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Etsy Success: Reevaluating Your Prices

Oct 28, 2010

by daniellexo

Etsy.com handmade and vintage goods

Before the holidays hit, and your shop is all abuzz with gift givers looking for that perfect item, you might consider digging a little deeper into your pricing process. Wouldn’t it be a shame to sell all that stock and subsequently do the math, only to find out you don’t have any money left over to reinvest in your small business? So today, in our next Etsy Success Holiday Boot Camp post, I want to chat about reevaluating your prices.

Brass Calculator Adding Machine Necklace by michaelandsabriney

Figuring It Out

Here’s a simplified formula, a good place to start:

Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price

Wholesale Price x 2 = Retail Price

How do you figure out your labor? Take the time spent creating the item (remember to include shopping for supplies, creating packaging, etc.) and multiply that by the hourly rate you’re going to pay yourself. Don’t skimp — be a good boss to yourself. Think of the time you’ve invested perfecting a skill or technique! Don’t know where to start? How much would a skilled worker get paid per hour? A web search can help you figure this out.

Maybe you don’t sell your work in brick-and-mortar stores, so you might be considering selling your work on Etsy at the wholesale price. Not so fast! If you do this, you’ll most likely be undervaluing your work and  you won’t give yourself room to grow and offer wholesale work in the future. Perhaps you have a buyer who wants to purchase a large volume from you, such as gifts for wedding guests. They’ll surely want a discount, right? Or, if it’s the end of the season, what are you going to do with all those scarves? You want to be able to put them on sale for 30-50% off with no worries.

This formula doesn’t really get into the nitty gritty of running a business, but it’s a good place to start.  I suggest hiring an accountant who specializes in small businesses to help you keep track of all your overhead expenses.

One last thing you should think about — what do you want to invest back into your business? You want to keep growing, right? Quit your day job one day? What if your sewing machine breaks beyond repair and you need a new one — a small business nest egg would come in handy, no?

It’s Always Worth It 2 – Dark Neon Pink by lisacongdon

How to Compete

Have you recalculated your prices and now have some self-induced sticker shock? You may have been trying to compete with mass-produced goods, or pricing your work at an amount that you could afford. Remember that handmade items have more value, and perhaps you should price for folks who have more disposable income than yourself. You are not always your target market. Your buyer is willing to pay more for something that comes straight from the hands of an artist. Price for them, not for everyone.

So how do you compete, or market your work to to the right buyer? Don’t be bashful. Point out right in that item description why your work is valuable. Give your buyers a good idea of the techniques you have mastered, offer an insight into your creative process or just let them know what makes that item unique (and how owning that item makes them unique, too).  Remember to make your mystery and sell your story.

Giftagon Handmade Gift Box by giftagon

Pricing Gifts

Sometimes I find myself contemplating an item as a gift, but it’s priced much lower than what I want to spend on that person, so I go hunting for something more expensive. Consider that your buyers are on the hunt for the right gift, not only now with the holidays just around the corner, but all year round. Who are they buying for and what price point are they aiming at? Would your work make the perfect wedding gift for a close friend? Would that item be $25 or $50? This works both ways — if you’re currently selling an item for $52, you might want to consider knocking off a few bucks if it means getting into the carts of buyers looking for gifts under $50.

Sell Less, Make More

I’ll let you in on a little secret. I nearly doubled the price on a popular ring in my Etsy shop. I did this over the course of six months because I couldn’t keep up with the demand. Did I sell less of this item? Yes. But I spent less time laboring at my workbench and made the same, if not more, profit. If you can’t keep up with demand that might mean you’re undervaluing yourself. Sometimes we are so focused on number of sales (I’m guilty of this, too) that we forget about maximizing our profits and valuing our time. I found that my design became a real treasure to those who were purchasing it. In fact, my buyers were now investing in the ring as an engagement ring — giving it the value and meaning it always deserved.

Inspire me – a color linocut by Mariann Johansen-Ellis by artcanbefun

Give Your Voice Value

One very important element we often forget to factor into our prices is our unique point-of-view as artists, creators, designers or knowledgeable collectors. Why wouldn’t our buyers be willing to pay a little extra to own something special? Something we’ve been pondering and perfecting for weeks, months, years or decades. Your incomparable voice is the culmination of your creative life: your education, research, travel, dreams, personal experiences. This is valuable, so give it value.

Etsy Success Holiday Boot Camp | The Art of Pricing | Sign up for Etsy Success Emails

767 comments

  • maggiesraggedyinn

    maggiesraggedyinn said 8 years ago

    Very wise advice... I have to do my homework!!!!

  • shannondzikas

    shannondzikas said 8 years ago

    Thanks, even in my fashion marketing class this isn't something that is taught. Let me get out my calculator...or just my cool calculator necklace!

  • BululuStudio

    BululuStudio said 8 years ago

    ooh I love the formula. Thank you so much Danielle ;D

  • jorgensenstudio

    jorgensenstudio said 8 years ago

    Yes, always make sure you have money to reinvest not only to grow but to try new items & lines in your shop.

  • katrinshine

    katrinshine said 8 years ago

    Thank you for article! I think I have good prices. I also always try to make better photos and expand assortment. Today I listed my first bobby pin)

  • jammerjewelry

    jammerjewelry said 8 years ago

    Very informative article on the pricing of items. Thanks so much for the help!

  • SimpleJoysPaperie

    SimpleJoysPaperie said 8 years ago

    Great tips Danielle! When you do a more detailed pricing formula, don't forget your overhead expenses, too! :)

  • ADoseOfAlchemy

    ADoseOfAlchemy said 8 years ago

    Excellent article and very much appreciated. Thank you, Danielle!

  • ravensrealm

    ravensrealm said 8 years ago

    Great advice. I know I cannot pay myself for what I make at my day job, but counting the hours spent purchasing supplies is really important. Just because its fun doesn't mean I shouldn't get paid for it! Thanks Danielle!

  • AZCreativeStudio

    AZCreativeStudio said 8 years ago

    Great tips! Thank you!

  • NaturalAmber

    NaturalAmber said 8 years ago

    Thank you advice and wonderful article!

  • BelieveJewelrySupply

    BelieveJewelrySupply said 8 years ago

    I like your article. However, I could never use that formula for pricing my earrings and necklaces. I would never sell any, they would be too expensive. But, the formula is probably good for bigger ticket items like art and furniture.

  • joannamorgandesigns

    joannamorgandesigns said 8 years ago

    Thank you for this article! We all have to remember it is business we're in, and not in competition of "who can price it lower" to the point of practically giving it away...

  • Ryanplz

    Ryanplz said 8 years ago

    such a great article. i've been dealing with pricing for a long time now, and it's hard to give yourself a good profit from the hard work you've put in while still making sales. thanks for the post.

  • erinelizabeth

    erinelizabeth said 8 years ago

    These are some very good points, great food for thought! Thank you Danielle!

  • lovelygifts

    lovelygifts said 8 years ago

    Thank's for the info. This is really food for thought.

  • amberike

    amberike said 8 years ago

    Awesome article. I am looking into revamping my prices as well!

  • BreatheCouture

    BreatheCouture said 8 years ago

    Great information and tips! I think it's important to give value to our customers, but to also remember to value our work (time spent making them, cost of supplies, etc) :)

  • andrea0503

    andrea0503 said 8 years ago

    Great advice!

  • Creations2Glory

    Creations2Glory said 8 years ago

    Good food for thought! Im calling my accountant Its crazy how much I was willing to sell my trade and time for when I first begun. Realizing your worth is essential in growing a business.Thanks for putting it so eliquently. Tiffany C2G

  • LCVintageJewelry

    LCVintageJewelry said 8 years ago

    Great post! Thanks for the tips. I was thinking of revamping my prices and this is a good start.

  • ispywithmycraftyeyes

    ispywithmycraftyeyes said 8 years ago

    Awesome advice and on time too. I have been mulling about my prices the last few days.

  • choisette

    choisette said 8 years ago

    do your research, and price accordingly. and be patient. if your products are well-crafted, nicely photographed, and fairly priced, the buyers will come. eventually.

  • ArtZBagZ

    ArtZBagZ said 8 years ago

    Danielle ~ I think I've never really wanted to know how much time and effort I put into my work. One year I kept track of every penny I spent and was so shocked I haven't done it since. This is called Head-in-the-Sand approach to business. I have sold many bags and pouches at craft gatherings and there are women who eagerly buy them as I'm putting them out for display, and others who quibble about the price of a handpainted linen one-of-a kind beautifully crafted bag. I've come to think that I have to get a little real and start paying myself more than $6.00 an hour. . .or less. . . Thank you for your bootcamp. I'm printing this article and posting it on my studio wall! ooxx, sharon

  • mybestsundaydress

    mybestsundaydress said 8 years ago

    Thank you so much, I finally know how to calculate wholesale prices!

