themselves too little to be sustainable and this has the same negative effects on business as selling retail at your wholesale price.

    1 year ago

  • hopestarbound

    Brittany Bevelle from hopestarbound says:

    Thanks for this article, Danielle! It's a bit awkward to have real retail prices, but I know it will benefit me later on.

    1 year ago

  • sallyannlivingston

    Sally-Ann Livingston from TheNavigatrix says:

    Very useful, thanks. One point I will make after having watched the related online lab about the basics of pricing, is the difference between UK and US price listings. If I list something as £6, it will come up as something like $9.66, an odd looking amount. Now, I'd like to keep my £ as simple, even numbers but how much does this affect my US customers? Personally, as each of my items is by it's nature a one off (even my earrings are assymetrical!) I find it tricky to use the formula and still be comfortable with the (perceived) high price that results. But that could just be my second-hand unhelpful beliefs about money that are keeping my prices modest. ( I'm working on developing a 'Prosperity Consciousness thanks to Rhonda Byrne and Louise Hay! - but that's a whole other topic!!) Thankyou for all your valuable help :)

    1 year ago

  • LtdEditionOutfits

    LtdEditionOutfits from RoseTempleTM says:

    So helpful ! I am working on that right now. Thank you Danielle

    1 year ago

  • MiruStudios

    Ming Lee from MiruStudios says:

    thanks for this tip. But at times I find it hard to price it the "right" way, when others who make the same thing as I, sell less than half the price. I really don't know how they do it. Even if I don't take the international freight cost of shipping my supplies to me.. So at times, I do find it hard to decide. Do you lower it, but if I do, I can barely make a living. Any advise. By the way, is there a way to find out the ET time equivalent to CST time? I seem to have a hard time converting it! help anyone =)

    1 year ago

  • StringBeardCraftery

    Stephanie from StringBeardCraftery says:

    Pricing has always been difficult, especially since I'm a new shop and still trying to figure out what my overhead actually is! Thanks for the great article!

    1 year ago

  • volkerwandering

    Jess from volkerwandering says:

    Awesome article! I always keep my prices in order to move more items, it works!

    1 year ago

  • OneElevenStudio

    Tori from OneElevenStudio says:

    I took notes from the online forum you did on pricing but it's good to actually have it written out. Thanks!

    1 year ago

  • karenscraftingcorner

    Karen Irwin from karenscraftingcorner says:

    I shop alot and know what costume jewelry can go for, both high and low end. I try to price mine at a price I feel comfortable paying. Taking into account product costs and paying myself something.

    1 year ago

  • hiptote

    Melissa Miller from hiptote says:

    Very helpful! I definitely will be putting this information to good use. This motivates me to keep better records of what I've been doing. Hopefully this article reaches more of us!

    1 year ago

  • guziks

    Stephanie from Phylogeny says:

    I like the equation! As of right now, I think my prices are right on target for what I want to sell, but I'll definitely keep this in mind when I expand the shop later this year with hand painted ornaments. Thanks Etsy :)

    1 year ago

  • hiptote

    Melissa Miller from hiptote says:

    Very helpful, thanks! I definitely will be putting this information to good use. This motivates me to keep better records of what I've been doing. Hopefully this article reaches more of us!

    1 year ago

  • ShopJanery

    ShopJanery from ShopJanery says:

    I agree, this is a great formula. But like others have mentioned here and in other forums - it's tough to stand by this when so many makers are pricing their products so low in an attempt to compete. I don't know how they do it. Any tips on how to deal with that?

    1 year ago

  • ACupOfSparkle

    ACupOfSparkle from ACupOfSparkle says:

    This is a good calculation. Well explained!

    1 year ago

  • peacesofindigo

    Dawanna Young from peacesofindigo says:

    Brilliant way to calculate the value of your work. I'm looking forward to this!

    1 year ago

  • SecondEditionJewelry

    Emily Clayton from SecondEditionJewelry says:

    Amazing advice! Thank you so much!

    1 year ago

  • vbirschbach

    Valerie Birschbach from vbirschbach says:

    It just kills me when I see grossly under priced handmade items! I don't make a lot on my stuff, especially considering the time invested, but sometimes I still feel like I charge too much. There are lots of vendors in the fiber arts that just sell waaay too cheap and it under minds the rest of us, unfortunately. I don't know how they do it either!

    1 year ago

  • cathydarling

    Catherine Darling Hostetter from CathyDarling says:

    This is AWESOME! Thank you, I have struggled with this for years and this formula makes a lot of sense. Thank you soooo much.

    1 year ago

  • perchshop

    Ali Thompson from PerchShop says:

    such a good formula! thanks for sharing & explaining. makes the process of selling a little easier to understand. thanks! ali

    1 year ago

  • Harem6

    Ildiko from DoubleFoxStudio says:

    <<<<<<<>>>>>>>>>>> __________________________________________________________

    1 year ago

  • SecondSpringSoaps

    Milly from SecondSpringSoaps says:

    Thanks for writing all of this down. I really enjoyed the last online lab on pricing and I'm looking forward to the next one. :oD

    1 year ago

  • Harem6

    Ildiko from DoubleFoxStudio says:

    <<<<<<<>>>>>>>>>>> _____________________________________________________

    1 year ago

  • MysticalSecrets

    MysticalSecrets from MysticalSecrets says:

    Thank you,that is really helpful.

    1 year ago

  • samsnatural

    Sam's Natural from SamsNatural says:

    It's a good formula for the crafter ~ pricing right is the most important part of ANY business model.

    1 year ago

  • LivingVintage

    LivingVintage from LivingVintage says:

    Great post! Although some things I don't think you can ever totally recoup the time and effort.

    1 year ago

  • wanderingmoon

    wanderingmoon from wanderingmoon says:

    This has been one of the biggest hurdles for me - I always, always underprice. Thank you so much for laying it out like this!

    1 year ago

  • nicoletsiailis

    Nicole Tsiailis from nicoletsiailis says:

    Excellent advice.Thank you soooo much

    1 year ago

  • OuterKnits

    OuterKnits from OuterKnits says:

    Wonderful info!

    1 year ago

  • TheRubyBelle

    Sandy from TheRubyBelle says:

    Excellent advice! I have struggled with pricing also. I want to be competitive, but also know the value of my work and properly express it. I'll be trying out this formula and adjusting prices accordingly this week.

    1 year ago

  • retroreclaim

    Moxie Moxon from MoxieRevival says:

    very helpful, creative people tend to undervalue their time and work. Being buisness savvy isn't our strongest quality. thank you for this articles like this one are just a few reasons why i love the etsy community.

    1 year ago

  • flauntdesignsjewelry

    Lin from FlauntDesignsJewelry says:

    Good advice, and I am SO pleased that the point about underpricing work undermines other sellers was brought up; so true!! :~)

    1 year ago

  • tadalyn2006

    Kelie from tadalyndesign says:

    YeS, YeS, YeS....thank you for this information! Love it!

    1 year ago

  • yomarismillan

    YMillan MILLAN from AgapeArts says:

    Very Helpful and informative!!! will defenitely keep this in mind for my shop!!! Thanks!

    1 year ago

  • upboundbooks

    Jeaneen from UpboundBooks says:

    Great article ~ extremely helpful!

    1 year ago

  • LittlePigeonCrafts

    Monica from LittlePigeonCrafts says:

    This is so clear and concise. I love these tips, I'm currently re-analyzing all of my business finances and this could not have come at a better time. I just started using Outright and it rocks!

    1 year ago

  • KatiesBeadsOfHope

    Katie Louise Leach from HopeForBinati says:

    Very helpful formula! This is something I'll keep handy. Thanks!

    1 year ago

  • happycat2

    Carol and Carrissa from happycat2 says:

    We wholeheartedly agree with several other posts on underpricing. When we sell our earrings to individuals who can actually see and handle our jewelry, we are always told how reasonable our prices are. Makes us wonder if maybe, we are underpricing! But we have only sold two items in our etsy shop so far so we still have to wonder if our prices are reasonable or etsy is such a large marketplace, maybe we have just not been found my potential customers.

    1 year ago

  • JeJeweled

    Jema Watts from BadgeShack says:

    Bookmarked! Thanks.

    1 year ago

  • KristinaandJenney

    Kristina from CityGirlsDecor says:

    This is an OK article, but still missing a lot of information. Hopefully the online lab will fill in the blanks. I would like to see what we should put in for "profit." Are there any benchmarks we could use? Maybe this could be covered a little more in detail in the lab? Thank you, Kristina

    1 year ago

  • daniellexo

    Danielle Maveal from daniellexo says:

    Hi Kristina! This post is a basic guide to pricing using the above formula. Definitely tune in tomorrow night to hear what Megan and Tara have to say (and bring questions - we will have a Q & A at the end)! Another more advanced pricing post is coming up next week, as well. Tune back in to the Seller Handbook next week!

    1 year ago

  • hardcorestitchcorps

    Meredith Cait from hardcorestitchcorps says:

    I think on Etsy it's really the opposite: people wonder why your work is so expensive, since I think the majority of sellers here underprice their work.

    1 year ago

  • KristinaandJenney

    Kristina from CityGirlsDecor says:

    Thanks Danielle! I will definitely attend the online lab and I'm looking forward to reading your next pricing post!

    1 year ago

  • littlefever

    Shannon Marie from LittleFever says:

    Very helpful to keep as a reference. Bookmarked! ;)

    1 year ago

  • thevicagirl

    VaLon Frandsen from thevicagirl says:

    A friend of mine once told me to list things high and if they sell great, if not, then I could always lower it. I never took the advice seriously until I was looking at my budget for the new year. I raised all the prices by nearly double on a lot. I have sold less, but made more profit, and that is success to me.

    1 year ago

  • PinkyRoo

    Del Carmen from PinkyRoo says:

    Hi i love the formula, BUT if I use it I come up with a price for something I selling for $45.00 now will turn to be $232 how to explain to customers the difference in price when is another Etsy stores are selling similar items sometimes for half of my price now, What to do when the market do not accept the formula prices? Del

    1 year ago

  • BellaBeads4U

    Marilyn from BellaBeads4U says:

    Very helpful reference. Thanks for spelling it all out. Since I am also selling at a B&M Gallery and they take 30%, I am more aware of good record keeping and the margin of profit I want to consistently make.

    1 year ago

  • mydaddysshirt

    Christopher Marchini from mydaddysshirt says:

    Super helpful info... I need to get my shop back in gear! Can't wait for tomorrow's workshop video to be posted!!!!!

    1 year ago

  • jdfootloose

    Jessica from jdfootloose says:

    Great Article, Super Helpful. Thank you!

    1 year ago

  • VictoryBags

    Victoria Gray from VictoryBags says:

    It's true, you can pay yourself more! I've been making bag for four years, and this pricing formula has just started making sense to me recently. I love what I do, and I want do it all the time, but other areas of my life were suffering because I was spending so much time sewing, and I still wasn't making the amount of money I wanted to. I started thinking about what it is that people like best about my work, and decided it was time to redesign my best selling bag with that in mind. I simplified the design so it takes less time to make, improved the quality of the work (more expensive materials that are less labor intensive to work with), and raised the price. I showed these bags at a craft show this past weekend, and they were a huge hit with my customers. I'm super excited about my future having time for both my creative and my personal lives.

    1 year ago

  • pohkoon

    Poh Koon from NeueGraphic says:

    Great to know this, especially came to how to value and set for wholesale price. Was a headache once I been involve in quoting customer for wholesale price.

    1 year ago

  • Annsliee

    Annsliee from Annsliee says:

    Sorry I had missed the live session but am soooo happy the video is available. Thanks much. This really helps.

    1 year ago

  • LittleWrenPottery

    Victoria Baker from LittleWrenPottery says:

    Great article, I think its tricky to get the balance between product and price!

    1 year ago

  • LauraBoyea

    Laura Boyea from LauraBoyea says:

    Very helpful- just still hard to imagine selling certain things beyond wholesale price without shocking people with retail price

    1 year ago

  • shuqi

    Emily Lim from shuqi says:

    great article. me also small store. yup. pricing sometimes might be a little bit tricky.

    1 year ago

  • NoodleDooDesigns

    Amy from NoodleDooDesigns says:

    Great Article - Awesome Equation! Simple & Helpful! Amy :-)

    1 year ago

  • cherlynl

    Cherlyn L (Stickerlicious) from StickerliciousCo says:

    great tips.. I calculated and compare to what others are selling.. mine would have been overpriced. ultimately.. buyers are still looking at good deals :)

    1 year ago

  • devonlynnbeads

    Devon Lynn Elam from DevonLynnBeads says:

    Outright is NOT free - only for a few months then they want $$

    1 year ago

  • stonehorsedesigns

    stonehorsedesigns from stonehorsedesigns says:

    Such great advice! Thanks so much!

    1 year ago

  • joevleather

    Joe V. from joevleather says:

    The way you can compete is by being more efficient at what you do. Find ways to cut down steps. Materials and Expenses are pretty consistent once a design is rolled out, but the time is takes you to make it can always be improved. Time is the most valuable asset we have but many don't account for it. Time is money.