  • SameheartDesigns

    SameheartDesigns said 8 years ago

    It is really somehow surprising that so many of us struggle with the same topics in pricing our work. It really helps to read everyone's posts and then reevaluate my attitude towards pricing and my work. Thanks to all that shared their thoughts and thanks for a sympathetic and insightful article.

  • CustomDogBandanas

    CustomDogBandanas said 8 years ago

    What a great article and SO true!

  • Colettesboutique

    Colettesboutique said 8 years ago

    So many good points. Pricing can seem so tought, especially with handmade items.

  • KISDesigns

    KISDesigns said 8 years ago

    Great advice. This is something I have been struggling with for some time. Thank you for such a timely and informative article.

  • Talula

    Talula said 8 years ago

    Very interesting... It is so difficult to put a price on the time spent finding my components, and the fact that they are in most cases, one of a kind vintage or antique pieces... I cringe when I think how low my prices were when I first began selling on Etsy...

  • CassiasGarden

    CassiasGarden said 8 years ago

    Your articles are the best, danielle! If there is anything at all that I read, it it written by you! Thank you for a great topic and an infomative post, as always. XO!!!!

  • thecraftpantry

    thecraftpantry said 8 years ago

    Wonderful article! "Don't skimp — be a good boss to yourself." - Love this!

  • Modulation

    Modulation said 8 years ago

    Thanks for the info, as a new seller on etsy, this gives me some great ideas about pricing, and some more confidence. I can hear the words "I told you so" coming from my boyfriend's mouth as I type this. Lol

  • idlehandsdesigns

    idlehandsdesigns said 8 years ago

    Thanks for that Daniel! I needed to hear that I am valuable today❥ Pricing is really tough! It's really important to never sell yourself short!

  • DecoFamara

    DecoFamara said 8 years ago

    Great advice and formula. Thank you.

  • BirdsChasingBugs

    BirdsChasingBugs said 8 years ago

    Thank you so much for this boost! We sellers deserve to be paid well for the work we're doing. I know everyone out there works so hard!

  • bayousalvage

    bayousalvage said 8 years ago

    oh you are so right!

  • passionatelycreated

    passionatelycreated said 8 years ago

    Great article. It's about time someone wrote about this. Unfortunately, I'm not sure it works. I have been using that formula for my jewelry and felt confident about this decision, but not having made any online sales yet, I have started to doubt and now am forcing myself to lower my prices when I am a firm believer of your formula! What to do...?!

  • ArcSquare

    ArcSquare said 8 years ago

    Danielle, thank you very much for this! I think I must calculate my prices once more :). xo

  • KettleConfections

    KettleConfections said 8 years ago

    Great tips, especially on the part where you should always emphasize the value of the product. If you're item is very time consuming to make or labor intensive, it's always a good idea to describe the process of what you make in your descriptions so the buyer has a better understanding of what they are paying for. Sharp photos that highlight the detailed craftsmanship that go into your work are also very helpful.

  • chia83

    chia83 said 8 years ago

    Great article. It's just hard to really calculate actual labor cost for my items. I sure as heck can't charge what I earn in my regular day job. That would bump up the price of my $15 paper house gift box to triple and really...is that right? I think that formula only works for certain item venues.

  • athenadelarosa

    athenadelarosa said 8 years ago

    Great points, thank you!

  • corrnucopia

    corrnucopia said 8 years ago

    Great advice! Thanks so much for the insight.

  • rebeccasanchez

    rebeccasanchez said 8 years ago

    Valid points! Thank you!!

  • SandBagsDesigns

    SandBagsDesigns said 8 years ago

    Thanks for this topic! All great things to consider and decide on....... :)

  • ikabags

    ikabags said 8 years ago

    Great tips Danielle! Thanks !

  • baconsquarefarm

    baconsquarefarm said 8 years ago

    You hit the nail on the head we under value ourselves, thanks for your easy to understand pricing guide for dummy's like myself.

  • ikabags

    ikabags said 8 years ago

    "" One last thing you should think about — what do you want to invest back into your business? You want to keep growing, right? Quit your day job one day? What if your sewing machine breaks beyond repair and you need a new one — a small business nest egg would come in handy, no? ""Danielle And I bought my new sewing machine (7.one )for my handmade work ,we are artisan , we cant stop it for new ideas and quality http://www.etsy.com/storque/spotlight/quit-your-day-job-ikabags-10900/?ref=fp_blog_title

  • babyjives

    babyjives said 8 years ago

    Great advice - I have been thinking this over a lot lately as my business is growing. Your own experience about hiking up the price of your most popular item over 6 months was really great - I have been doing that slowly as I become more mired in orders. It's always hard to pay yourself enough, but gosh darn it I am going to do it!

  • feelingartsy

    feelingartsy said 8 years ago

    Good tips. Love the formula, but it makes me realize that my items are way too cheap, but would I really be able to sell them for twice the price?!!! hmmm.... going to think about it. Thanks!

  • simplyworn

    simplyworn said 8 years ago

    sound, honest and most important info!!! thank you.

  • lolos

    lolos said 8 years ago

    Fantastic article Danielle! Thank you so much for the tips :-)) Lolo :-)

  • kmaskreations

    kmaskreations said 8 years ago

    I've not been selling long on etsy, but was amazed at extremely low prices for items that I knew should be listed for more. Time is money and I'm doing this to build a business. I will create the very best for my buyers, but I cannot afford to shortchange myself.

  • ZhongFuJewelryDesign

    ZhongFuJewelryDesign said 8 years ago

    Good, helpful points!

  • DreamsandJewelry

    DreamsandJewelry said 8 years ago

    Great tips :)

  • chapulin

    chapulin said 8 years ago

    Wonderful article! Thank you Danielle!

  • StelmaDesigns

    StelmaDesigns said 8 years ago

    I can't tell you how valuable your post is. Had I not priced my items correctly I would not have had the extra one to buy a new camera last year when my old one died. Also, I too have passed on certain gifts and gone for the more expensive similar item, so I do know that low price in some cases can effect buying to the benefit of the higher priced sale.

  • weatheredsilo

    weatheredsilo said 8 years ago

    Wow, this couldn't have come at a better time. I'm opening my Etsy shop this coming Monday and I'm fine-tuning my pricing as we speak. Time is so valuable to me because I am a mom first and I want to be sure that I'm compensated fairly for the time I must be away from my family...or lost sleep ;-)! Thankfully I have an extremely supportive husband and daughters who are encouraging me throughout this adventure. As always, great advice Danielle! Cheers, Mandy

  • RichardMartinPottery

    RichardMartinPottery said 8 years ago

    Sometimes it's too easy to under value myself and feel undeserving when potential customers have a much higher perspective of what I am making.

  • EssemDesign

    EssemDesign said 8 years ago

    Great food for thought!!

  • zelmarose

    zelmarose said 8 years ago

    Such great advice. Just the encouragement I needed to hear. Thanks for the great information.

  • elinadesigns

    elinadesigns said 8 years ago

    I have a problem with this formula. It takes me about 8hrs to knit a pair of fingerless gloves. If I value my labour at $10/hour (slightly over minimum wage here in BC) and my materials cost $4, my wholesale price should be (8x$10 + $4)x2 = $168. That would make the retail price $336. At the moment I'm selling my gloves with a little more than 10% of that calculated retail price. Not a way to grow the business... But I'm not sure what else to do.

  • halpal28

    halpal28 said 8 years ago

    i think this is great advice for most etsians, but as a knitter, that would make my pieces over $100 each-- and that's paying myself minimum wage.

  • rozzie

    rozzie said 8 years ago

    Hard to price yourself fairly when you're a category with thousands and thousands of choices. (jewelry)

  • RomanceCatsAndWhimsy

    RomanceCatsAndWhimsy said 8 years ago

    That was very informative and a good reminder to value our time and not just materials. Thank you!!

  • jnorvelle

    jnorvelle said 8 years ago

    thank you! Much needed reminder!

  • Minxshop

    Minxshop said 8 years ago

    There is no way I could double my prices.... I think I am doing well as it is. I can't sell wholesale, but I think I am okay doing that. My market is super difficult because clothing IS so cheap. My items are already expensive for my market.... :/ I've raised prices a bit, but only by $10-$20 not double....

  • roundabout1

    roundabout1 said 8 years ago

    Thank you, thank you, thank you! I'm always afraid to price my items & you made me realize I'm not really being a great boss to myself.

  • designlab443

    designlab443 said 8 years ago

    Get advice! Pricing is the hardest thing for me to figure out! I have had several people contact me about wholesale and I can't go any lower so I had to pass. I guess I need to raise my prices a bit?

  • vivikas

    vivikas said 8 years ago

    Thanks for the article, very useful!

  • BlossomandTwig

    BlossomandTwig said 8 years ago

    great food for thought - thanks!