    1 year ago

  • devonlynnbeads

    Devon Lynn Elam from DevonLynnBeads says:

    sorry - did not have this right - it is $9.95 a month for Outright plus. You can have the basic for free

    1 year ago

  • dottiegray

    Anne Harris from dottiegray says:

    Pricing is frustrating for me--there are practically no materials I can purchase at wholesale costs because it means storing a huge amount of items that would take me a long time to use. According to your formula, my prices should be at least double what they are-I definitely don't want to undercut anyone, but at the same time, want my wreaths to be affordable...so I am constantly rethinking them. I welcome any suggestions!

    1 year ago

  • crochetgal

    crochetgal from crochetgal says:

    Excellent article.

    1 year ago

  • ImaginAprons

    Kellie E. Edwards from ImaginAprons says:

    I can't get this formula to work for me. My products are very labor intensive, and most items like mine sell in the $30+ range, so that's how I price mine. I even get complaints at art and craft shows about how high my prices are. But using your formula, these items would wholesale for $60 and retail for $120. I've worked hard this past year on making wholesale contacts for my materials, and redesigning many items to get more bang for the bucks (and labor) I put into them. But it's still not enough to work with this formula.

    1 year ago

  • bananabunch

    Eva Clements from bananabunch says:

    I see this mathematical mistake all the time. Your equations should be this: Materials + Labor + Expenses + Profit = Wholesale Wholesale x 2 = Retail

    1 year ago

  • resetreality

    Vanessa from resetreality says:

    It's also difficult to charge the real retail price of certain items for the simple fact that a lot of people aren't willing to pay :/ especially in this lousy economy... as an artist, I just dream of having a few rich people who love my work and just buy from me all the time lol :p

    1 year ago

  • GregLlewellyn

    Greg Llewellyn from GregLlewellyn says:

    Thanks for the article.

    1 year ago

  • cronincreations

    Kathleen Cronin from cronincreations says:

    It's hard for me to know how to price my sweaters; if I can't sell them at craft shows how can I expect them to sell at a higher rate (to account for Etsy fees)?

    1 year ago

  • SNoU

    Lucía Nieves Cortés from SNoU says:

    Appropriate pricing is fundamental. Those who don´t price their work right are dumping prices, creating false expectations on customers, making it harder for others who need to live from their handmade work and plain and simple giving away their work and just slowly or swiftly driving towards failure. It´s important to find a way to rationalize production, refine offer and give work an added value. Cheap should not be a goal. Value your work and others will follow.

    1 year ago

  • RebeccaPorter

    Rebecca Porter from PrettyPicCreations says:

    Thank you for this! Pricing has been one of the more difficult things for me. I've had several people tell me that my prices are much too low but I was nervous to price them higher starting out. Thank you for sharing this formula!

    1 year ago

  • camliz84

    Lizet Cammans from simplycutieful says:

    Thanks for the formula and tips :)

    1 year ago

  • hennyseashell

    Henny Augustien from hennyseashell says:

    Thank you! Pricing always be a hard one for me to solve :)

    1 year ago

  • robynbolam

    Robyn Bolam from robynfb says:

    Question: in the example of all expenses added together, are these costs for a 1 month period only, eg is the bus pass for 1 month only? thanks

    1 year ago

  • rusticcraftdesign

    Sam Squailia from rusticcraftdesign says:

    It's so daunting to buckle down and figure out every monthly expense and THEN to determine what we want our profit to be!! ...but these suggestions are good...and certainly will benefit all etsy sellers!

    1 year ago

  • fernleave

    Fern from FernsCottage27 says:

    Thank you for the great tips.

    1 year ago

  • lauchita

    Mariela Wilhelm from UchiWraps says:

    It gets even harder when local stores start selling your items out of respect, the price should be somewhere close or preferably identical to their price. There is nothing more annoying than buying X brand for X amount (told to sell at 2X) and having the company you bought it for sell it for just a few $ more than your "wholesale" price (ie these companies simply use you as an easy advertising tool). I was told by one of my store owners that there was no way she was selling my poncho for the same price or slightly more than a "baby undershirt" on her shelf. It takes tremendous amounts of time/effort/research to create, you need to pay yourself and don't let "watch dog" store owners try to buy your items for pennies. They can buy inferior products and do that.

    1 year ago

  • KUTEKUSTOMKREATIONS

    Sonia N from KUTEKUSTOMKREATIONS says:

    A very helpful article. Helps understand the economics.

    1 year ago

  • browneyeddaisy

    browneyeddaisy from browneyeddaisy says:

    Great tips! Thanks for sharing.

    1 year ago

  • AureliuSignum

    AureliuSignum from AureliuSignum says:

    I truly appreciate having this information, but it also discourages me to feel that what i'm doing is pointless because if i really priced according to this model, people would look at it my prices and think theyre ridiculous, on the other hand i've never tried it so maybe i should...i hand paint cards which is very labor intensive, some designs take longer than others, but they truly are meant to be given as a gift and framed as works of art, and ive already streamlined the process as much as i can. I'm still trying to find my footing with constant sales, so maybe i should just raise my prices to high heaven and see what happens, who knows it might work...lol like one other seller said, selling less but at a higher price can be more profitable in the end, but if anyone cares to respond to this question to help me, should i then remove all my cards from the "card" catagory and place them under art...oh vey! The process never ends, but i guess thats a good thing :-)

    1 year ago

  • AureliuSignum

    AureliuSignum from AureliuSignum says:

    Sorry to be long winded, one more question, why is not labor and profit the same if only one person runs the shop? Just curious...

    1 year ago

  • BlueSquiggle

    Monique Flannagan from BlueSquiggle says:

    This is very helpful! Thank you! And the comments are helpful too! I am not alone! I am not the only one that finds it hard to pay themselves for their work!

    1 year ago

  • RouDesigns

    RouDesigns from RouDesigns says:

    Great tips! Thank you!

    1 year ago

  • PolymerPony

    Amy Singbusch from PolymerPony says:

    now if only the people would buy from me!

    1 year ago

  • oinest

    Telia from KatiesWildflowers says:

    I'm so glad that I read this article. I'm new to Etsy, just 2 months in to my flower clip shop. I plan on working through the formula to figure out what I should price my items. At this point in the game, I have just been focused on getting sales. I figured I would start my prices low, than after I got some good feedback I would work up to the price that would give me some profit. But then I wasn't making anything and was spending a lot of time for no profit. So I inched up my price to at least break even. After I plug the numbers I'll be able to see if it's right. Thanks for the ideas.

    1 year ago

  • hackenpillow

    Liz P. from PillowDesignStudio says:

    Very helpful advice. It's nice to dream about someone wanting to buy 100 of my headbands! These are tips I'll definitely keep in mind.

    1 year ago

  • thenotsoblankcanvas

    Heather Harrison from thenotsoblankcanvas says:

    These tips are great! Thanks.

    1 year ago

  • howhappy

    Julie Freeman from HappyGirlSews says:

    Thank you so much for this great article. Pricing is definitely a hard part in this Etsy journey! It seems like part of the problem with pricing sometimes is we don't know who our target market is. When I have shown my zipper bags to people who I consider my target market, they always think the pricing is fair. My time is valuable, and I cannot afford just to give it away. Remembering that helps me to price my bags fairly, for me, for my family, and for my customers.

    1 year ago

  • PathfinderGifts

    Caroline from PathfinderGifts says:

    Great advice and insights. Also good to see others discuss their struggles with in-category low prices. I definitely shop around for great raw material pricing and I am still a little befuddled over some low prices for seemingly similar items.

    1 year ago

  • myMountainStudio

    Nikki Weiss from myMountainStudio says:

    That's the same formula that's in a book I've had for years and years. Makes complete sense, but often hard to put into practice and still sell. I've struggled with pricing for years. I'm working on getting into a little bit higher market (hopefully). Sales for me have been quite slow in my transition, as I'm working on moving my online stores to Etsy to accommodate this change of finding a higher market that is willing to pay a fair price for handmade, and selling at proper prices here locally is not very feasible. Thanks for sharing the info, and encouraging us not to underprice our handmade wares. Somehow, we all have to find our balance of finding a price that sells AND makes us a decent amount of $ for our time and effort. :) I need to do a better job of keeping track of my time, so I can try to apply the formula again and see what I come up with. :)

    1 year ago

  • fromjeanne

    Jeanne from FromJeanne says:

    This is a great advice!

    1 year ago

  • dawnMaeR

    dawna rubihid from dawnaparis says:

    thanks for the infos!

    1 year ago

  • Rosibouquet

    Rosi from Rosibouquet says:

    Thank you so much! My bouquets are my artistic inspirations & I make each one with quality & high end items just as I wanted for my own wedding! I use vintage signed brooches which are not inexpensive & I dont like the overwhelming look of Brooch Bouquets. I have made them for some time now but, only recently I need the income. I have been hesitant to post... Thank You so much for the boost!

    1 year ago

  • amabito

    Roberta from amabito says:

    Great tips! Thanks for sharing!

    1 year ago

  • Artizania

    Megan M from Artizania says:

    Thank you, pricicing is always complicated, and something that I'm still trying to perfect. I've been working to a similar formula (but sometimes in a "weak moment" I've doubted myself) Good, to know that I'm on the right lines!

    1 year ago

  • neusbatllori

    neusbatllori from neusbatllori says:

    great advice! thank you!

    1 year ago

  • Lemoura

    Lemoura from Lemoura says:

    I fully agree about the talent that should not be underestimated. Really, even some most simple items being sold here are sometimes just stunning because they've been made with great TALENT. I believe this is the first and foremost thing to be takent into account when figuring out the price ;)

    1 year ago

  • TambourineJewelry

    Mireille from TambourineJewelry says:

    Thanks for the great tips!

    1 year ago

  • NeckSpice

    Tania Gration from NeckSpice says:

    Love the formula - fabulous advice.

    1 year ago

  • anakim

    anakim from anakim says:

    Good advice - thanks!

    1 year ago

  • itzih

    itzi hdo from sisimoco says:

    Thank you very much. It is difficult to price and this is a great help fomula.

    1 year ago

  • 9667hbvicki

    VICTORIA from AuldAndGreat says:

    I don't make the items I sell. I sell vintage things I've owned or purchased. How do I price those correctly? I've listed some items at what I believe and reasonable but have gotten no sales. I now realize the first items I sold were underpriced which accounted for how quickly they sold. I wish there was some pricing advice on vintage goods!

    1 year ago

  • 9667hbvicki

    VICTORIA from AuldAndGreat says:

    Oh, and one more thing: the sheer amount of time it takes to photograph, measure, describe and post items for sale is time consuming. Do I factor that in as well?

    1 year ago

  • Mireog

    Shona Macdonald from Mireog says:

    Thanks very much, working on this now so it's aptly timed, and very useful! :)

    1 year ago

  • ruthgreen1

    Ruth Green from BillandNell says:

    I think a big problem is underpricing as this makes anyone that prices their shop fairly, feel they are themselves overpricing and then they need to reduce their prices. You end up going round in circles.

    1 year ago

  • elltea1

    Laura from loveandroll says:

    i've just started to draft list some stuff on my shop for the first time and drew a blank when pricing them so this article couldn't have come at a better time, thank you!

    1 year ago

  • plumpoyster

    Ben Constantine from plumpoyster says:

    I've always had trouble with pricing, sometimes pricing a bit too low even though i beg other artists not to sell themselves short... thank you very much for these insights.

    1 year ago

  • sgarofola

    Susan Garofola from sgarofola says:

    I sell handmade wire wrapped sea shell and sea glass necklaces and earrings. What tags would you recommend.

    1 year ago

  • DaniiMH

    Gatinela from gatinela says:

    Pricing is always such a tricky subject, since it can vary so much when it comes to art. I think this will be a good place to start though and adjust or leave the prices in my shop accordingly. Thank you for the tips! :)

    1 year ago

  • WhiteCrossDesigns

    Jordan White from WhiteCrossDesigns says:

    I also agree that talent and time should not be underestimated, but in today's world it's also important to do a reality check. Even with careful shopping and cost controls, it's pretty tough to compete with the commercial "big guys"; at least if you're not selling jewelry. My products are labor intensive and high quality. Even using lots of comparison shopping and tight cost controls, I couldn't possibly price with the "jewelry formula" and expect to ever sell something. Common sense is essential in this decision -- I'd much rather sell 6 items at a little less profit, than none at the "right" price. Bottom line --- today's consumer is VERY cost conscious, and doesn't always or necessarily recognize the time, talent, and effort taken to construct a high quality product for them. Now if I were able to buy a ten thousand yards at a time . . . . . . . .