  • coolranchstudio

    coolranchstudio said 8 years ago

    thank you danielle - your tips are always inspiring! :)

  • TulleMeAboutIt

    TulleMeAboutIt said 8 years ago

    Thanks so much for this post! Very helpful, indeed! :-)

  • CheersToJuly

    CheersToJuly said 8 years ago

    Great article - thanks so much :)

  • aTempestinaTeapot

    aTempestinaTeapot said 8 years ago

    Its so easy to forget the time spent looking for the perfect materials and to keep track of how much gets invested into those materials. The part about considering your Own income when pricing made so much sense! Great article & very helpful info :) Thanks!

  • xxxRedStitcHxxx

    xxxRedStitcHxxx said 8 years ago

    GREAT advice!, thanks a lot!

  • dkalvarez

    dkalvarez said 8 years ago

    What a great formula for pricing your items. I have worked in retail and have seen items such as jackets, hats, shoes and housewares marked up as much as 3-4 times the amount it cost the store. So yes, when you evaulate do think about the time it has taken you to perfect your craft and even the time consuming task of packaging. Thank you for this wonderful article.

  • InnerEarthJewelry

    InnerEarthJewelry said 8 years ago

    Just purchased any item that was shown in your article and I wasn't even thinking about shopping, just reading your article, the power of blogs, forums, on line, etc.

  • quillynilly

    quillynilly said 8 years ago

    I tried this formula out with my paper quilled snowflakes which are priced at $12.50. If I followed the formula giving myself $15 an hour plus supplies they would cost $28.50 each. They are gorgeous snowflake ornaments but that price just seems way too steep, so while I like the formula and wish I could apply it, it just doesn't work for all items. I'm currently in the process of redefining my shop so maybe in the future I will have some larger items that can take advantage of this formula, good goal for 2011.

  • manvsgeorge

    manvsgeorge said 8 years ago

    Excellent perspectives -- thank you for sharing your experiences, daniellexo and commenters. I just posted a new topic in the Ideas forum that I'd love your thoughts on. It's about the concept of "self-determined pricing" -- or, a way for shoppers to (optionally) pay more than the listed price for an item if they are particularly moved to do so. Read more here: http://www.etsy.com/forums_thread.php?thread_id=6667279

  • LittleWrenPottery

    LittleWrenPottery said 8 years ago

    Excellent article, I still struggle with pricing but I definitely agree with putting prices up on items that are popular sellers.

  • SASessories

    SASessories said 8 years ago

    i have been thinking ALOT about this lately!! struggling to keep up on the business all by myself & needing help, coming back i upped my prices to include labor.... well (and thanx to the economy!), i'm not quite there yet!!! so prices are going back down and i'm going to turn back into a one-human-sweat-shop..... goodie!

  • DancingMooney

    DancingMooney said 8 years ago

    Really smart piece, thank you for the reminder! ♥

  • FeltShmelt

    FeltShmelt said 8 years ago

    Excellent post, much needed, I have been pondering over pricing and this is very helpful! Thank you!!

  • MindyG

    MindyG said 8 years ago

    Enjoyed reading this article! Thank you!!!

  • TheWinglessBird

    TheWinglessBird said 8 years ago

    There is always room for improvement, & being a new boutique, I am always looking for ways to become a better business.

  • TheWinglessBird

    TheWinglessBird said 8 years ago

    Thank you! x

  • myvintagecrush

    myvintagecrush said 8 years ago

    All so true. I'v been tweeking my shop daily...trying to find the sweet spot :)

  • pulpsushi

    pulpsushi said 8 years ago

    This is great, thanks Danielle! After all this time I continue to struggle with my prices and figuring out an hourly wage for what I do. But as Rozzie said, the story is a little different when you do jewelry.

  • bhangtiez

    bhangtiez said 8 years ago

    Well said....thank you!

  • charcoaldesigns

    charcoaldesigns said 8 years ago

    Great article! Now I'm curious about that ring you mentioned...hmmm.

  • IdahoHempWorks

    IdahoHempWorks said 8 years ago

    I have a question. I would really like to buy a Showcase spot or 2 but it seams that everything is gone in under 3 minutes!? Any suggestions???

  • vitamini

    vitamini said 8 years ago

    Great article! I think I've been doing better with my pricing since I really decided to take my business seriously a year ago. It's still good to have a reminder every now and then to not price too low, but it can be scary to bump prices up! I remind myself that the items I make are special and they can't be found just anywhere. That makes it a little easier. :)

  • bylynnkrestel

    bylynnkrestel said 8 years ago

    so good! as the price of silver has been going up - i need to re-evaluate that too... thanks for the reminders, danielle!

  • BellaPuzzles

    BellaPuzzles said 8 years ago

    This is exactly the advice my father gave me when I was starting my shop. It has stood the test of time. Business is getting a little TOO good...it might be time for me to use that Sell Less, Make More idea. I have Daniellexo's permission!

  • NoKitschProject

    NoKitschProject said 8 years ago

    Well, if I used the pricing formula, I would never sell anything. My items are terribly time consuming. What to do with that problem, I wonder?

  • thehouseofhemp

    thehouseofhemp said 8 years ago

    this article is bang on - thanks! :)

  • nathaliedembele

    nathaliedembele said 8 years ago

    Thanks for the valuable advice!

  • KrystalCirca1984

    KrystalCirca1984 said 8 years ago

    Great advice, thanks!

  • teepetals

    teepetals said 8 years ago

    thanks for this info! very informative!

  • accentonvintage

    accentonvintage said 8 years ago

    Thanks for the very good advice. Etsy is so helpful in evaluating and rethinking our shops.

  • OhDearWatson

    OhDearWatson said 8 years ago

    Thanks Danielle - Pricing is sometimes difficult.

  • JazzGreen

    JazzGreen said 8 years ago

    timely and very helpful article, thank you...

  • sewnewthings

    sewnewthings said 8 years ago

    Don't forget currency exchange issues, if you are not living in the USA

  • StayCalmCupcake

    StayCalmCupcake said 8 years ago

    Thanks1 Some great things to thnk about!

  • laceydu

    laceydu said 8 years ago

    Whew! Thank you very much for this article. I wrote the formula in my sketchbook in INK. Love it. Calculating labor for myself is hard, but this article makes me realize that I MUST value my time, I spend my entire day thinking of my next piece, that is surely worth something!

  • WrensandRoses

    WrensandRoses said 8 years ago

    When I worked as a buyer for a vintage clothing shop, the owner taught me that anything sold within a day or two of it hitting the floor was underpriced. I recently had my first sale and it was an item that I had listed only hours before. I was so happy to make the sale I almost overlooked the fact that I probably priced it too low. I'm still happy that I got the sale and pleased my customer but I learned a lesson.

  • exclusivelyhannah

    exclusivelyhannah said 8 years ago

    good advice, it's just so hard pricing for someone that actually has money, sometimes its discouraging when no one buys something you love and put time and effort into.

  • katestriepenjewelry

    katestriepenjewelry said 8 years ago

    I don't know if this helps anyone but the formulas I read don't double the labor cost. They do:- Materials x2 + Labor + 10% Overheads (wholesale) Materials x4 + Labor + 10% Overheads (retail) Don't say you don't have Overheads! Packaging, Etsy & Paypal fees, tool maintenance etc are all overheads. Maybe this will help some of those who have lots of Labor hours...

  • GoodNorth

    GoodNorth said 8 years ago

    That was so good. Thanks. The business side doesn't come easy to me but I am really having a good time learning about it.

  • VeloNoir

    VeloNoir said 8 years ago

    I probably have read the "Art of Pricing" over and over again...Pricing is still very difficult for me. I get sticker shock when I apply the formula mentioned but it makes sense when I think about the time I spent working on the piece, teaching myself new techniques, not to mention searching for the best components I could afford.

  • whphotography

    whphotography said 8 years ago

    This is incredibly helpful and I'm sure I'm not the only one here realizing that artists often trade respect and value for a sale. This is so not okay. My time is important and very valuable. I just raised my shop prices and realize through this piece that I probably did not raise them enough to balance the care, time and energy that goes into my work. Thank you for always being supportive of the bottom line being: value yourself and create quality goods and the right customers will find you. Speaking of value ... I'm having a giveaway at my blog for a fine art giclee print. I'd love for any Etsian to drop by and enter! http://walterhelenaphotography.blogspot.com/2010/10/whp-giveaway-seven-of-twelve-olive.html xo, WHP

  • crumblescookies

    crumblescookies said 8 years ago

    Thank You Danielle for such great advice and reminders!

  • crumblescookies

    crumblescookies said 8 years ago

    Thank You Danielle for such great advice and reminders!

  • BrainofJen

    BrainofJen said 8 years ago

    Great advice! Another cost sellers forget to account for when calculating their prices is their tools & shop, another important expense to remember. I bought Chris Parry's pricing spreadsheet here on etsy, totally worth it! I still can't usually bring myself to price my items at retail though, even though I know I should (& I'm paying myself less than minimum wage here in Ontario), I usually wind up somewhere in between wholesale & retail.

  • atthestudiodoor

    atthestudiodoor said 8 years ago

    I always shake my head at items tht are priced so low that I know the maker is either not making any money or possibly not even breaking even! None of us should be competing with Wal-Mart prices - disposable items that break easily, I can't image that is anyone's goal is for their shop or the items they make. As a new seller & emerging artist I've tried to price my items according to what I see in the market but also with an eye towards where I'd like my pricing to be once I'm established.

  • DreamsCorner

    DreamsCorner said 8 years ago

    Yes, of course, many fine words. But the problem is another ... Many shops here can not to start. Personally it is a year that I spend half my life to pursue my store here on Etsy (following the advice that you give, trying to make nice pictures, look at what the trends are, trying to understand what people like and what is sold, advertising me as much as possible about social networks, blogs, treasury, forums, etc. ...) but everything is useless. After more than a year (while trying different items and categories) my store is only 13 sales, very few visits, and almost no response. My problem is not giving value to my time and my creativity, my problem is being able to sell something (and I do not think my things are so horrible ... they are on par with many others that I see sold each day). Who knows ... Perhaps there are artists first and second category. If yes ... I am part of the second. Happy sales to all!

  • autumnraincreations

    autumnraincreations said 8 years ago

    Thank you, great post. Something definitely to ponder.

  • LeafAndTendril

    LeafAndTendril said 8 years ago

    Much wisdom here.

  • ModernShop

    ModernShop said 8 years ago

    Great advice, thank you!

  • luxe

    luxe said 8 years ago

    super article!

  • VeloNoir

    VeloNoir said 8 years ago

    P.S. Do you have any advice on pricing photographic prints? I am still a bit confused about this--anything helps:)

  • EverybodyElse

    EverybodyElse said 8 years ago

    Oh my, I know I'm guilty of undervaluing my work. I sell so cheap on etsy, but at my day job a customer recently paid $200+ for custom illustrations very similar to what I sell in my shop.

  • Waterrose

    Waterrose said 8 years ago

    Thanks for all of the tips D. Think I need to rewrite some of the shop information.

  • AnnTig

    AnnTig said 8 years ago

    Thanks for the info!

  • KnockKnocking

    KnockKnocking said 8 years ago

    I appreciate the formula and agree that it is wisdom to not undervalue your work, and in doing so, not undervalue everyone else along with it. Excellent article full of really useful advice.

  • KathyMortonStanion

    KathyMortonStanion said 8 years ago

    Thank you!

  • SwellCrafts

    SwellCrafts said 8 years ago

    Great article! Thank you!

  • BikeCozy

    BikeCozy said 8 years ago

    What a great article. I usually don't comment, but this article is just what I needed to hear as I am struggling with the fact that my pricing is too low. (I've been pricing for the me's, instead of my target market) Thank you Danielle

  • happyfoxstudio

    happyfoxstudio said 8 years ago

    Danielle, thank you so much for this eye opening article. I've never really thought about pricing this in depth, and I will start doing this immediately! An interesting catch for me though is how to enter into the market at these real prices, rather than raising prices once you have a solid spot in the market. Thanks again!

  • VerreEncore

    VerreEncore said 8 years ago

    thanks, danielle! sometimes i have to hear it from others to believe it. pricing is always so hard!

  • schnitzelshop

    schnitzelshop said 8 years ago

    Perfect timing for this article! My Mom and I were just discussing what kind of price point we need to be at.

  • tinyearsjewelry

    tinyearsjewelry said 8 years ago

    I know I am just like everyone else out there, and price based on what I think the "market will bare". My items are unique in that you can't get the raw materials from a store or at wholesale prices... I have to search out the vintage and antique tins, which obviously takes time. There is also the idea that what we all create is art... well how much do you pay for art? I mean, would you pay over $100 for a vintage inspired cuff made from old antique tins? http://tinyearsjewelry.etsy.com thanks... Casey @ Tin Years

  • craftypagan

    craftypagan said 8 years ago

    Excellent article!

  • meaicp

    meaicp said 8 years ago

    Thanks so much - this is an issue that I , as a newcomer to Etsy, have struggled with. I appreciate articles like this.

  • crookedsister

    crookedsister said 8 years ago

    Great article. Covers alot of point I may not have thought of before. I've also enjoyed reading everyone's comments and seeing their perspectives on increasing prices. Very informative.

  • LittleSnowflakes

    LittleSnowflakes said 8 years ago

    Thank you so much for this article! I have to say that watching folks under price their work is my biggest frustration. We are NOT Walmart... we are MUCH better! :-)

  • grammashandmade

    grammashandmade said 8 years ago

    I am VERY guilty of under pricing. I do tend to look at what I would be willing to pay for something. I am about to list hand knit capes for little girls and am struggling with the price.

  • solarwood7222

    solarwood7222 said 8 years ago

    Great article! I've also found that by raising prices because demand was so high, we received fewer sales, but are making a better hourly wage now and a better profit. Thank you Danielle!

  • debs102

    debs102 said 8 years ago

    I think a lot of knitters have said that this formula hadn't worked for them, I can see why as this kind of labour intensive work means you would price yourself out of the market. I have designed items that can be made quickly (not a bad thing - I still make them to a high standard) like mittens and tea cosies that means my labour is less per item so I can keep myself competitive, which is hard enough anyway with higher postage costs when posting internationally, but I've also factored this in and make items that are light to post. It's about thinking things through a lot of the time. I also have a full time job so I take that into account and price things so that I'm not only working, sleeping and knitting every day! Debs

  • NatanyaElka

    NatanyaElka said 8 years ago

    This is a fantastic article, thanks so much! I sometimes forget that what I make is truly unusual, and I undervalue my trade. After all, this IS my new day job, and mama needs a new kiln! Thanks again ;0)

  • talesofcamelot

    talesofcamelot said 8 years ago

    I had the same thoughts before reading this post. I started reevaluating my prices. Many I have lowered after increasing them (they are still higher than the origional price) and some I have increased a small amount.Pricing can be a challenge. But when you get it right and make a sale you are also happy finding the right formula for pricing your items. Some day I will have it all right.

  • laralewis

    laralewis said 8 years ago

    This is such a fabulous article!!!!

  • LezliLuv

    LezliLuv said 8 years ago

    Thank you for the advice as I have had friends tell me that I am pricing too low. But I do agree with katestriepenjewelry said about the formulas she has read. I'm not sure if labor should be doubled and I definitely agree that overhead costs need to be included. I also sell on ebay and always include fees in my starting price for my auctions. You always need to be able to cover your costs.

  • MargauxStudio

    MargauxStudio said 8 years ago

    Thanks for all the food for thought! The two main things I also look at when pricing my own items is competiveness and I ask myself what would I be willing to pay for this item? I prefer putting something a bit lower to make it irresistable, and not have something sit around too long in my gallery... Thanks again for the tips

  • lepetitruban

    lepetitruban said 8 years ago

    Great advise, thank you!

  • SdVDesigns

    SdVDesigns said 8 years ago

    This is great advice; I notice some prices in people's shops are in my opinion way to low. So helpful!

  • AuntieDawn

    AuntieDawn said 8 years ago

    I love reading articles like this! Thanks!!

  • TedraDesigns

    TedraDesigns said 8 years ago

    THANK YOU! THANK YOU! THANK YOU! I have seen so many extremely talented artists on Etsy undervalue their work - it is sad really. So often, I think "HOW & WHY"...can they really LOVE their craft so much that they are willing to practically give it away? Call me crazy, but I wish more artists would see value to what they create. On a personal note - I wish I did not feel the need lower my value based on other Etsy items similar to mine. I was hoping Etsy would be more of an artist community and less of an artist competition. However, I think we would all win if we came together and refused to undersell ourselves.

  • AngelaIngram

    AngelaIngram said 8 years ago

    Best advice I have seen in a long time! Pottery is especially hard to price with the cost of supplies that many customers are not familiar with. Then there is the constant attitude that if it is functional it should be cheaper, less like a piece of artwork. Living in a very rural area has hindered my sales, making etsy very valuable to me! I will be going straight to my shop to re-evaluate my prices! Thank you so much!

  • PattyBzz

    PattyBzz said 8 years ago

    I was just relooking at my prices & am soo glad you wrote this article. It still seems like my prices would be awfully high if I followed the formula. . . maybe I need to baby step into it. It gets frustrating when you look to see what others are selling comparable items for & wonder how they can sell theirs at such a low price. I especially hate when someone wants to buy a large quantity of an item, and then turns around & ask you to discount it so dramatically. They want the uniqueness of your gift, but don't want to pay you for your time & ability. I think my new motto is going to be what LittleSnowflakes said above "We are NOT Walmart. . .we are MUCH better!! Love it!

  • misshp88

    misshp88 said 8 years ago

    Wonderful article, I am starting to get addicted to these things! And if they help my business I am all for it!