    1 year ago

  • TheBeckoningCat

    Anita Campbell from TheBeckoningCat says:

    What also needs to be addressed is whether you are going to be a hobbyist who enjoys creating and has been told by friends and family that you should be selling some of your stuff OR whether you want to support yourself by doing this. I fall into the hobbyist category and I am not getting any sales at all on Etsy, but a decent amount of views and hearts. The only sales I make is to my co-workers at my day job and that market is limited before oversaturation occurs. I have taken into account the cost of my materials, my time (labor) and a little bit extra that could be considered profit. That comes out to a wholesale price that I think is fair. Sell for retail?!?! Really?!? OK, I will do that for my highest priced piece of jewelry here on Etsy and see what happens - I certainly have nothing to lose. I do agree with a great many of the previous posts regarding underpricing - I can't figure out how someone will create a beaded Kumihimo necklace using what appears to be quality materials and sells it for less than the cost of materials alone. Makes me look (at my wholesale price) like a greedy charlatan. Of course the formula has its uses in educating the seller/artist (if no one else) as to the worth of their effort. Sorry for the rant. Really frustrated.

    1 year ago

  • lsteinhardt

    Louisa Steinhardt from HurricaneRoadDesigns says:

    I missed the lab. Is the video available?

    1 year ago

  • diamondsandcoal1

    Erin Joy from diamondsandcoal1 says:

    Thanks for this article. I have been using this formula for a while, after hearing Megan speak about it previously. However it is lovely to see it broken down. I wish more people would price correctly, use this formula, and truly value the time and effort they put into a piece. Handmade items are something special, and one of a kind, and that should be reflected in your pricing I think. Plus, pricing correctly allows you to do things such as sell at wholesale, or offer discounts at certain times of the year and still make a profit. Thanks again!

    1 year ago

  • hobbyco

    hobbyco from hobbyco says:

    It is all relevant to product & competition. What slays me, I might make an item almost identical to another crafter, mine is 1/2 of their price, but theirs sells & mine stagnates. I think some buyers think they need to pay the biggest price to acquire quality. Not always so. Makes me think of a few short years ago when scrapbook pages were selling like hotcakes on Ebay. A couple of sellers managed mega sales (over $500 a page) while others couldn't give away really cute stuff @ $25. a page. In theory, yes you should be adding all of these things into your price. In reality, how many do?

    1 year ago

  • marykerran

    Mary Kerran from marykerran says:

    I try to check out other companies off of Etsy to see what they are selling for. I am usually right on target, most of the time, because handmade is a different category than mass produced. Nearly everyone recognizes the out of country mass produced items and their cost. We just cannot price that way. I price my items just as if I was working an Art show. That travel, even to the post office, eats up a lot of gasoline. What would you have an employer pay you to do the same product every day? You have to consider how much time you are really spending on a product. Time it sometime, it might surprise you.

    1 year ago

  • seasonedhomemakers

    Karina Struven from KarinaStruven says:

    Great information. I agree with Mary's comment above too.

    1 year ago

  • abigailleigh

    Abby Bohn from abigailleigh says:

    Thanks, this is great info.....I really need to relook at my prices.

    1 year ago

  • stitchesinblum

    stitchesinblum says:

    I make bags and also beaded/crazy quilted satin cosmetic sized bags for brides and bridesmaids. My daughter is a dancer so her dancer friends order my large bags for around $150. My beaded bags I have sold for $100-$125. I would never get that in a shop because the price on it would have to be so high for them to make a profit much less me. I also have a formula I used when I made handmade mohair bears. They sold for between $350-$550. depending on the size and the cost of the mohair used. It was by word of mouth and internet, via the bear supply shops but it's a small circle of people who collect them (and this was 10 plus years ago). I did a couple of bear shows but if you aren't well known, you might as well forget it. It's like being well known makes a better bear or bag?? I was asked to put them in a shop but they wanted to ask so much they'd never sell. I could do better selling my few bears a year myself. I haven't put anything on Etsy because I find the market is just so saturated with bags. You really have to have something extraordinary to do well. I find the gals who sell fabrics get more sales than we with finished products. If you put your price too low people say "what's wrong with it?" and if you price too high its "I can't afford that/I could make that for cheaper/I could buy a bag similar at Wal Mart". It's sad when craftspeople are trying to make a living or pocket money and people don't realize that if they buy from us, they get a mostly one of a kind item made by a lady who has a sewing room in her home with a dog at her feet. To me that's a lot better than a Wal Mart bag anyday.

    1 year ago

  • Owl1976

    Jo Elphick from ThePaperOwlUK says:

    This is really useful thank you - think I need to look again at my pricing!!

    1 year ago

  • cyasarcan

    Canan from Zembil says:

    will think about it in the future

    1 year ago

  • DeathByDoodads

    Allison Manson from DeathByDoodads says:

    I took your advice. Upped the prices of my items ever so slowly. Did the first price change before I went to bed, woke up to a purchase on one of the items I changed. Wow, you were so right. The price doesn't matter if the customer loves the product :-) thank you!

    1 year ago

  • VasiliosAlexandros

    Vasilios Alexandros from VasiliosAlexandros says:

    Awesome video. Don't be afraid to price your items people. All throughout history, artists and artisans have been very sought after for their talents but NEVER compensated what they are worth...Michaelangelo, Van Gogh and Kontoglou to name just 3 out of the millions who did not fare well in the pocketbook while alive, yet, whose art transcends the priceless.

    1 year ago

  • MilliesPlace

    Donna Reynolds from MilliesPlace says:

    I sell mostly bakery items such as cookies. fudge, whoopie pies, an assortment of cupcakes and much more. I don't ever see any help on how to price them or workshops. It always seems to be help on selling jewelry or knitted or sewn items. I did see a formula on the cooking channel on how to price restaurant food. It was the cost of the meal X's 3. That is what I try to do.

    1 year ago

  • outright

    GoDaddy Online Bookkeeping says:

    Many of our Etsy sellers who sign up for Outright are really surprised to see their expenses. It's great that more sellers are starting to look at that factor as a part of their pricing. We also see a lot of sellers who are happily surprised when they see that they really are making some good money off of their sales. It's so cool that they can do something they love AND make money. - Laura from Outright

    1 year ago

  • trapeze11

    Juno from JunoClaireDesigns says:

    What about knitted items? They take so long to make. If I wanted to make 7 dollars and hour, my Barbie clothes would have to be $20. So what do I do?

    1 year ago

  • noongning

    Ning Pratoomsup from NoongNing says:

    Thank you for helpful I'll used it **

    1 year ago

  • builtonbranches

    Erin Gardner from builtonbranches says:

    Wow, this is a great article and video! Thank you so much for sharing these helpful tips :)

    1 year ago

  • onceuponafirefly

    Ann Murphy from onceuponafirefly says:

    Excellent information. The aspect of pricing at a point that's fair and supportive of the selling community is one I hadn't really thought of. Yet, that might well be near the top of the list in terms of importance. A cost that is often overlooked is professional tax preparation. That can be pricey and should be taken into consideration, too.

    1 year ago

  • KardKrafts

    Dreana Bulmer-Thompson from KardKraftz says:

    Excellent information. Selling card/papercraft items such as cards, I really cannot justify charging too much. None the less, the online lab was really useful, and it's good to see the formula here. I did try to take notes, but it was somewhere in the region of 1am here in the UK. Brain was a bit addled by then! Excellent work and really appreciated.

    1 year ago

  • JeWellsy

    Melanie Wells from JeWellsy says:

    Such a helpful article! Fingers crossed things will work out for us all! x

    1 year ago

  • JQ4U

    J Q says:

    Love this..but quick question.....the whole "profits" segment...I'm not sure I understand completely.....can someone break it down a little more for me? Let's say I do want to be able to quit my day job....how do I factor that in? I decide how much I should be making a month then go from there? Help! :)

    1 year ago

  • SigalFJewelry

    Sigal from SigalFJewelry says:

    Pricing is always a struggle for me.... I wish there was one "magic" formula....

    1 year ago

  • endlesslycrafty

    Michelle Brandt says:

    I've always used materials x 3 formula...although I've always had to drop to materials x 2 for things to sell. I'm trying again to build my own shop, with new pricing etc...thanks for the article and great video!

    1 year ago

  • sidefxny

    Patty Villanova from SideEffectsNY says:

    In addition to my wonderful Etsy shops that I adore, I also have a brick and mortar store in the outer suburbs of NYC. I have been selling my own handpainted silks as well as jewelry and work from other artisans. That being said, I mainly sell mass produced items including accessories and giftware. I have a very eclectic mix in my B&M store while I use Etsy for my extensive collection of vintage jewelry and my more expensive silk scarves. It's working out very well for me, in fact, if the economy gets much worse, I may eventually close the B&M shop and be exclusively online. As far as pricing, I hate to burst anyone's bubble but the truth is that you can only get what someone is willing to pay. You can do all the figuring out you want for your time and materials, etc. but when it comes to the handmade items, you may not always be able to get your price. In which case you have to make some decisions. For example, I found that I've accumulated quite an inventory of silk scarves, not all of which have to be priced that high for me to make a small profit. I know I'm selling them cheaper than I'd like, but at least I'm not losing money, which is a very big consideration for me. Also, some of the scarves may be a few years old- how much longer do I want to hold on to them? I personally am glad to sell them and use the money to buy more inventory to create new products. As far as the vintage jewelry, I find that to be really tricky when it comes to pricing. There's a lot of it out there and for now I'm limiting myself to only a few different categories. Sometimes I see pieces out there that are for sale for way higher than what I'm selling them for. Other times I see items that are priced much lower than mine. All I can do is to try to price the pieces so that I can make a reasonable profit and continue to do research so I don't mistakenly sell something too cheap. Thanks for all the great tips from Etsy. I love selling my stuff here and the people are all so wonderful!

    1 year ago

  • bohemiantribe

    JACQUELINE STENZEL from BohemianTribe says:

    This info was truly helpful, and I must honor the knowledge you guys or gals:) have shared with us newer artisan entrepreneurs like myself. I have been on Etsy for months and haven't sold a thing yet!...-(very much in part due to my lack of willingness to be online). I have often wanted to undersea my handmade creations just to keep up with the competition out there! Your words of thoughtful wisdom really make sense!! Thank you for sharing! I've got notebook in hand to jot down calculations and more coat-effective concepts!! Thanks :D

    1 year ago

  • dmilstein

    Diane Milstein from dmilstein says:

    I had opened an Etsy shop a few years ago, but then did not proceed because of pricing concerns...I crochet everything....hats, rugs, afghans, dolls, flowers, food, etc, etc...but, if i were to calculate in my labor with the materials, shipping and supplies, in today's economy, I don't think anyone would purchase:( For example, if an afghan cost me $100 in yarn and if it takes me 7 days to complete, are there people who will pay me for that? I had been told to multiply the cost of materials by 3 to get the selling price....so $300 for the afghan....????

    1 year ago

  • WaxBeachArtist

    WaxBeachArtist from BeachAngelCharms says:

    Rhonda had asked a question about the overseas money in relation to US dollars. As a US customer that often buys at overseas rates, as I see that our dollars are worth less every day than the overseas money I just get mad at our government not the seller. Don't worry about it.

    1 year ago

  • theheritagekitchen

    Edythe Preet from theheritagekitchen says:

    The greatest frustration about etsy is that while one can search to see what comparable items are selling for, one cannot search to see what comparable items have sold for. What someone hopes to get for an item is far different from the actual prices that items do sell for. Etsy claims that is a 'privacy' issue, which makes no sense since posted sale prices are available. This frustration leads me (and many others I am sure) to search 'completed' sales on ebay and other sites. The conundrum here is that a seller would very possibly chose to list an item outside etsy, thereby weakening etsy's worth as a selling tool. To mitigate this, etsy need only make it possible for a seller to see the final sale prices in a 'completed' items search.

    1 year ago

  • LuSyndaR

    LuSyndaR says:

    Thank you so much!! I appreciate the workbook, and the video was really helpfull, esp. adding the Q&A's. Well done!! A lot of food for thought and a place for folks to start! I agree very much about not undervaluing and intentionally or possibly inadvertantly undermining other artists in your 'genre'...it happens everywhere in the art and performance fields, sigh. It really pays to turn on the 'business' side of your brain, even if most of what you do is a 'labor of love'....as so many of us started out....I think thats the biggest hurdle for many artists-the business side of it, so again, thanks for your input!!

    1 year ago

  • debbiegrove1

    Debbie Grove from debbiegrove1 says:

    Thanks for the hints. I just signed up yesterday and never sold a thing in my life. I am not trying to make a living at this but thought it would be fun. I will keep track of my costs to see if I am doing ok. I did some of the things you talked about but it was good to see what you had to say so incase I missed anything and don't want to forget anything. You guys were so cute , relaxed and fun to listen to. Thanks for your help.

    1 year ago

  • NataliaBurleson

    Natalia Burleson from KnitNFancy says:

    What about when you have a lot of hours invested in one item. Like hand knitting for instance. It might take me one hour to make a coaster, but you would typically sell them in sets, like 4, so if I paid myself $10 an hour x2 = $20 each x 4 coasters $80 for a set of four coasters? That doesn't even include any other parts of the formula. :( My shop is up, but I haven't listed anything yet because the pricing and the amount of time is really hard to figure out right now..... What do people typically charge for an hourly rate and then how do you figure in profit?

    1 year ago

  • DestinysTreasures

    Jennifer Wheatley from DestinysTreasures says:

    Thank you for the helpful tips. I have had my shop for 2 years and still have a hard time deciding what to price my work. I will use this formula to help me out. Thank you:)

    1 year ago

  • RenataUniqueGifts

    Renata Lader from RenataUniqueGifts says:

    Thank you for those reminders!

    1 year ago

  • cmmoca

    Claire from cmmoca says:

    Very helpful, there are points i was totally missing.. :o Thanks a Million! :)

    1 year ago

  • woodroid

    Pavel Velikodvorsky from woodroid says:

    Thank you guys so much for this article, just today i was thinking if my prices are not very good :)

    1 year ago

  • jewelrybysedra

    Sedra from JewelrybySedra says:

    Very helpful article!

    1 year ago

  • EbbAndFlow09

    Devon Specht from EbbAndFlow09 says:

    Incredible resource!!! Thanks so much for sharing!!!

    1 year ago

  • RenataandJonathan

    Renata and Jonathan from RenataandJonathan says:

    Excellent information ! thank you !

    1 year ago

  • PureSin

    PureSin from PureSin says:

    Awesome! I shall adjust to this:)

    1 year ago

  • RoughMagicCreations

    Mollie Ann Meserve from RoughMagicCreations says:

    Learned so much from the online lab! Thanks for this positive reinforcement! :)

    1 year ago

  • pierrmorgan

    Pierr Morgan from pierrmorgan says:

    Really great service & advice, Etsy folks. Thanks so much!

    1 year ago

  • EdgewoodGardenStudio

    Ilga Jansons from EdgewoodGardenStudio says:

    I agree that it is important to take into account all of your "cost of goods" (COGS) as well as all the "hidden" costs AND to be sure that you are realistic about time, wages, and profits, but these do need to be in line with the consideration of "what the market will bear." Prices do need to be within a range of what buyers are willing to pay---providing that you as a seller are not going broke. In addition, there are also some substantial variables in skill which will significantly influence pricing. For example, I have been spinning for over four decades. Likely, as a production spinner, it takes me less time than someone who is just starting out. There is a very wide spectrum of experience on Etsy. Additionally, if some sellers are buying their materials at wholesale while others can't afford to (or don't use as much of a commodity) and are buying their materials at retail, then this can add additional disparaty to pricing as well.

    1 year ago

  • sukisukisuki

    Virginia Weslowski from sukisukisuki says:

    I hate to say it, but it seems that this pricing strategy is impractical in today's economy. People can and do shop on price. Some people value handmade, original products and are willing to pay more than they would for a mass-produced product, but many will only pay so much more. It might be nice to say don't under-value your time, don't shortchange your self but for many, raising prices probably means less sales, less revenues and less profits. Yes, streamline processes, buy smarter, etc to lower your costs. That makes sense. But to take cost of material, labor, expenses, profit and then DOUBLE it? Most of us would go right out of business. In the business world there are many pricing models used successfully . Different models are necessary for different markets and different products. But doubling costs (let alone adding in desired profits and then doubling) sets the stage for dissappointment. It's not a sellers market. If the price is too high, people simply walk away.

    1 year ago

  • PenStation

    Ray Hartford- CT from MyPenPlace says:

    This strategy is a little too basic and does not take into account for market demand and competition. You have good points regarding capturing all of your costs but just stating to add labor and profit and double will not work especially for an online market where the customer can not feel or experience the item first hand. If I was selling retail in a boutique the qualities of my craftsmanship would stand out. People do competitive shopping on line very easily. So market research and competiive pricing has to be key.

    1 year ago

  • tomsgrossmami

    Tom's Grossmami from tomsgrossmami says:

    Thank you. Thought, I agree with Ray Hardford.

    1 year ago

  • ShellysBags

    Shelly Johnsen from ShellysBags says:

    What I am finding with pricing, on my items, is that people in Eastern Europe selling crochet items are selling a piece that I need to price at $32 for $6! How do I compete with that? And the vintage folks find a doily someone spent dozens of hours making, and they sell it for $5. I would really appreciate if anyone has insights on that. Maybe the answer is that I should not be trying to sell the beautiful things that I make, the gift that I have to create them?

    1 year ago

  • gritsglitz

    Alice from gritsglitz says:

    Thanks for the video. I thought my pricing OK because I sell quite well here in local bazaars. But when come to Etsy, I've little sales. I know there'll be a lot of reasons but thanks for letting me know one by one :) Calculating cost is tricky. There are so many small cost e.g. cost & time incurred when procuring materials, the exchange rate when ordering overseas material, inflation, shipping charge varies when you order more/ less material each time......and a lot more

    1 year ago

  • SidonieYang

    Sidonie from SIDONIEYANG says:

    Great article and great tips! I think a lot of people under-price their work, because they're afraid that nobody will want what they have to offer if it's too "expensive". But, if you think about it, the price of your items is just as much a part of the design as is something like packaging or photography!

    1 year ago

  • Floralchic

    Amy Frances from Floralchic says:

    thanks so helpful i still struggle with my prices but am defiantly working on it ! :)

    1 year ago

  • CreativeLMent

    CreativeLMent says:

    I think this model might work well for high end items, items such as art, fashion or very unqiue items - provided the economy is good and the competition is low. In handmade these days, the access to knowledge, tools and resources is readily available to everyone - and this includes access to creating shops like Etsy. The handmade market is a highly competitive one and you have to be realistic and price accordingly. Before I opened my shop, I spent an incredible amount of time and effort recording information to calculate an accurate and fair price (I left out all the time I took taking photos and writing product descriptions - for my price point, that would have increased the price too much, but there I was, spending all that time!). I then loaded the products into my shop and vetted those posts through friends and family, asking them if they thought the prices were reasonable. Their feedback indicated that prices were too high. I agreed, and further confirmed this by searching for similar items online. Everyone was undercharging for their work - it was quite clear. You can't always compete in the virtual handmade market in this manner - clients are not touching your work, they don't always consider the quality of items the way we would, they don't really care about the endless hours you pour over designs. They want to look around and get the best price - and by creating an online shop, we make it extremely easy for customers to do just that. So, in the end, after all my work tracking every single cost on every product, I scrapped my pricing strategy and started charging market value, when reasonable. I decided to focus less on profit and more on just brining in funds to keep my hobby going. And for most handmade items being sold online, this to me, seems like the only option. Handmade goods are just one of those items, that by their very virture of being handmade, don't make a lot of profit, and I suspect most shops stay open more out of passion for the craft than the money. Businesses function to make profit, and that is very hard to achieve in the handmade market these days. You have to decide for yourself, in the end, if all the effort of keeping your hobby-business going is worth it - and you have to be honest with yourself about what it is you are doing. I suspect for most, what they have is a hobby masquerading as business. That's just my two cents.

    1 year ago

  • crankyhayes

    mary hayes from crankyhayes says:

    Great article - hope more etsy sellers will take it to heart and raise their prices, otherwise I am afraid that I have to agree with CreativeLment. If I follow the pricing formula for my pendant necklaces, I will have to raise my prices by 5 to 10 per piece, and my prices are already on the high end of my category. I think many sellers are making just enough to cover their expenses and/or they live in areas where the cost of living is really low. Materials and postage is super expensive in Canada, which makes it difficult to compete with sellers who list items at these insanely low prices!

    1 year ago

  • tommibrem

    Tommi Brem says:

    And, as a buyer, may I suggest to not calculate the cost for packing material too low. It's fine to get something at a good price, but packing well is absolutely mandatory. For example: I have received too small works on paper lately and both of them were well packed ... just not well enough. In both instances, the whole cardboard envelope had been bent during shipping, slightly creasing the work. It's a mistake even experienced shops make. Once a fairly expensive art edition print I ordered from a well established gallery was damaged this way. And there a few simple tricks that don't cost too much to protect paperwork just that tiny bit better ...

    1 year ago

  • noajordan

    Noa Jordan from noajordan says:

    I like the idea of using a freelance hourly wage calculator, but this won't work for needle felters. How do we determine what is the proper hourly rate for our work. I am currently paying myself $5 an hour and only charging the wholesale price even though I feel like I am worth more than just $5 hour. My items can take anywhere from 4 to 10 hours to finish. I have not had a sale before and I don't feel like someone would buy my item for $80 so I price them around $30 to $45. Most other needle felters either under charge their work even lower than mine or charge the full price. I think that under pricing affects other shops especially ones that put more detail in their work like mine. I do plan on adding items that people would be interested in other than mushrooms. I also plan on making wedding cake toppers which would bring in people would could afford my items for their wedding. Any suggestions would help. Send me a private message as well if you have any good advise. Thanks, ~noa

    1 year ago

  • Pastecchi

    Pastecchi from TheAmazonBazaar says:

    Great article, so many artists struggle with this concept...myself included!! We tend to undervalue our work or do not take into consideration all the aspects that go into making a great item for sale. It is a business formula not a decision based on emotion. Artists who under value thier work attribute to the larger problem with the arts industry, artists getting low balled and expected to work for nil. But that is another issue entirely!!

    1 year ago

  • MD11

    MD11 from MD11 says:

    Really helpful article.... everybody should follow your advise ... I am based in new york city.. making everything I sell, myself and was wondering if Etsy was for people like me... I just saw a listing of a set of 3 hand crocheted 100 % cotton washcloths offered for $ 11.25..... Now tell me what kind of profit this person is making ? i can crochet and knit so I know the time it takes and the price of yarn.... This makes it impossible for people who treat what they do as a business to be able to sell their work.. Most of the sellers on etsy are there as a hobby...

    1 year ago

  • MD11

    MD11 from MD11 says:

    I'd like to add that Etsy present themselves as a place to sell HANDMADE products... They should not accept "assembled" items.... tons of products on Etsy are just commercial elements (bought in bulk) attached to a chain or an earring wire... I don't call that handmade and I am sure that a lot of people agree with me....

    1 year ago

  • beverlymorefield

    Beverly Morefield from beverlymorefield says:

    The advice is very detailed. Thank-you. I am one to follow step-by-step instructions and lots of advice in the article fits the bill!

    1 year ago

  • findakeeper

    Carol Poirier Dominique from findakeeper says:

    I sell vintage items depending on my cost I consider what it's approximately valued at by using Worthpoint a subscription,eBay seller account sub, and Sellersourcebook Before selling anything I've already invested $25-$30. Resource books,cost.references at Library cost time. I agree with Edythe Preet. Asking price and actual sale price are fundamentally different .I'd like to know what items are actually being sold for.

    1 year ago

  • Objectsandoddities

    Nike Bottalico from Objectsandoddities says:

    excellent information, I only wish the volume was higher. I had trouble hearing it. But enjoyed and will use the info! thanks

    1 year ago

  • Petitbijouartshop

    Mariette from Petitbijouartshop says:

    Great information! Thank you;-)

    1 year ago

  • pware1005

    Pauline from PoppyDrops says:

    Thanks. I'm a little surprised at how high I probably should be setting my prices, but it's food for thought and will make me look at how I do things.

    1 year ago

  • muahrilou

    muahrilou says:

    this is what I am looking for! Thank you so much! I'm learning!

    1 year ago

  • vegasblingrocks

    Judy Murphy from vegasblingrocks says:

    I agree with Carol P Dominique in wanting know what items are actually being sold for. Revealing my final selling price would not bother me at all as it would benefit everybody, besides I assumed sellers get their actual price. Does this mean there is a lot of haggling going on? That surprises me!

    1 year ago

  • vegasblingrocks

    Judy Murphy from vegasblingrocks says:

    I also concur with Edythe Preet. I wonder how many Etsians would not mind showing their final sales price ........ has anybody asked? Why not offer Sellers that option.

    1 year ago

  • Nuwong

    Nuwong from Nuwong says:

    So glad I found this article. Thanks so much for sharing.

    1 year ago

  • chr15ta

    Christa Smith from EnveloveInvitations says:

    Thank you so much for this article! It is giving me the confidence to bump up my prices where they belong. :)

    1 year ago

  • glaudius

    glaudius from GestOfCreation says:

    Very interesting. However I think it is more a guide than a rule, because we also know that price is a function of offer and demand in a free economy. So the more there are people making the same stuff, the harder it will be to apply this equation. The more there are people looking for the same stuff, the higher the "profit" number you can put in the equation. Also we are not in a closed market. somewhere we are competing against the Walmarts, the Targets, the Kohls you name it. Their prices also indirectly affect us. In other words, our work should have something special unique found nowhere and that people want!...price will follow.

    1 year ago

  • joonijewelry

    Jooni Jewelry from JooniJewelry says:

    Loved the video! I am going to add up my some numbers now... Thank you so much :) :)

    1 year ago

  • lovesyoustationeryco

    Jenn Fisher from LovesYouStationeryCo says:

    Thank you so much for this, I've figured for awhile now that my prices were two low but had no idea how to go about fixing them. I'm a little nervous about seeing what came out of the formula but I'm going to look at some comps and see how I compare.