  • VanessaHM

    VanessaHM said 8 years ago

    One of my goals in designing my princess dresses was to make quality costumes that parents could afford. I've always known my prices are too low, but I've wanted to make sure that every little girl can afford to feel like a princess. I've been trying to think of other products to add to my shop that may be priced lower overall but are faster to make, so that the profit from those items can supplement the dresses.

  • Creativewithclay

    Creativewithclay said 8 years ago

    All great tips. I like the theory behind increasing prices of products for which you cannot keep up with in production. Like you said, it means they are not correctly priced and after a price increase, it is less labor involved and profits are more.

  • 4GetMeNotTreasures

    4GetMeNotTreasures said 8 years ago

    Great article Danielle! Thanks so much!

  • DeezignerBliss

    DeezignerBliss said 8 years ago

    Thank you for the great advice! It really made me rethink pricing!

  • JaminaRose

    JaminaRose said 8 years ago

    I find this issue the hardest of all...sometimes I'm ashamed to say I haven't taken a proper currency check, with the result I've lost on a few sales and made little on the others, I guess I find it hard talking money...I am Irish of the older generation and we tend to be embarrassed talking money I think...no excuse I know

  • isewcute

    isewcute said 8 years ago

    Fantastic article! I've been re-evaluating things & now offer a group of necklaces for a lower price than the same number of necklaces separately, because I can work the pieces together.. that means less time spent dragging out supplies, time creating, & cleanup. :o)

  • devarrs

    devarrs said 8 years ago

    I agree, don't short yourself. Your time is valuable and so is your creativity. You have value so charge for it confidently.

  • kimberleeannkreation

    kimberleeannkreation said 8 years ago

    I am already looking at some price adjustments to start in 2011, although I am VERY thankful for the two sales I have had in my brief time as an Etsian! What I find extremely difficult to price are shipping costs, but I am learning. I have the greatest boot camp buddy ever! I have learned a lot from her and from these articles. I am going to miss Boot Camp when it is finished!!

  • craftsbykash

    craftsbykash said 8 years ago

    interesting article. I do struggle with pricing. But I find it hard to pay myself $10.00 an hour , which was what my sister had suggested. the Question of how much is time time worth is always one I don't get.

  • alyson1234

    alyson1234 said 8 years ago

    Very important info to follow whether you're a crafter or consider yourself an artist. Either one is hard work!

  • Jewelrybynala

    Jewelrybynala said 8 years ago

    It's good that you're urging us to look at so many different aspects of our businesses, Danielle, something I know I would have put off myself ... the pricing thing is especially difficult for me. Funny how pricing my own items can be such an arduous task for me, yet I often feel I can take one look at someone else's work and know what they could get for their creations ...

  • jillhannah

    jillhannah said 8 years ago

    NO NO NO NO NO NO NO NO NO. Love you, Danielle, but formula BAD for calculating pricing. Formula is for calculating your true COST. If I make felted prunes and I buy my Wool Brand Wool for $9 at Wooly's Wool Shop instead of $5 next door at Sheepy's Wool Shack, your formula says my final price should be $8 higher. Why would my customers pay an extra $8 for the exact same item because I didn't shop around? Also, based on this formula, if I've been making felted prunes for a month and they take me 2 hours a prune and are mediocre, I should charge more than when I've been making them for a year and they take me only 20 minutes a prune but are much better because I have improved at making them. COVER your costs. Then think about what a customer would be willing to pay for the final item you have sitting in front of you. That's the price that matters. Find your customer. I've blogged about this a lot because it comes up a lot. http://jillhannah.blogspot.com/2010/04/econ-203-everything-isnt-about-you-ok.html http://jillhannah.blogspot.com/2010/08/problem-with-pricing-formulas-econ-001.html http://jillhannah.blogspot.com/2008/11/pricing-superduper-simplified.html

  • potterstouchofglaze

    potterstouchofglaze said 8 years ago

    Thank you! I will try some of these ideas. It's very hard to think of ways to wrap ceramics before shipping them though because I don't put them into a box before I ship them in the box for shipping I just wrap them in bubble wrap them put them in popcorn because if I used boxes to put them in first the shipping would cost even more. Any ideas are welcome!!

  • SageOfTheTrades

    SageOfTheTrades said 8 years ago

    I would have to disagree with the formula, only on the case that if I sold my projects at that projection I would never make a sale. Here is an example: I pay myself $10 an hour for my seamstress work. It costs me $2 to make a single bracer. 2+10=12*2=24 24*2=48 It would be hard enough trying to sell a single bracer for 24 in a whole sale setting, it would be impossible to sell a pair of bracers for $96 in a retail setting. I do have to work with the limitations of what people are willing to pay and what my competitors are selling for. Maybe some day when I have changed some of the ways I build my bracers I will up the price a little, but $15 a bracer right now is just fine. I do agree that some people under price there items and it is very hard to sell knowing that some one is out there under cutting themselves and all of their competitors but I also believe in over pricing and I think it can be as harmful, large corporate stores may be able to get away with over pricing to make up for the fact that their workers are paid nothing, but I make a good wage and I don't need to hide the true cost of my craft.

  • yw1911

    yw1911 said 8 years ago

    Such an interesting and useful tip! Thank you so much for sharing it. (^_^)

  • paperpiecesbyvicki

    paperpiecesbyvicki said 8 years ago

    I agree with everyone that it is very difficult to figure out prices. However, I'm not sure that I totally agree with you Danielle about how to figure out what to charge. I have found that most people are NOT willing to pay what I feel my talents and products are worht rather than the other way around :( The bottom line always appears to be the $$. I have sold some of my products at a small gift shop and the owner indicated to me that people would not pay more than $___ for my books. I feel that what I do, when you figure materials, shopping, talents,etc is worth a LOT more than I can sell them for. Therein lies the dilemna!! So, what I have learned is that my labor is not always going to be figured into the cost of an item, unless I don't want to create or sell what I make. Sad, but true! If anyone can dispute this, I am more than glad to hear other views!!!

  • bbags22

    bbags22 said 8 years ago

    Thank you thank you!! I need to hear this, along with all other etsians. We are worth more!! (we just may not be great at math or having great self esteem.)

  • MonniebeanFolkart

    MonniebeanFolkart said 8 years ago

    This post is very timely for me today-and I'm going to read all the comments. This is a very hard area for me to figure out...

  • QuvQiv

    QuvQiv said 8 years ago

    I agree with those who are saying this pricing formula is not feasible for some. I don't think anyone in their right mind would be willing to pay 150 dollars for a pair of crocheted fingerless gloves. Especially in our current economic state. I think you need to ensure that you're covering your costs, giving yourself a little bit for labor (minimum wage is probably too much if your item is labor-intensive), and consider what people are willing to pay. It is maybe helpful to look at what others are charging for similar items, and place yourself in the middle of the pack, so long as that doesn't mean you're giving your products away. If your item is truly unique and one-of-a-kind, then you can probably get away with using the formula Danielle gives here. But if you have competition, it doesn't seem like good business advice.

  • JacquelineJewelry

    JacquelineJewelry said 8 years ago

    I found I had to lower my labor costs from my original configuration and thereby lower my prices. As a new seller on Etsy I'm an unknown quantity and people aren't willing to pay brand name prices. I have found that a pricing calculation of materials times five results in a reasonable price for my work. I have some pieces that are high and some that are low, but it's all based on the materials cost.

  • lamixx

    lamixx said 8 years ago

    wonderful thank you

  • lilpeeperkeepers

    lilpeeperkeepers said 8 years ago

    While the formula is helpful, it often is not quite realistic! But seriously, if you are using good quality components for your product, you may just need to forego the opportunity to wholesale in order to make your products within the budget of the average customer. It is important to price within the range of others selling similar products, also, because products will most likely be compared. But, if you have something completely unique, the price can reflect that!

  • EvesLittleEarthlings

    EvesLittleEarthlings said 8 years ago

    I have raised my prices many times over the years when I felt an item was selling too quickly. The marketplace determines the price of all items. A formula is a good starting point, but there are so many individual circumstances that have to be measured that I wouldn't tie myself any formula.

  • ericawalker

    ericawalker said 8 years ago

    Some great info, thank you. I still struggle with pricing several years into it...

  • CricketCreekDesigns

    CricketCreekDesigns said 8 years ago

    Thank you for this wonderful advice! It's so true that sometimes we pass up buying something great because it has a low price tag.

  • pworiginals

    pworiginals said 8 years ago

    Yep, the formula won't work for those of us who spend 8 or more hours just making a single item, much less shopping for materials, etc. I just do what I'm comfortable with because I love what I do! Lots of good tips, tho!

  • artyscapes

    artyscapes said 8 years ago

    Great advice!