    1 year ago

  • carraghk

    Carragh from BadgersHollow says:

    Challenge accepted! Thanks for giving me the kick I needed >.

    1 year ago

  • creationsbychar

    Char from creationsbychar says:

    Some types of handmade items don't lend themselves to wholesale. OOAK items that are very labor-intensive can't be made in enough bulk for wholesale, and doubling the cost to form retail would make these types of items priced too high for the market, in general. Things like art dolls and quilts come to mind. So depending on your business model and the types of items you sell the formula might need to be modified. And some items just have a "ceiling" for price no matter how much time they take to make. People are only willing to pay so much for a greeting card for instance, no matter how intricate and well-made it is.

    1 year ago

  • LoveNStuff14

    Marie from LoveNStuff14 says:

    I think Danielle was wrong when she said to charge full time if you craft while watching TV. Once with no TV I learned I could make an item in half the time it took me when I made it while watching TV. You can't help but stop and watch when a show gets interesting, and that's not crafting time. If you're going to use this formula, it's got to be actual time used.

    1 year ago

  • NeedyBead

    Jennifer Keller from NeedyBead says:

    This was very, very helpful.. I especially liked: "Selling your work at a wholesale rate undervalues those who price their work at the proper retail price." and I think it's something that people need to pay attention to. Recently, I advertised my goods on another site, and got the comment "Pricey, IMO". So I started thinking about this exact same thing, and doing some research. Given the quality of materials I use, and the fact that each item is made to order, custom, and that it's timely, I decided that my items are priced fairly. And in doing my research, I found many people (or wholesalers POSING as people, possibly) that are selling similar items at a lower price, giving the person that made the comment to me the unfair impression that my goods are over priced. I can see clearly how undervaluing your own work and selling at a very low rate affects not only yourself and your profits, but other artists who are correctly pricing their products. Thank you for such a helpful article :)

    1 year ago

  • meg9385

    Meghann Cromwell from MomentsMadeMagical says:

    This is great advice!!! I will be sure to adjust my prices where necessary. Its really helpful to keep track of everything. I need to get myself a little notebook. Thanks!

    1 year ago

  • MariaBjork

    MariaBjork from MariaBjork says:

    Very good advice, thank you so much! :) I wish I could follow them, but as it takes such a long time to knit just a simple (one color, no pattern) hat, almost all my hats would have to cost well over 120$ to ever really pay off. The material I use is very good quality. I just feel that if I put higher price on the hats nobody will buy them. I prefer selling some hats as I enjoy making them than not selling any hats at all. Good luck to all of you, it's not easy to find the right price.

    1 year ago

  • MarinaTheArtist

    Marina from MarinaTheArtist says:

    I love this advice, but only if people would buy that would be nice

    1 year ago

  • CreativeCharmer

    Tereza McInnes from CreativeCharmer says:

    Good advice but at a certain point things become too expensive for people to want to buy :P

    1 year ago

  • lulisbowtique

    LIULIA from Lulisbowtique says:

    Great info Thank you!!!!

    1 year ago

  • vcantabrana

    Veronica Guarneros from earluv says:

    Great tips...I have so much more to do.

    1 year ago

  • MamaMakeMineToo

    Sujini oh from MamaMakeMineToo says:

    Thanks for the tips. I'll keep in mind.

    1 year ago

  • tokyoties

    tokyoties from tokyoties says:

    Thank you this has been most helpful :)

    1 year ago

  • paladinsf

    paladinsf says:

    interesting math. i put 12 cent a hour for my time and the selling price came out more than a new car. hummm.

    1 year ago

  • benoitdesigns

    Marty from benoitdesigns says:

    I always need to reevaluate my pricing and this is a great article to go over for reminders! Thanks very much :)

    1 year ago

  • Sondeka

    Lulu from SondeKaGifts says:

    Thank you so much for all this wonderful information. Definetly will be put to good use

    1 year ago

  • dibusmangasi

    dibusmangasi from dibusmangasi says:

    thank you very much for your support and your great tips!

    1 year ago

  • Braveheart32

    Braveheart32 from Franceincolour says:

    Great video and really helpful pricing formula. I am about to open my shop on Etsy and this advice on pricing will be extremely useful. Thankyou.

    1 year ago

  • fairyclairy6

    Claire White from MarieCoutureOnline says:

    This is so true about re-evaluating your costs. My first range of evening wear cost me 2 grand in materials, god knows how many hours to develop, and then all the running costs on top. What happened? Well in order to pay myself a 'fair wage' the garment costs are on the high side. Some of the designs, the materials form half of the retail price! So, I've got back to the drawing board for the new season and worked really hard on sourcing better value materials so I can make garments at a better retail price while not shorting myself the wage I deserve.

    1 year ago

  • 0arthouse0

    0arthouse0 from 0arthouse0 says:

    Thank you for this video. I learned a lot about pricing my own artwork. The pricing of supplies or vintage items is a bit tricky though. The one part that still gets me is the shipping costs. Trying to figure out the best cost for each country (other than my own) and their taxes, is unbearably confusing...every time. I usually just get estimated quotes from the post office and letting the customer choose their preference before sending. But something tells me i'm not charging the right amount entirely.

    1 year ago

  • GemdropsoftheFalls

    GemdropsoftheFalls from GemdropsoftheFalls says:

    Amazing advice! Thank you so much!

    1 year ago

  • ambette

    Liz from ambette says:

    One point that I would like to add is that if you run your items through this formula and they come out unreasonably high (I know you shouldn't base prices on what you would pay, but there is a limit), perhaps that is the time that you should be looking at your design or processes to see if you can reduce the price by simplifying something, rather than paying yourself less or continuing to produce items that are unreasonably expensive that nobody will buy.

    1 year ago

  • XordinaryCranes

    XordinaryCranes from XordinaryCranes says:

    Thanks for the good advice! Really has gets the brain working!

    1 year ago

  • Jularee

    Rita Riebel Mitchell from Jularee says:

    I use a similar formula for most of my items. However, I get upset when I see others selling items at less than I pay for materials. Maybe if we all used this formula, prices would not be so different from shop to shop. Thanks for the advice.

    1 year ago

  • theresebritt

    Therese Britt from ThereseBrittsCards says:

    I am just starting my Greeting card site on Etsy. I wanted to see how to determine the shipping cost and the additional cost for any additional items. Any tips would be helpful. Thanks, Therese Britt

    1 year ago

  • ToDieForVintage

    Leann from LeannsVintage says:

    Great article, thanks!!

    1 year ago

  • Rogerb48

    Roger Baeumler from PhotographyByRoger says:

    Thanks for this great information. I struggle with this area and it was great read on what to include in the formula for setting your prices. Thanks!

    1 year ago

  • Zoharous

    belinda bakiraaye from Zoharous says:

    This is awesome... thanks!

    1 year ago

  • spinandtoss

    spinandtoss from spinandtoss says:

    Very helpful!Thanks for sharing! :)

    1 year ago

  • PolishMeFreddy

    Alfredo Ramos from PolishMeFreddy says:

    Thanks so much for all the advice & info, greatly appreciated. :)

    1 year ago

  • Tafipiri

    Tafipiri from Tafipiri says:

    Excellent advice.Thank you.

    1 year ago

  • carolinesboutique

    Carrie and Stephanie from carolinesboutique says:

    Thank you for breaking this all down! It really helps!:)

    1 year ago

  • stephanieturney

    Sophia's Wonderland from SophiasWonderland says:

    Thank you for for this excellent Blog and excellent tools!!!! There is so much great info, much appreciated!

    1 year ago

  • Perlarosa

    Ferdy Venturini from Perlarosa says:

    Thank you so much, an excelent Job !!!!!!!!!!

    1 year ago

  • knitella2011

    Esra Asoratti from Asoratti says:

    this is VERY helpful! thank u so much for sharing :) xx

    1 year ago

  • kitiwiti

    kitiwiti from kitiwiti says:

    hi guys, this is a great tutorial! THANKS! just to weigh in, the $0.99 only works if your selling price is $50 and you want to "trick' people into thinking its cheaper by putting it at 49.99 -- which makes it look like its $40 bucks instead of $50. however, as michelle and danielle indicated - the difference is probably minute for buyers and works only for lower end items.

    1 year ago

  • muffygirldesigns

    Muffy Girl Designs from Muffygirldesigns says:

    Is there a tax chart out there for cost of good ie.... if customer spend between .01 and.25 the tax rate is: ?

    1 year ago

  • Mberry85

    Megan Berry from LoupEsprit says:

    VERY helpful! Thank you! This is a much better starting point than trying to copy other people's pricing without knowing how similar their product is! :)

    1 year ago

  • AlejandraMorales

    Alejandra Morales from AlejandraMorales says:

    This is SO HELPFUL ! Thank you so much. Lucky us to be part of such a lovely community :)

    1 year ago

  • taneesijewelry

    MANJARI AGOCHIYA from taneesijewelry says:

    very well written.Thank you

    1 year ago

  • gothcoutureitaly

    gothcouture italy from gothcoutureitaly says:

    WONDERFUL, IM AN HANDMADER BUT SOMETIMES IN ETSY THERE ARE SHOPS HAT OUT A LOWERED PRICES FOR ONLY SALE. I CREATE EXCLUSIVE HANDMADE, EVERT PIECE FROM MY REAL BOUTIQUE IS EXCLUSIVE AND I DONT REPEAT THE ITEM SOLD...BUT SOMETIMES I HAVE DIFFICUL WITH BUYER ON ETSY THAT DONT UNDESTAND THE HANDMADER WORK...SOMETIMES, BUYER MAKE LOWEREST PRICE PURCHASE...I THINK THAT BUYER THAT WANNA BUY ON ETSY MUST KNOW THAT THIS AREA ITS FOR HIGHT QUALITY HANDMADER AND VINTAGE...

    1 year ago

  • Kamiann

    Kami from Kamiann says:

    This doesn't feel helpful to me. It makes feel lots of things, but helped and encouraged are not among them. According to this, my cotton skirts should be $158. I feel like I'm already pushing the market tolerance with $62. Well... I feel pretty hopeless now. Bulk fabric is out of the question, and I can't make them any faster. I'll make some goals and consider this. It is interesting stuff.

    1 year ago

  • vintagelove54

    Priscilla Hall from DreamCharmDesigns says:

    Thanks for the great article. I am amazed at the low prices that I see listed on so many items that fall into the same catigory as mine. I honestly don't know if people are doing it just for the fun of it and don't need to make a profit on it or what. But I know I can't even buy my materials for the prices that I see some items listed for. My shop is new and I am hoping that there is a market out there for what I love to do and a price range that will make it affordable for me to continue to create my designs. Definitely encouraging.

    1 year ago

  • abbypotash

    Abby Potash from transfirclothing says:

    This was very helpful and made my really think about my pricing. I'm def. under-paying myself for labor, but I think that's one of the toughest things for most artists in general. For one to even think about our personal creations from an hourly perspective seems un-natural. Also how it was broken into the 4 parts at first seemed crazy, but after doing the suggested research, and taking a closer look at how I produce my items as well as time management, I really feel enlightened with more insightful into how to do correct retail pricing. Thank you so much for posting this video.. Peace!

    1 year ago

  • caramia

    Carol White from caramia says:

    The article was very helpful, but you also have to keep in mind the time it takes to photograph your items, edit them, wait for the right sunlight, if you want outdoor shots, plus the the time it takes to describe, tag as well as price. Also I should be so lucky to sell 2 items per day as per the formula! I am lucky to sell 2 items per week! I think my prices are competitive compared to other shops that sell similar items. I would like it to be more than a hobby, but it isn't happening. It does blow my mind when I see a pair of Swarovski crystal earrings with lamp work beads and sterling findings for $5! And then offers free shipping to boot. I want to contact these people and ask what is up with that?

    1 year ago

  • asemione

    alice from asemione says:

    I've been doing etsy for a couple years but didn't really work at it year round till the last 6-8 months. I agree with above comment. People have no clue the amount of time it takes to photo and to write the description up. No two things I make can use the same desription. Sometimes If I make (say Christmas stocking gift card holders/ornaments) I can take the same basic description and change the colors and the prints. I usually design almost all my items so that has to be included. I find it hardest to figure out how much to charge for shipping.

    1 year ago

  • nicolefurney

    Nicole Furney from TheGemandTheJar says:

    Hi Danielle, I have a question. I have been putting my packaging costs (bubble wrap,boxes,tissue paper,thank you card) into the shipping cost. Is this ok? It made the most sense to me. Thanks! Nicole

    1 year ago

  • BeadingTimes

    Zeynep from BeadingTimes says:

    thank you so much for great info..

    1 year ago

  • Justinesjewelry4U

    Justine Redman from JustinesJewelry4U says:

    Hi Danielle, just watched you video, and it really helped, as I need all the help I can get, just opened my shop on Oct. 27, and still have yet to make a sale, I think my pricing is pretty well competitive, and I just don't know what I'm doing wrong. I just learned about being on teams, and I tried to join one lastnite, I forgot which one, anyway got an e-mail back saying I couldn't join that one, never got a reason back why???But really enjoyed your video, at least I got the pricing down pat pretty good thanks to you!!! Now I know about these videos too!!! The more I watch the better. Thanks again, Justine

    1 year ago

  • Stratfieldworkshop

    Amie Copeland Stark from ThatRetroGirl says:

    Is there a comparable formula for vintage sellers? That would be very helpful. Thanks, Amie

    1 year ago

  • StrangelyYours

    Lorraine and Glenn from StrangelyYours says:

    Very very helpful and super timely article!! We also realized it was time for a price change. Our items despite being laser cut, cut are still pretty labour intensive to cut, assemble, paint, etc. Also we purchase our materials at retail price which creates quite a bit of cost already. Throw in wholesale and we were making about $10/piece for all that work. Furthurmore i do this with my boyfriend making it a 2 person effort. Still not entirely sure if our current pricing works, but it now allows us to take in wholesale and consignment! Will definitely do a recalculation using the tips above!

    1 year ago

  • sarahcolby2

    sarah colby from sarahssilver says:

    Thank you for this !!!!!!!!

    1 year ago

  • SewSimplyFresh

    Kim Opoku-Ansah from StitchLightly says:

    This is such a wonderful article. But I have done all of this, recalculated, raised my prices to way above the going rates for my items, and then I don't get sales. I think just raising your prices and then just sitting there waiting for sales to roll in will not work. Perhaps they could add something else to this article about how to actually get sales once you raise yout prices.

    1 year ago

  • petitemignonette

    Lisa from TheCreativeHearth says:

    This is very interesting. I am just opening my store on Etsy and so really apreciate the information. Having been in sales of various kinds for years, I have noticed that both buyers and sellers have trouble understanding what a fair price is. A fair price is not always the most competative price - which is why so many artisans went out of business when the industrial revolution happened. Mass produced, machine made products will always be cheaper than hand made. So, if your product looks the same as one from a big box store, you won't be able to sell it at a fair price. Period. If you want to get a fair price, you need to stand out.......and you need to be realistic. If you want to sell to average moms, only use materials that will keep your product in the right price range. Just because you love making something, doesn't mean you can sell it for a fair price. The market may just not be there. So, if you want to make a fair profit, and aren't, look at changing your product or production methods. Consider whether the item you are trying to sell is really a good candidate for sales at all. But for pete's sake - Don't take complaints about your prices seriously! People will always complain about prices no matter how low they go. Don't undersell yourself! Would you really go work for someone else for $5 (or less)an hour? If not, then don't do it to yourself either. Find a way to add value to your product and then be brave and charge what it is worth. If you are having trouble with sales, ask a money (or business savy) friend or consultant for advice about your product. Actually, only ask a friend if you can trust them to be brutally honest. Check your marketing strategies. Lowering your price should be your last resort. Thanks for such helpful information.

    1 year ago

  • martysbasket

    Marty W from MartysQuiltShop says:

    I want to offer my item at $15 each or 2 for $25. How do I handle this if and when it sells? My item lists $15 as the price. I put 2/$25 in the item description. I would need to adjust the shipping also on the sale. Help please, I am just getting started on Etsy.

    1 year ago

  • HealthyHabit

    Amy from HealthyHabit says:

    I have been wondering about this! Thank you for the article. It was very helpful and informative. You brought up things I didn't even think about or take into consideration.

    1 year ago

  • BePrettyBeBold

    Liz from BePrettyBeBold says:

    If anyone on here could take a look at my shop and give me a critique I could do the same for you. I have been selling a few of my silhouette ornaments but not sure if I'm undervaluing my work as it takes quite a bit of time to get the materials, make the silhouettes, convo with customers, list items, etc... I really want to do well on here just want to make sure I'm not wasting my time. This article did help though, just makes me feel like I need to raise my prices a bit on certain items.

    1 year ago

  • RoughMagicCreations

    Mollie Ann Meserve from RoughMagicCreations says:

    Such a wonderful article, I've bookmarked it! P.S. Danielle, I miss you!!!!

    1 year ago

  • clairedriver

    Claire Driver from OhDarnit says:

    Thanks for a great video! the first one I've watched since opening my shop a few days ago and I'm still struggling with pricing! Back to the drawing board (or Excel spreadsheet to be precise!) thanks again, great dynamic by the way & love your energy!

    1 year ago

  • pandorashack

    pandorashack from pandorashack says:

    Great tips! Thanks!

    1 year ago

  • SnowdropsDesigns

    SnowdropsDesigns from SnowdropsDesigns says:

    This is a very encouraging video! I realized that I'd been underpricing most of my items, so I started raising the prices little by little and am still making sales. It's great to know that I'm on the right track!

    1 year ago

  • KelleyQuigleyDesigns

    Kelley Quigley from KelleyQuigleyDesigns says:

    Great advice! I struggle with pricing since I invest a lot of money on quality materials, but hate to charge much for my designs. This video really encourages me not to be afraid to charge for time and packaging as well. Thanks!

    1 year ago

  • kornerstonefarms

    kaiser family from kornerstonefarms says:

    this was extremely helpful to me. I've kept my prices a tad lower assuming that would help bring in customers, but that's not proving true!! I believe I do quality work and I put so much time and effort into everything I make! We should be rightly paid for our work. Thank you!!

    1 year ago

  • MC2design

    Marie-Claude from CocoBoho says:

    I constantly come back to this post. It's good information! I'am currently revamping my whole store with new products and I want to make things right. I think having goals is essential and I am starting 2013 fresh! :) Thanks again Etsy for those useful technical posts.

    1 year ago

  • Amyshandmadejewlery

    Amy Escobar from Amyshandmadejewlery says:

    Thank you so much. Now, I understand how others get their pricing. This is something I have been struggling with for some time now. I will work on fixing it right away. After the formula I saw that my prices were pretty much on target, more or less, but I hadn't add anything for my trouble or retail price. I am trying hard to do the right thing here and after I fix my pricing, it should help everyone.

    1 year ago

  • CashmerenChickenCoop

    Joanne Dean from CashmereChickenCoops says:

    I studied all these pricing articles, followed the formulas, and still had to lower my prices, because I don't think the market will support it. I tried to have confidence, my designs are complex and are made of the highest quality. I tried to follow all the shop suggestions. This all sounds great but I still haven't made a sale. Now I feel like I should just lower prices to match everyone elses although I won't make any money. Or should I just close up shop? Am very confused.

    1 year ago

  • HarlequinFantasy

    Javier Meza from HarlequinFantasy says:

    Great advice =)

    1 year ago

  • LaraineRose

    LaraineRose from LaraineRoseHandiWorx says:

    Thank you for this informative article. I have just opened my shop with a couple of handmade baby sets and will try to add one or two items daily. I found the business side of selling difficult but I'm sure with time and fine articles like this one I'll soon be selling. Thanks again!

    1 year ago

  • beloveddoll15

    Beloved Doll from BelovedDollDesigns says:

    Pricing is sooooo tricky. I've moved prices up to get closer to what these pricing guides tell you and I'm still not making sales. Maybe other considerations, such as number of stock, factor in whether or not sales are made and this should be discussed?? Not sure, but there is definitely a lot of trial and error in the beginning here.

    1 year ago

  • sarahahenry

    Sarah Henry from Ideodyssey says:

    Thanks for the tips. Most helpful. Will be using these ideas and tips in the future. My shop is new and articles like this are really helping me out.

    1 year ago

  • sarahahenry

    Sarah Henry from Ideodyssey says:

    Not only is the article very helpful, but all the comments from other sellers. I need to do a bit more research re: how I price my things. I probably don't price them according to the work I put into them, but I think as a newby my pricing is fair. We shall see I guess. Thanks to every one for sharing feedback and to you for all the tips.

    1 year ago

  • HallderVintage

    Hallder from HallderVintage says:

    Checking sallary ? You know what ?A tailor in my country makes hardly 2,5 € a hour ,and he has to pay 20% tax from that ...

    1 year ago

  • adakarinaaello

    Aura Lavender from CharoiteWind says:

    Loved it! Thank you I hope it's okay my price goes way up all at once. I have had contests to give away my designs as a marketing technique but since I haven't really sold anything it's okay that I up to par my price immediately in my category. Thanks again. I also gained some insight how my story and really unique services give my items more value. I always thought it wasn't as important but now I do and I can enjoy what I do even more!

    1 year ago

  • rachelsmith958

    Rachel Smith from SilverBeeCreations says:

    Just wanted to say thank you for the tips! It really helps to have the advice. Pricing is tricky and I really do not want to sell my self short or over price. The formula really helps to put things into a clearer perspective.

    1 year ago

  • Shanay8625

    Shanay Worthy from ShanaysCreation says:

    Thank you for your tips. This is really helpful.

    1 year ago

  • marjrc

    Marjorie Rowe-Callisto from marjrc says:

    If I followed this formula, I'd be selling a pair of my pot holders for over $50, which no one will pay! I understand the concept, but the reality for me is that I can't follow this and expect to make a sale at all.

    1 year ago

  • VintageMollyJewelry

    Molly Healy from VintageMollyJewelry says:

    This is really helpful, because I think some of my pricing looks erratic (or it just is). It's very difficult for me to price pieces. I'm going to try your advice and see how it goes, especially since I am new to selling (not buying) on etsy. Thanks so much for the article.

    1 year ago

  • Lakeperson1

    Sue Cloutman from Emmasdollshop says:

    I've seen this formula used many times and in an ideal world it would be great. But I make doll clothes and there is tons of competition. People seem to be giving their stuff away and making tons of sales. I haven't sold anything and it's frustrating. Ideas? Emma's Doll Shoppe

    1 year ago

  • jensstudio

    jenIe yolland from jensstudio says:

    I agree with the people above me here - I think the price theory here is great , in theory, but when customers can purchase cheaper products that are "similar" they vote with their wallets.

    1 year ago

  • cyarrow

    Christopher Yarrow from StyleUsPens says:

    One little ditty I heard which I think will be helpful for those who worry that their work is priced to high. There was a little sign on the wall of a hardware store which simply said (When the customer complains that the price is too high) That your competitor is in the best position to know what their work is worth. That kind of sums it up for me.

    1 year ago

  • IndieLookKnitwear

    KD Dean from TheKnittyContessa says:

    "...Here’s why I’m going to beg you to double your wholesale price and sell your work at a true retail price..." Those are your words as a representative of Etsy yet Etsy constantly features items on FB that are priced well below value and highlights them as a great deal!

    1 year ago

  • shimmershow

    Suzette Bishop from ShimmerShow says:

    You saved my life! Thanks :)

    1 year ago

  • HowlingHuskyBakery

    Jamie Gregory from HowlingHuskyBakery says:

    Hmmmm...Lots to think about! I think I need to do some calculating!

    1 year ago

  • zafteLV

    Inara Gauja from zafteLV says:

    Thanks, someone thinks instead of us for our benefit :)

    1 year ago

  • MargosCrafts

    MargosCrafts from MargosCrafts says:

    Thanks soooo much for the pricing info it is very helpful!

    1 year ago

  • 77Fred43

    Fred Milgram from FredsGraphicsPhotos says:

    I started construction business in 1972. I was charging $5 ph and 20% mark up. One day three other contractractors cornered me and taught me what this article is about. I raised my prices to $10 per hour - marked my materials up to 50% profit and I had to work less time and made more money. I was in business for 47 years. Thanks to my competition I had developed my pricing. I was not only hurting me with low pricing I was effecting them as I was under charging their customers that called me. My capture rate fell from 95% of calls to 65% of calls and I doubled my income and got better customers.

    1 year ago

  • stephjkane

    Stephanie Kane says:

    I have a tendency to get bogged down in details, then just give up and throw a price on there... It's easy to account for things like the jar you had to put something (like a beauty product) in, but how do you account for things like essential oils which may make 50 products? And even then it's hard to tell how long different last...

    1 year ago

  • bradenhammondglass

    Braden and Kristina from BradenHammondGlass says:

    Great article! Pricing is always a little tricky, especially when prices for things are so different in different parts of the world, like studio space!

    1 year ago

  • TreasuredPerfection

    Holly Tresuredperfection from TreasuredPerfections says:

    here I thought just materials + desired hourly/time+.5=price

    1 year ago

  • jamiesimper1

    Jamie Simper from JamiesHandcrafted says:

    I had been concerned that my pricing was too much. This article puts me dead on! I feel much more comfortable now but other shops have the same products at a consistently lower price. I had to match what my soap sells for at the local shop. I would loose my standings with them if they had to compete with my web site. As mush as I love selling close to home I need the outreach to broaden my customer base. I think others are not considering the time checking for orders, the time spent packaging or the liability involved with these extra steps. Maybe I am just using more of the pricey ingredients then they. At least I know know that I haven't over priced my inventory. Thank you so much for taking the time to put this together. It is very kind of you. :) Jamie

    1 year ago

  • stars94

    Christine D from JewelsHandmadeForYou says:

    Thank you for taking the time to help us with pricing (one of the hardest parts of running a successful business). Keeping a balance between offering quality goods as a reasonable price, and making a profit is always a struggle. What great advice Danielle! Thank you.