  • michcaso

    michcaso said 8 years ago

    I really had started to doubt my pricing because there is always someone who sells things cheaper than they should be or more expensive. I've had people comment about my prices at both ends of the spectrum, so that makes me think maybe I'm on target! Actually, it's all about finding the right buyer - one who values your work. Then, I say start where you think you should be on pricing. You can always adjust it if it's not working. And I agree that underselling yourself is not a good thing!

  • Mmim

    Mmim said 8 years ago

    Great article! Thank you for the tips. Although I don't think we ever get paid for the time we put into our craft. We do it cause we love it!:)

  • Katexpressions

    Katexpressions said 8 years ago

    Thank you Danielle for this article. I think this is one of the hardest areas to work on as an artist/designer. I enjoy the process! You can't put a price tag on that. :)

  • leapinggazelle

    leapinggazelle said 8 years ago

    Wonderful article, Danielle! Thank you :)

  • rayela

    rayela said 8 years ago

    I was happy to see you encourage people to look at retailing rather than wholesaling, Danielle. And, I agree with jillhannah in what she pointed out about skill and materials. Materials are a huge deal, which is one reason I like to work with recycled and found objects. Yes, they take some time, but even with that factored in, they are much cheaper than buying new materials to achieve similar end products (ex. specialty fabric vs thrift store fabric). And, skill is a huge factor. A beginner knitter may take three times as long to finish something as an expert knitter. In my opinion, if you can't get at least $15 an hour for the product you are making (including your other costs), it's not worth the effort. If there are a million other people making similar things, then look for a product that uses that same skill but translates it into something new and fresh. It all depends on whether the seller is in this as a business or a hobby. I have a friend who is a compulsive knitter and I have encouraged her to sell on Etsy, but she prefers to knit for charity. We each have to figure out our own niche and why we do what we do, but if what we make is supposed to support us, then we need to look at both price and at the actual item being made. I know that the jewelry category here is terribly competitive and with thousands of simple bead necklaces to choose from, the question becomes not so much price, but finding a twist to make it different from the others.

  • burlybunny

    burlybunny said 8 years ago

    very useful information but if i did this with my hand-knit blankets that take from 10-20 hrs to knit and the cost of the high end yarns i use i don't think i would sell a single one. especially when my competition is sooooo much lower. so i work for sweat shop wages and mostly just cover my cost of materials. it is depressing but i justify it by reminding myself how much i love making things. this is something i battle with all the time and it's even harder when you go to craft shows and you see people turn away when they see your pricing which is already way too low.

  • denmark55033

    denmark55033 said 8 years ago

    I have been gradually increasing my prices because I have yet to see a profit. Everyone that has purchased is very happy but you are right, I don't have $$ to re-invest! I am not paying myself at all. Thanks for the advice.

  • kimonolove

    kimonolove said 8 years ago

    "perhaps you should price for folks who have more disposable income than yourself. You are not always your target market" I think this is good advice. I often think everyone is in the same boat as me!!

  • GardenPartyFibers

    GardenPartyFibers said 8 years ago

    good guideline for pricing, but would make my yarns unbelievably spendy! i also consider others selling similar yarns to mine. I have been selling my handspun yarns for almost 20 years and find I am in the middle range for pricing.

  • newhopebeading

    newhopebeading said 8 years ago

    good info!

  • METALZOOO

    METALZOOO said 8 years ago

  • VisionsOfOlde

    VisionsOfOlde said 8 years ago

    Thanks you for a very encouraging article. I needed it badly!! Phyllis

  • LeapARTandVintage

    LeapARTandVintage said 8 years ago

    Thank you!! Great advice on how to figure out the wholesale and retail prices. That makes it much easier to calculate!

  • OrdinaryMommy

    OrdinaryMommy said 8 years ago

    Some of my pieces are very time consuming, and I don't quite see this formula working for me. I've finally gotten my pricing to the point where Labor + Materials = Wholesale. katestriepenjewelry had a formula in her comment (Materials x 2 + Labor + 10% overhead = Wholesale) that might really work for me though! Thanks, as always, for sharing your valuable insight!

  • zoegirldesigns

    zoegirldesigns said 8 years ago

    Lots of good information to think about, thank you!

  • naughteebits

    naughteebits said 8 years ago

    thank you for this, it's something i SERIOUSLY need to work on!

  • ShabbyNChic

    ShabbyNChic said 8 years ago

    Great formula and explanation on pricing! Had been thinking about raising my prices, but now I know I need to!

  • sixonedesigns

    sixonedesigns said 8 years ago

    Great information!! Thanks!!

  • wickedthreads58

    wickedthreads58 said 8 years ago

    Great info, I sometimes think people just don't want to pay for quality, handmade items. It's cheaper to buy from a local "convienience" store. Won't mention any names!!!Items which are not made in the U.S. and are poorly made. I don't get it! We need to pay ourselves first, I'm sure not going to "give it away", then I'd be giving in and I refuse to do that.

  • TheBeadedJeanie

    TheBeadedJeanie said 8 years ago

    Enjoyed the article! A lot of 'food for thought'....but, as with everyone selling on Etsy, we spend a tremendous amount of time 'creating' our items. Most of which, are OOAK. I find it difficult to up my prices to encompass my time and stay competitive with what can be purchased locally. With the economy as it is, people have tightened their purse strings and sales have dropped. Artisan creations are beautiful and unique and I am proud to consider myself an Artisan…….. But unfortunately...I am becoming more and more aware that shoppers have lowered their budgets to accommodate the necessities to get by as best they can. I’m sure there are still shoppers out there that buy what they like without a second thought about price…but, not as many as their use to be. Don’t mean to be a Gloomy-Gus…Hey, tomorrow’s another day….the sun will come out….and we all will be blessed to enjoy it!

  • Pillows2Please

    Pillows2Please said 8 years ago

    Amen! Consider too, many years of experience, and the cost of schooling which contributed to your creativeness. These should be factored into pricing also. I have put the better part of myself into my work to meet the standard of excellence I have set for my business. If I lower my prices, I lower my standard and my attitude eventually becomes affected which affects my product. There IS a customer out there who is willing to pay for a unique, original design, hand painted and created into a pillow to compliment their home decor.

  • treeandsap

    treeandsap said 8 years ago

    Great article, especially as I am a new shop and I wonder am I too high or too low or juuuuust right.

  • sarahndipities

    sarahndipities said 8 years ago

    great ideas! I've often wondered if I'm not asking enough...or if I'm asking too much! Thanks for the tips!

  • BeachHouseLiving

    BeachHouseLiving said 8 years ago

    Well written and very good information. Pricing is agonizing. Some of my items are higher because the materials are higher and some don't move because of it. katestriepenjewelry had a formula in her comment (Materials x 2 + Labor + 10% overhead = Wholesale) This I might try. Thanks so much for the reality check and encouragement.

  • TheBeadedJeanie

    TheBeadedJeanie said 8 years ago

    Enjoyed the article! A lot of 'food for thought'....but, as with everyone selling on Etsy, we spend a tremendous amount of time 'creating' our items. Most of which, are OOAK. I find it difficult to up my prices to encompass my time and stay competitive with what can be purchased locally. With the economy as it is, people have tightened their purse strings and sales have dropped. Artisan creations are beautiful and unique and I am proud to consider myself an Artisan…….. But unfortunately...I am becoming more and more aware that shoppers have lowered their budgets to accommodate the necessities to get by as best they can. I’m sure there are still shoppers out there that buy what they like without a second thought about price…but, not as many as their use to be. Don’t mean to be a Gloomy-Gus…Hey, tomorrow’s another day….the sun will come out….and we all will be blessed to enjoy it!

  • oddoneout

    oddoneout said 8 years ago

    sigh. If only everyone followed this pricing rule. As it is, Etsy is very competative, and this drags prices down. I know that I shop around to find the perfect balance between price and quality when i buy here, I excpect that my customers do too.

  • Propinquities

    Propinquities said 8 years ago

    Excellent advice! Thank you! I think too many of us price too low & then the rest of us feel like we have to compete. In the end, we are questioning if it is worth it.

  • emmabeadolney

    emmabeadolney said 8 years ago

    Great article, I have wondered about pricing for a long time. THanks

  • zsazsaslovelies

    zsazsaslovelies said 8 years ago

    This topic has been perplexing me for real. You always hit the nail on the head. Thanks for sharing !

  • amitiedesigns

    amitiedesigns said 8 years ago

    Really great article! Pricing and quality of product is the key. :0)

  • fatdogbeads

    fatdogbeads said 8 years ago

    excellent article. a lot of things to think about....

  • Alterity

    Alterity said 8 years ago

    Figuring out my prices is probably the only thing I am not fond of in my business. I currently do: cost of materials + Labor x 2 = price According to this formula, I am only selling at wholesale. I really don't think anyone would bite if I sold this price X2! Like I said, trying to figure out prices is the worst. I want to make sure I receive a profit so I can grow my business, but I want to be sure that my pieces are not out of reach for the majority of the population.