    1 year ago

  • thumb2felt

    rita esti kusumawati from thumb2felt says:

    it's very useful info, thank you :)

    1 year ago

  • Eefje91

    Eve from DarkEveNings says:

    So... Do I read the formula correctly, and "Materials + Labor + Expenses + Profit" is your retail price? And also twice your wholesale price, so wholesale would be half? Or do you mean "Materials + Labor + Expenses + Profit" is wholesale, and you get retail by multiplying that? I still don't really get the formula because I wouldn't add in profit - it's a side job, I don't want to quit my 'day job' (college) and if I want a new sewing machine I'll use my 'labor' price for that, I think... Because I also use it privately. Or maybe divide the cost over a couple of month's of sales. What do you use profit for?

    1 year ago

  • Eefje91

    Eve from DarkEveNings says:

    Now I watched the video and I understand what the formula means, but I think it's written wrong. Right now it says that all those costs add up to twice the wholesale price, which it doesn't, it's just the wholesale price and you double that for retail. It should be two different formulas. But then, using this formula, my prices would be ridiculous! I even think prices would be high if I factor in a profit (I want to make a 15 euros hourly wage, maybe that is too much?), but then you DOUBLE it? And the girl in the right in the video talks about doubling material cost, then factoring in wages and then doubling it again at the end! Would you buy a shirt if it cost 137 euros and was pretty basic? (materials 8 euros, 3-4 hours to make it... not even factoring in profit yet!) (I was thinking of selling that shirt for about 60 euros, and maybe not selling it at all because it's too expensive... too much work to make!)

    1 year ago

  • pangeran02

    Deva Prast from japancase says:

    Thank you, this is a very good article. because it is useful for me and my online store. Greetings success.

    1 year ago

  • SqueakyCleanBath

    Jennifer from SqueakyCleanBath says:

    I've read over this about twenty times, and I don't understand it at all. I'm keep getting that I should be charging $20 for a 2 oz bottle of lotion. I feel like there's some sort of crucial information missing here - a more detailed example would have been better, rather than saying "I'll let you come up with what you're going to put down for profit, and I'm not going to show you any suggestions." I mean, is this profit for an entire year, or what? And I can make like 10 lotions a day, but I can make 20 bath salts. Would I be using this formula for each and every item? Either I'm too thick to understand, or this doesn't really apply to me. Either way, it's giving me a headache.

    1 year ago

  • AllyFashion

    Tina Giuntini from AllyFashion says:

    Will be using these ideas and tips in the future. My shop is new and articles like this are really helping me out.

    1 year ago

  • zenophobe

    Tina Giuntini from BeaEvie says:

    Thank you so much for the pricing info, it is very helpful!

    1 year ago

  • timlesscreationsbyCW

    Connie C. M Wood from TimelessPrisms says:

    Thank you so much , this pricing Info is very help full, as a newcomer you question everything. This is so very nice of you. Thank you again!

    355 days ago

  • shalanehopkins

    Shalane Hopkins from PaperKiteCreations says:

    This was SOOOOOOOOOO helpful to me - pricing is something I have always struggled with as I feel bad if I price things "too high." I love that this helped me break down the actual cost of things that brought things back to being logical rather than an emotional decision on what to price.

    355 days ago

  • chezvies

    Elvira from chezvies says:

    This is really helpful. I used to just eyeball it, and one day I sat and started re thinking about my pricing, still I seemed to be missing the "expense" part. This is one thing that many maybe overlook. Especially if you live in the outskirt where going out buying supplies is a lot of expenses. Thanks for the simple guide!!

    339 days ago

  • KenLeeAna

    BriAnna Blake from KenLeeAna says:

    This is perfect! Thank you for the tips.

    320 days ago

  • ByLightoftheMoon

    Susan Hatzinger from ByLightoftheMoon says:

    Pricing is hard for me also, but this has some great tips for thinking through it and calculating a fair price. Thanks!

    318 days ago

  • Cscraftedcreations

    Cynthia Weaver from 3Csshop says:

    Here's the thing: If I were to make a good-size afghan, I'd have to sell it for $240.00, if I follow your formula. I can't believe anyone would pay that much for an afghan. I know I wouldn't.

    315 days ago

  • usee1isee2

    David Navarro from GenReyGifts says:

    BRINGING IT ALL TOGETHER Selling your work at a wholesale rate undervalues those who price their work at the proper retail price. When the majority of sellers in a category price their work thoughtfully, the entire category benefits. I have recently seen this WAY too much (low balling). But soon those low balling sellers will feel that it's just not worth it for the time spent making their items. Kind of feel bad for the ones selling their items at reasonable retail prices and losing to the low balling seller trying to steal business. I'm sure Walmart could price some of their items $3 - $5 cheaper than Target but it's the principal why they sell those items only $0.25 cheaper.... and because if an item is even only $0.25 cheaper, customers will drive 10 miles out their way to buy it. It's a balance that companies (sellers) need to keep for the sake of the retail business. Some just have no idea and most just don't care... Overall, good article. I kind of use this method to price my items, and although I haven't done the math on paper (just in my head), I have to slightly agree with Cynthia W, that my prices would be much higher than I'd even anticipate.

    307 days ago

  • akshaysogani

    akshay sogani from Bhagyodayfashions says:

    Very helpful formula! This is something I'll keep handy. Thanks!

    300 days ago

  • rhondac30277

    Rhonda Carter from RhondasCanvasCrafts says:

    Just the material on one item, a 3 3/4" x 3" magnet, is only 26 cents, yet just doing an estimate of expenses for this one item but not adding profit or labor I'd have to charge $12.94 with the formula materials+expenses=wholesale x 2=retail. Now tell me how many of you would pay $12.94 for a small magnet? Probably not any of you. And as I said I didn't factor in profit or labor! I sell it for $3.25.

    294 days ago

  • willowpoppy

    Willow Osborn from willowpoppy says:

    So helpful and encouraging - thank you!

    293 days ago

  • amberescoto

    Amber Escoto from DandHBows says:

    i havent sold anything yet and im wondering how much is the fee after an item has sold?

    289 days ago

  • STLWOOD

    Mike from STLWOOD says:

    I'm all for making profit. I've operated my own businesses and always made a profit. If I did not want to make a profit I'd be giving away what I make. However, your equation leaves a lot to be desired. The ending argument of "x2" is pretty greedy. You already have "profit" in place, so if you have to multiply everything by 2, that's just plain selfish. First, determine whether you're going to concentrate on wholesale or retail (one does not preclude the other, but your model must be based on one or the other). Profit should be stated as margin...the difference between price and costs. A more realistic equation, which can be adjusted for market, is (Material + Labor + Overhead) * Margin = Price. This can be used for either retail or wholesale pricing by simply changing the margin. Jewelers who maintain shops often have a margin of 1000% or greater in order to cover expenses. Grogery stores traditionally have a margin of 2-3%. Most home based craft businesses operated part time or as a hobby should have margins in the 10% - 30% range with most in the lower end. Margins for those Etsy members that sell exclusively on Etsy for a living should have margins in the 30% - 100% range. The last consideration in determining margin is the total profit you want or need to make in a given time frame. Annual is the easiest to figure because seasonal ups and downs are already taken into consideration. Gently spoken.

    285 days ago

  • couturenicole

    Nicole from couturenicole says:

    Perfect! Thanks for the help.

    280 days ago

  • anumissler

    Anu Missler from SundariJewelry says:

    Thanks so much. Very comprehensive. Very helpful. Great job!

    261 days ago

  • FiolettaKK2

    Fioletta from FiolettaKK2 says:

    Great video, but what if I am selling small items, like polymer clay charms, I still can't figure out what price to put on And also I don't have that much buyers, it's maybe 3 buyers per month.

    255 days ago

  • VaraVintage

    Jayna Rodriguez from VaraVintage says:

    I love these post! They are so helpful especially for a newbee like me. Although I feel as if they are more targeted toward a crafter. Would the same formula apply to a curator or vintage cultivator like myself?

    251 days ago

  • ketybagwalla

    Kety Bagwalla from VividSilks says:

    I am just starting out and going through all the relevant and useful education in Etsy's Sellers Handbook.before I set up shop. Hopefully I will be able to figure out all the tips and tricks to be able to sell successfully on Etsy. I would, however, love to get in touch with a successful 'Etsy seller' to get first hand view of the process of setting up a shop..

    241 days ago

  • sabrakitty

    sabrakitty from TheGeekFish says:

    What are your thoughts on pricing knitted/crocheted items? Because it takes so long to make these items, if I were to pay myself a decent hourly wage, then using the quite nifty pricing formula you gave, most, if not all of my items would be crazy-expensive. Help! (By the way, for every other type of item I'm planing on selling, the info you gave was VERY VERY helpful, thank you!!)

    239 days ago

  • minskis

    Minskis Rocys from Minskis says:

    So cool:) Really great stuff

    224 days ago

  • Benjaminflorence

    Florence Benjamin from HandGlories says:

    Total Cost Of Production is as a seed sown. And a seed is just as10% of the fullness of a fruit. therefore if total cost of production i.e cost of materials,labor,expense,etc=$10. Then to reap "a fruit of fullness" ,salesprice must not be less than $100 which is 100% of $10. By so doing you get back the seed sown. And you can resow and resow in that cycle. It's the law of multiplication.its how we can "eat our cake and have it at the same time". Otherwise recession may never end!

    210 days ago

  • AidaPetre

    Aida Petre from AidaHandmade says:

    I'm just starting out and, as so many of us out there, the pricing is the hardest part. Although the formula is great and covers everything I still have some questions: for example, I want to sell purses and bags made from recycled paper and magazines (that I bought over the years) and the required time to make a purse (25 cm x 15 cm), from start to finish, is about 70 hours. If I were to give my self 50 Euro cents /hour and use the formula, the price for my purse would be over 250 Euros (and I didn't include a profit and the materials can't come cheaper that I now use), when the average price of a similar purse made with the same technique on etsy runs from 50-100 Euros. How can I start pricing my products fairly and still make a profit? This is my big dilema.....

    202 days ago

  • SarahDoreen87

    Sarah Doreen from Chapter42 says:

    I opened my shop back in June. I just sold my first item. I was thinking about knocking my prices down because I thought maybe people were thinking they were too high, but making leather journals by hand is time consuming. But then again the item that I sold was the most expensive item in my shop. I actually made the price lower than what the template said it should have been...about $40 lower. I am so confused. Are my prices too high or do I just need to find more ways to direct traffic to my shop? I just created a FB like page and a pinterest account this week. I also try to find deals on leather by doing my best to use reclaimed materials so my prices aren't outrageous but I'm just still not sure.

    198 days ago

  • amanobiznez

    Lorena Garcia from AmanoBiz says:

    I am facing the same problem Sarah. WE have been trying to figure out our pricing and really, the material and time and all of that formula to make a wire wrapped bracelet would price the bracelet at $140! I just think that is way way too expensive, so I basically only calculate my time as if I was working, what would I expect to be paid per hour. It takes me about 1.5 to two hours to make a bracelet depending on detail... so... I am also not sure how to best calculate my prices. I also haven't sold anything yet. I don't know if it's because I charge for shipping, or if my prices are too high or too low.... This is a helpful formula, and maybe it will work for some of my items.

    195 days ago

  • geezemarie

    Jewelry by Giamarie from JewelrybyGiamarie says:

    Great Article! However I'm totally confused over the formula. See, I'm starting to give this Etsy thing again, I don't have too many expenses -at least not yet. I made a necklace that took me 2 hours (I will always charge 2 hours) and the supplies and beads cost me a total of $11.31 Based on a formula I was given (from another site) This is how I am supposed to price: 2(hours) X11.31(Supplies) = 22.62 22.62 X2 = 45.24(Whole Sale) 45.24X2 = 90.48 (Retail) So in essence I am to charge $90.48? I am not sure how to figure in the other expenses I occur.

    188 days ago

  • RoyallyUrs612

    Alanna Miller-Jirdon from ExclusivelyUrs says:

    I wish I had a way to save this!

    185 days ago

  • lynettabaker

    Lynetta Baker from Lynettasboutique says:

    Great article.Full of helpful insights for those of us who like me are getting their products ready to sell and are wondering just how much they should charge.I was going to go wholesale on my pricing.But lets face it folks.Our time and talents are worth something are they not?

    179 days ago

  • NewBundleOfJoy

    Nataliya Birmingham from NewBundleOfJoy says:

    How do you add a state sales tax to your price? Is it to be added by me to my listing price?

    178 days ago

  • ElvesLi

    Mia Chan from CantonVintageStore says:

    Finally I discovered this....