  • forKMZ

    forKMZ said 8 years ago

    I used to make a mistake of comparing my own stuff to mass-produce stuff available in the stores and I'd be thinking, who would pay higher price to buy my stuff when they can pay less to buy at the store? So I'd price low and trying to be competitive for the stores. I guess the key is emphasize that my stuff are designer and be different from those in stores, so that they can be priced higher. But if I'm selling something that's similar to what can be get in the stores, then no choice I can't be pricing them high.

  • BijiBijoux

    BijiBijoux said 8 years ago

    Excellent! I will go ahead and work on my prices right now.

  • victoriaruhl

    victoriaruhl said 8 years ago

    this is very helpful!! I always debate with myself about the prices of my items!

  • AngelasPaperArt

    AngelasPaperArt said 8 years ago

    great article!

  • bonhomiejewelry

    bonhomiejewelry said 8 years ago

    Fabulous article! Something I've been struggling with but I'm slowly coming to terms with it. Thank you!!

  • myhandmadecrafts

    myhandmadecrafts said 8 years ago

    definitely food for thought! wow! and i just realised i'm selling at wholesale prices~ maybe it's time to revisit my prices. thanks for the great article! :)))

  • grandmagrizzly

    grandmagrizzly said 8 years ago

    Great advice for those of you who make one-of-a-kind items. I produce hand-designed sewing patterns (some from as far back as 1946)for making teddybear clothes. A lot of my time is spend in validating the patterns to make sure they are easy to follow, fun to make and fit the correct sized bear. I average the cost of producing one pattern over 100 sales to arrive at my wholesale cost. Not much profit yet, but as sales increase, my cost per item should decrease. This article is a good place to start for most, but be flexible in accounting for the way your items are produced.

  • TchotchkesByHolly

    TchotchkesByHolly said 8 years ago

    some real good advice here. Some things i truly never bothered with. looks like i got to get my head out the sand and get to work!

  • RozPetalzStudio

    RozPetalzStudio said 8 years ago

    Great asvice for finished items - thanks? Any suggestions for handmade supplies? I've found if you get too procy, people simply go to the cheaper supplier. Any thoughts?

  • theecochicboutique

    theecochicboutique said 8 years ago

    Superbly Written Article Thank You for Your Insights :) Patti THE Eco-Chic Boutique

  • StrangeFruitKnits

    StrangeFruitKnits said 8 years ago

    Spot on! Great advice. Always good to know you are on track with costing items. Thanks for all the great info.

  • enlalumiere

    enlalumiere said 8 years ago

    I appreciate this article because I find it is a difficult thing to remain competitive and still offer the products with many components and techniques. I have begun offering some lower price points so I don't end up in a niche of higher end. I still offer my detailed pieces and try to keep my pricing fair for me and my buyer.

  • scoreongameday

    scoreongameday said 8 years ago

    So should your Etsy price be the same price a boutique might sell your item for? So the wholesale price would have to allow for the boutique to make a profit and still sell in their store at the Etsy price? Would hate for a buyer to come across that contradiction in pricing...What do you think?

  • Grandmashandywork

    Grandmashandywork said 8 years ago

    I have a bad habit of underpricing my things just to try to make a sale.

  • LuckyRabbitShoppe

    LuckyRabbitShoppe said 8 years ago

    This is a good advice. However, I find that it doesn't apply to art. Art is undermined in the market place, not excluding Etsy. Sellers are forced to offer lower prices; then the trend is born. We're selling prints at wholesale prices!

  • KyliesKeepers

    KyliesKeepers said 8 years ago

    Great advice for a newbie. Thank you!

  • TheAngryWeather

    TheAngryWeather said 8 years ago

    Thanks so much for writing this article. It's been a struggle to me from the beginning to price my items, but i know this is something i need to do: give my work the value it deserves!

  • AngelLeighDesigns

    AngelLeighDesigns said 8 years ago

    Now I was just thinking that the handmade items in my shop are not selling like the vintage things, and I was going to LOWER my prices for the holidays! I'd be extremely grateful for anyone with experience (I'm pretty new) to look at my shop and convo me.

  • AngelLeighDesigns

    AngelLeighDesigns said 8 years ago

    Please.

  • doodlekreations

    doodlekreations said 8 years ago

    THanks, Danielle! I love your articles. So well written and packed with advice and valuable info. Its so important not to underprice ourselves. Its a big world out there and especially, as a newbie it is daunting . Settling into a niche and finding a target market doesn't mean we undersell our talent. Your article is a good reminder to everyone.

  • RenataUniqueGifts

    RenataUniqueGifts said 8 years ago

    Thank you for tips, Danielle! I am not sure about your pricing formula though. I read comments about your article and have to agree with those sellers who say that it works only for a few. Overall, prices have to be lower that the item is REALLY worth in order to be sold. Buyers DO look for cheaper prices for the similar items. That hurts, but is true.

  • kathrynNORDSTROM

    kathrynNORDSTROM said 8 years ago

    I appreciate this article and everyone's comments. I just opened my store and am I working on setting pricing for additional items to list soon. I will admit to feeling pressure to price closely to other similar items and I'm not sure if that is the right track to take. Like LuckyRabbitShoppe stated- "then the trend is born."

  • TMutzCreates

    TMutzCreates said 8 years ago

    thanks for the advice...

  • whiletheyplay

    whiletheyplay said 8 years ago

    Wow! This article made some excellent and helpful points. Thank you sooooo much! I am definitely going to reevaluate my pricing before the Christmas season approaches and actually sit down and decide what my labor is worth. Thanks for this thought provoking article!!!!

  • peskycatdesigns

    peskycatdesigns said 8 years ago

    Thanks Danielle! This article came just the right time. I realize most of my prices do need to be re-evaluated. I have lots of people inquire about wholesale work of my purses. With my present price point there is no way I can do wholesale if that means selling my work for half the price. I love what I do but I want to make a living from it. In the end that's the whole point, to make a living from something you love. That in turn allows you can keep doing what you love and not have to do something else to support yourself. :)

  • Crystalphotography

    Crystalphotography said 8 years ago

    Great advice. Wish I knew how to apply it to my photography stuff!!! How do you calculate your time- you go out shooting here and there, edit, play around with ideas, order on demand-sometimes have on hand, and sign the prints....not sure if this equation really applies to photography... Or does it?

  • myart4wear2007

    myart4wear2007 said 8 years ago

    Excellent Info! Thanks So much for sharing!

  • forKMZ

    forKMZ said 8 years ago

    labor cost is really subjective... now alot of mass-produce items are manufactured in countries with cheaper labour... if we use our actual labour cost... LOL... i think the price would be too high... so price HIGH for items NOT available in store not mass-produce.. price LOW for items similar to mass-produce items / those items in store.

  • WendysJoy

    WendysJoy said 8 years ago

    my question is, where are these "willing to pay fair price" customers? In this economy people seem to be very careful with their money. In previous years we would sell out of my higher priced items at shows, but now, people don't even touch anything over $10! I keep having to add more low-end goodies just to nickel-and-dime our way to a profit at these events. is the forecast better for this holiday season? I am hoping so.

  • hopeink

    hopeink said 8 years ago

    thanks for reminder & encouragement. very timely :)

  • BuiltByBert

    BuiltByBert said 8 years ago

    Hummm... November 1st may see some changes in my shop. Tis' the Season. Really good article, and some really good comments.

  • FusedNTwisted

    FusedNTwisted said 8 years ago

    It's always good to be reminded about pricing, thank you. However, pricing is driven by many things like the market, the competition, supply and demand, etc. I do a regular happiness check i.e., can I make an item and ship it for my price and feel like I am standing tall? If not, it will show in my work. I tend to work backwards, figuring out what the item should sell for and then, how can I make it for that price? With handforged jewelry, it's tricky due to the fluctuating metals market.

  • Camielle1

    Camielle1 said 8 years ago

    I also agree that this pricing strategy is not feasible for items which require more labor. With things such as photography or jewelry, it may work, but for knitters, crocheters, and seamstresses, this simply won't work. We'd never manage a sale, especially not wholesale.

  • artfoodlodging

    artfoodlodging said 8 years ago

    There seems to be A LOT of people on Etsy that way underprice their work! It makes it very difficult for those that actually price their work according to what it should be, not at wholesale to begin with ....not that this will ever change!

  • HowlingDogsStudio

    HowlingDogsStudio said 8 years ago

    Such good information about pricing. I've enjoyed reading everyone's feedback.

  • dslookkin

    dslookkin said 8 years ago

    Wow...I recently raised my prices significantly but after reading your article my retail is still my whole sale price - yikes! It's a scary step forward but I followed your advice! Can't wait to see what happens! Thanks! xox dawn xox

  • weepereas

    weepereas said 8 years ago

    Wonderful! I agree with this pricing and think too many seelers under price their work. I have been re-evalutaing my shop and writing better desciptions and taking better photos to line up with my higher (and more accurate) pricing..