    176 days ago

  • margaretmarks

    Crystal Tadvanam from Dharmaline says:

    Please keep in mind that the traditional retail markup was developed for brick and mortar stores with different needs than we have as online sellers. Charging someone retail on Etsy doesn't make sense because we do not have the costs of a traditional retail operation to account for. I won't double my wholesale because it is an outdated model. I'm trying to find a new structure. If I followed a traditional model I'd profit $100 on each piece of work I sell. I believe in my work and have been raising my skill levels for 15 years now, but that's a lot of moolah! A new paradigm for online selling has not yet been created so we have to create one. If I have a piece that cost $10 for materials, $45 for labor, $10 for fees and for studio costs, that's $59. If a retail store wanted my piece I could tell them it is $65 wholesale. It's up to them whether they want to take it and mark it up to $130. If it will sell, it will sell. Where does that leave my Etsy or Big Cartel customers? Somewhere in between, but certainly not at $130. Not yet anyway! I hope it helps to be reminded that the traditional retail mark up was not created for online sales, where the day to day operating costs are lower. We also have an issue where consumerism is based on how much someone can get for their money. If consumers wanted less things at higher quality it would shift the values but the values right now are mostly based on accumulating quantity and not on carefully collecting truly useful and beautiful things that tell a story and come from someone's heart. It seems that profit should be considered as a percentage rather than a 2x wholesale kind of thing. Selling my work at wholesale plus a certain percentage is enough.

    167 days ago

  • ColleenEve

    Colleen Eve from ColleenEve says:

    AMEN for this post. Thank you!!!!!!!

    164 days ago

  • GraciesKorner

    Carol from GraciesKorner says:

    You have a broken link for your pic at the top of the page.

    162 days ago

  • go2girl

    Kila Rohner from Go2Girl says:

    I'm always coming back to this, back to review again. However, I keep lowering after I calculate just to ensure sales. Thanks for these tips and reminders, they get us thinking about how we operate our small business if we want to make a profit.

    159 days ago

  • CartierLePapu1

    Omayra Rivers from CartierLePapu1 says:

    Great ideas... thanks

    156 days ago

  • LindyLeeTreasures

    LindyLeeTreasures from LindyLeeTreasures says:

    Well written article, appreciate the thoughtful methodology.

    147 days ago

  • luzcaluz

    Luzca Luz from Luzcaluz says:

    Thanks for your article! It was very helpful for me!

    128 days ago

  • amilise

    Sharon Gonzalez from Copperamano says:

    Great advice! From a personal viewpoint, I've found that confidence in yourself , and of course your product, is very important. It's good practice to look around and compare yourself to other sellers, but just as important to believe in the quality of your work. If you're insecure, you'll price it lower (thinking it's worth that price point), which sends that very message to your potential customers. If you don't believe in the quality of what you create...then how is anyone else supposed too?

    126 days ago

  • SummitMarker

    Mark from WhiteMountainWorks says:

    As a new shop owner, this helped a lot! I look forward to continuing my shop's early success with these tips! White Mountain Works

    122 days ago

  • larryradtke

    larryradtke says:

    I didn't notice a discussion of competitors' prices. How can we expect to succeed if our prices are "out of the market?" It seems to me that if we cannot price our products competitively, we would be better off not starting the business in the first place.

    121 days ago

  • galebellew

    Gale Bellew from BellewDesigns says:

    This is all well and good but when you have folks/hobbyists who offer their work and appear to price it without labor considerations and barely above the materials costs not to mention depreciation for equipment and tool replacement over time, It makes it hard to compete even if you only want to cover the materials costs you describe and at least make minimum wage. I have struggled with this issue for more than 20 years with other venues that I sell at. IF someone is knitting a pair of mittens using alpaca or fine wool, even at wholesale, the materials are costing at least $4-5 and perhaps more per pair. Add to that the 3-4 hours to make a pair of hand knit mittens and call it $21 for labor. I know many who sell hand knit mittens for $20 or less a pair and they aren't just plain knit! They knit color designs and use premium materials! When I try to have a conversation about it with them, they say, well I don't care about my time because I love doing this in my spare time. It's my therapy. Until hobbyists approach their craft from a business perspective instead of a hobby/therapy one, we will always struggle to be able to ask what our products are worth and be able to compete. Keep in mind I am speaking of the fiber art world. Other trades may be very different. Additionally, in effect we also compete daily with imported manufactured items from around the world and perceived value. It is NOT possible for me and many other artisans to use this formula and be able to sell work through Etsy and many other venues because much of the competition never will. And if they did, no one would buy. In the few short months of being on Etsy I have learned that the customers at the other selling venue that I do (an educational fiber event at an agricultural fair) are much less price resistant. I demonstrate the creative process while there and people want to become a part of that and they also learn to appreciate what goes into making something by hand. They are always amazed at what is involved and how long it takes especially when hand stitching might be involved. On Etsy I have had to reduce my pricing to be below wholesale and am still am higher than most of my competition regardless of the materials, original design or workmanship involved. Perhaps it's because on Etsy they are able to see photos of hundreds of items in a search without being able to examine workmanship and materials quality. Or perhaps it's that there are too many others making what I make even though I feel my products are of higher quality using better materials and original in design. I get lots of looks/hits but have had a disappointing number of buys compared to my other "live" selling venue. I had left over product from my last show which Is why I decided to test the waters with etsy. One of the hesitations I had about Etsy is that selling is not juried. I have not enjoyed shopping on Etsy in the past because I have to sift through a lot of lower quality craft items to see the artisan quality work that I am interested in. When doing a search, my quality craftsmanship and materials, using original designs ,sits next to others creations of equal integrity while at the same time often sit next to something I might see at a church fair. I recognize the difference and there is definitely a place for both but many may not see or understand the difference. They only see a picture and the price. Perhaps Etsy would consider creating a juried category of shops. Neiman Markus and Sax would never sell their goods next to Walmart items and the opposite holds true a well. Something to think about Etsy! Perhaps I need to do a better job of describing my work to convey the design, quality and craftsmanship that I am offering. But how much time do I put into that and not get paid for as well? I spent days setting up my shop and taking photos, drafting descriptions etc. I only have so much non paid time to devote to marketing. IF I could find a way to sell product using your formula I would be glad to. Unfortunately, the only way I could do that is to send my work to Bangladesh and then no one would want it! Neither would I.....

    120 days ago

  • giftsbylynda

    Lynda Williams from CrochetByLynda says:

    This article, and all the comments, are very useful - thanks to all of you! I opened my shop yesterday, but have sold my crafts off and on over the past 30 years, and it's been a good ten years since my last attempt at deliberately creating work for sale. Pricing has always been difficult for me; this is a good base to start! When I make a bid for a web site (I also do web design), I estimate how many hours I spend and multiply by my hourly rate. My expenses are the same whether I make web sites or not, so that doesn't enter into it. Then I look at the perceived value of the site from my customer's point of view. If the total I come up with seems low based on what the customer expects from the site, I raise it and send out the bid. If it seems high based on the same criteria, I lower it. But you can't do that when you are providing physical goods. I first looked up examples of my single starting item, because I wanted to be within the market range here. That helped, and I think the single pair of crocheted slippers I have on my site is priced appropriately. I don't want to make a living doing this, but I DO want a reliable second income, I DO want to be appropriately compensated for my work, and I DO NOT want to lower the standards of quality or market value for other Etsy artisans who are, or will be, making a living at their craft. I will be increasing my offerings over the next few months, and a pricing formula, combined with the what the market here will bear, will make life much easier!

    107 days ago

  • pdphelp3306

    PamalaPhelps from TamuCreations says:

    Very useful information. Question...once you have found that your prices are lower than the should be, what is the proper protocol for making changes to pricing when the price will be increased?

    104 days ago

  • izziemb5

    izzie b from simplyhappybyizzie says:

    i was just wondering what an average profit number should be I am confused in that aspect of the equation

    100 days ago

  • foxdenvixen

    Cori Foxworthy from foxdenvixen says:

    I have a few items that I have been trying to sell for a couple of years. I read this article and a few more on the web. I went back through my receipts for the supplies and did all the figuring and raised my prices. These pieces now cost more than other stores selling the same type of jewelry. I make layered metal pieces that are lanyards, which makes them unique as other stores sell necklaces, bracelets, or rings using the same technique. However, their necklaces for instance are much less expensive than mine. Mine are larger focal pieces so maybe that is the difference. I am now purchasing supplies for my next piece and the cost for all supplies purchased here are around $70. Working the formula that will make the finished piece around $215 to sell. Ouch!!! I know there are people that will pay that much for a quality piece and I do create quality pieces, but how long before it sells? How do I get buyers? I have added as many keywords, etc that I can think of and am doing all the social media I can think of, etc. Raising my prices scares me as I was unable to move the pieces with lower prices. I have several hearts on the pieces, but no one purchased them. I am at a loss as to what will happen with higher prices in my store. Don't get me wrong, I love creating my jewelry. It is something I really enjoy, but I want to sell these pieces as well.

    98 days ago

  • rysslameldesigns

    La Verne Epperson-Harp from RyssLaMelDesigns says:

    I really appreciate your article about pricing. I have had products that I sold at wholesale, but in fact, I lost money instead of making money. The one that came out ahead was the one that bought from me. I didn't calculate all of my expenses into that wholesale price. Don't make that mistake and lower the value of your products. Your time and effort is worth every minute you put into it! Thanks for the very good advice!

    97 days ago

  • MedicalDictation

    MedicalDictation from MedicalDictation says:

    Love this article! There's a delicate balance with pricing when you offer a product like mine. Its very important that I keep the end user's budget in mind. Thanks!

    93 days ago

  • thomo551

    Colleen Thomas from ColleensCreativities says:

    Thanks. This is helpful information.

    89 days ago

  • c4glover

    cheri glover from cherigloverartist says:

    That's such a good way to do it! No more flying by the seat of my pants.

    79 days ago

  • barbarahermann1

    Barbara Hermann from QueensAve says:

    I've worked retail before and the labor was always calculated after the cost of the materials. I do (Materials x 2) + labor = retail price. I figured the profit was in the markup of the materials. No?

    79 days ago

  • barbarahermann1

    Barbara Hermann from QueensAve says:

    I also figure the cost of my shop and expenses to run it into what I pay myself per hour. I don't add in stuff like electric, etc.

    79 days ago

  • JewelsYogaTurtle

    Jewels of the Yoga Turtle from JewelsYogaTurtle says:

    Thanks for the good information in this pricing article. Pricing is always challenging until you get the hang of it. I took a look at my pricing and will be making updates to my site this week. (lower prices!)

    68 days ago

  • debbiepike54

    Debra Pike from DebbieScarves says:

    I have sold art and crafts for 30 years. The shop that taught me pricing advice says we never get our labor, but to double your expenses.

    68 days ago

  • greenjellogreen88 says:

    This is especially helpful for me since my etsy business is not even a month old yet. I like to think of myself as an entrepreneur of sorts and love learning the important ins and outs of business. This is super helpful. Thank you.

    58 days ago

  • sexypleasures says:

    Good article, full of information for beginners. Thanks!

    58 days ago

  • sexypleasures says:

    Good article, with useful information. Thanks!

    58 days ago

  • earthlovemagic says:

    This does make me feel better. I sometimes have a hard time asking for what a product is worth. Somehow, some people think handmade should be cheaper than store bought. My prices may be more than other businesses that are creating similar products but my materials are organic and extremely high quality, that means more costly to create. Being a new store I would love to price competitively but then I would make nothing. Pricing can be so frustrating! :)

    57 days ago

  • discovertrove says:

    I am just beginning to list my products - I am glad i am glad i decided to look for tips before i go officially live - Need to definitely re-work on the pricing bit!

    42 days ago

  • jaredschrock

    jared schrock says:

    Question. So say I spend $10 on a semi mount pendant, to set a stone in. And the stone only cost me $8 and the chain $5. How can I figure out what the retail price will be? I kinda get it, but seems like a $23 necklace will sell for alot of money! Im not sure what to charge for labor and expenses as well as making a profit. I only want to sell to make a little extra cash each month.

    28 days ago

  • GaryCapps

    Gary Capps from CraftMakerPro says:

    The one thing I always see in these articles about how to price craft work is that most people just have an hourly rate in mind that hey then multiply up along with the cost of materials. While its certainly better to use some formula its even better to actually work out what your overheads are for your business and make sure that hey are accounted for in your hourly rate. Also dont forget, while it may take you an hour to make xyz piece, what about the time you spend working on your business. Updating your Etsy store, ordering supplies etc ect. This is all time that you shuold be accounting for or you will find that your hourly rate is probably 2/3rds to a half of what you think you are actually earning. http://www.craftmakerpro.com/a-z-handmade-business-guide/key-pricing-handmade-products/

    16 days ago

  • mypieceofwood

    Hanna G from MyPieceOfWood says:

    I have just realized that my prices are to low. I'm afraid of incrasing prices, but at this level I have no chances to earn money... Thank you for this article!

    3 days ago

  • susanharris731

    Susan Harris from LadyBluesBaubles says:

    Danielle, thank you so much for this usefull information. I don't want to over price, but I am here to make money

    20 hours ago