  • sweetnsalty

    sweetnsalty said 8 years ago

    While I agree with this article, keep in mind how overpriced things have become. Paying retail means you went to the store and paid for the item and the building, personnel, etc. Handmade movement is such a great success because people are tired of retail and it's stunted options! eBay used to affordable, now they charge more than retail! Why alienate the consumer further?!

  • OhRita

    OhRita said 8 years ago

    Wow! Good stuff. I just realized that I haven't really factored in all my expenses. Oops, I am at wholesale according to your info. Well, let's see if I am bolds enough to take the leap...I want to...just harder to push all the right buttons than I thought. :) Thanks so much. Rita

  • MelonandPebble

    MelonandPebble said 8 years ago

    Wow. Thank you so much. I have few numbers to crunch!! xo, Lori

  • CariCreates

    CariCreates said 8 years ago

    Super & very informative!

  • dalilascloset

    dalilascloset said 8 years ago

    Thank you so much for this information...it really helps especially when I am just starting out. Dalila

  • sesenarts

    sesenarts said 8 years ago

    I was going to say 'It's all so hard!'. Needing to compete, blah blah... But no, it is all about choices. off I go to have look at my items.

  • TesoriTrovati

    TesoriTrovati said 8 years ago

    This is such a great post. I have been in discussions with other artists, some recently, about this very thing. You have put it all much more succinctly. I will bookmark this to share with them next time it comes up! Thank you for your inspiration. And yes, I believe in this formula and have been using it for years to great success. Enjoy the day! Erin

  • asisabg

    asisabg said 8 years ago

    Oh,thank you so much for the tips very helpfull now I'm ready to ROLL aside from taking all the perfect pics. Bunches, Brenna

  • FourDirectionsPhoto

    FourDirectionsPhoto said 8 years ago

    Extremely interesting. Thanks.

  • HeyChica

    HeyChica said 8 years ago

    I'm marking this article and comments to read later, I have some handmade items to list and this will be helpful!

  • cornmealfry

    cornmealfry said 8 years ago

    thanks! i've been trying to figure out how to do pricing..

  • dahlilafound

    dahlilafound said 8 years ago

    Trying to read all your posts! I sell handmade and vintage. Calculating the cost of vintage items is a bit tricker. So many different pieces at wildly different worths. I do have a tendency to overlook my overhead--boxing, packing supplies, mileage, repair, thank you notes. It really does all add up. I've even been known to eat it on some shipping costs if I haven't weighed an item completely packaged. I SO want my customers to be happy, but if I don't make enough money it's sometimes difficult. And, the nest egg! Oh, I could use a new camera & a really nice mannequin. ;-) thank you for good points. dahlila xxoo

  • carriveau

    carriveau said 8 years ago

    Thank you for all your great tips. I have had some good things happen since trying to improve my shops pictures and pricing. I hope to fill it more. It takes so darn long to paint all these guys with my kids running around me. Any way..thank you for helping us learn many fun tips and I hope you had fun trying to keep us motivated. Good luck to you too as well :)

  • shellclan

    shellclan said 8 years ago

    Thank you for this! This really helps a lot and a lot of what you said I had never thought of. Again, I appreciate your advice.

  • shellclan

    shellclan said 8 years ago

    Thanks so much for the great advice! I have to admit, I had not put a lot of what you mentioned into the configuring of what I make. I appreciate all you shared!

  • taramalcolmdesigns

    taramalcolmdesigns said 8 years ago

    Thanks..for the info.I'll look at my prices to see how it compares.

  • cowboykeithsplace

    cowboykeithsplace said 8 years ago

    I teach at an art college in Boston and this type of article is so useful in the classroom. As someone who is preparing young creatives I have to remind them that they too are young business people. The language in this article is so easy to comprehend, that you don't need a fancy business degree to understand it. Thank you!

  • relishdesignstudio

    relishdesignstudio said 8 years ago

    Great advice. Unfortunately I've found that other sellers in my category (paper goods) price their items so low that I cannot raise my prices or else no one will buy from me. I know there are a lot of sellers who can't possibly be making any money, and it ruins things for those of us who are priced higher to make a profit.

  • MrsCraftyRVing

    MrsCraftyRVing said 8 years ago

    I like what this article had to say but I'm having a hard time selling at low price.... I twitter everyday and facebook everyday and now I blog about my items and still having a hard time. Maybe my luck will change I hope.... http://www.facebook.com/pages/MrsCraftyRVing/128619680519872

  • SusannahsEmporium

    SusannahsEmporium said 8 years ago

    I do like that formula but with my items, if I were to price them with that formula, no one would buy them. I just got a convo from a buyer today who loves my items but can never find them at the price point that I offer. I responded by saying I try to keep my prices affordable and at the same time cover the costs of my material and labor. Also I am ALWAYS reinvesting my profits into buying more raw materials, to produce more merchandise, more so than spending it on myself.

  • PureaAccessory

    PureaAccessory said 8 years ago

    Pricing is hard , but very important element for handmade products. I work between Japanese yen and U.S. dollar, so even more difficult.

  • PopMosaic

    PopMosaic said 8 years ago

    Pricing is a complicated job: if i had to consider labor, material, time to snap pictures, time to describe and promote the item, how could I really value all this? I try to focuse most of all on the technique, choosing not so high value material, hoping that my (future :-) customers could appreciated the idea, the labor and the technique on each item! The experience will be my best teacher :-))

  • BarkingDogBlanket

    BarkingDogBlanket said 8 years ago

    I wish this article was out when I first started I had to learn the hard way. But I think that this is great advice, perfect actually and hits it it right on. thanks for the validation.

  • LeighWagnerDesigns

    LeighWagnerDesigns said 8 years ago

    That pricing formula has been most instructive. I really needed some guidance here. Once again, you've got me thinking.

  • reimaginedtreasures

    reimaginedtreasures said 8 years ago

    I am very conscious of valuing my work, my time, and want more profit for my family, since I am spending lots of time making clothes and hats for others. On my best selling knitted organic hats, I am charging $34, $10/hr plus cost of yarn when I get it on discount. Currently, I have some of the highest prices when I search organic earflap hats on etsy. If I used the formula, I don't know that I could keep selling, and I need some income, rather than holding out for higher income! That is my dilemma. I do see more pricey children's clothing, and probably could do better in my pricing there. I am looking at that for the upcoming new stuff.

  • iomiss

    iomiss said 8 years ago

    Great article!!

  • cosmichippodesigns

    cosmichippodesigns said 8 years ago

    I agree with you, Danielle. Since I've raised my prices I feel better about my creative output and time spent. I still don't figure in the actual "real" time it takes to make or photograph or shop for materials. I just figure that's part of what gives me pleasure.

  • CalienteJewelry

    CalienteJewelry said 8 years ago

    great advice! I guess now I have some calculating to do. =)

  • Kittyandme

    Kittyandme said 8 years ago

    Excellent article. Thank you! Yes, I think we do forget that we ourselves are not always are target market.

  • OrangeBlossomCrafts

    OrangeBlossomCrafts said 8 years ago

    I always want to be fair, but maybe I'm being unfair to myself. I don't think I ask enough for some of my pieces. I do spend so much time on getting supplies together, and taking photos! Time to reevaluate pricing. Thanks Danielle!

  • Asyoulikeitcrafts

    Asyoulikeitcrafts said 8 years ago

    Thanks for such good advice

  • mattyhandmadecrafts

    mattyhandmadecrafts said 8 years ago

    Thank you very much, still think this is the hardest part of the whole process.

  • erinflett

    erinflett said 8 years ago

    just what I needed to hear..thanks! e

  • JaniceCordeiro

    JaniceCordeiro said 8 years ago

    This is such an important topic enough just can't be said. I see so much undervaluing just to get sales numbers. Thanks for bringing this topic to the attention of the sellers. It should be revisited often.

  • Bluebelldesign

    Bluebelldesign said 8 years ago

    It's a great formula and explanation, thanks. I wish it DID apply to my craft, but alas, there's a perceived value applied to knitted items (and the other traditionally female arts) and it's not a high one. Still, I'm going to keep trying to educate people and will always fight for my right to be paid a living wage!!

  • sacredmoonherbals

    sacredmoonherbals said 8 years ago

    Thank you very much for this article. I have been making and selling handmade for almost seventeen years and pricing has always been the hardest part. Even though I don't exactly agree with the formula that is used, it gives a good starting point. One thing to remember a lower price does not always equal more sales. By underpricing your product you are projecting to the buyer that your items are cheap. And by cheap I mean shoddy workmanship not worth a whole lot. The problem lies (for me anyway) in finding the middle ground. Pricing high enough to show that I believe my work is valuable without pricing myself out of business.

  • LetterLoveDesigns

    LetterLoveDesigns said 8 years ago

    Great article - lots to consider as it is a complicated subject. Not sure my pricing follows that formula...it would make my products too expensive I think.

  • redemptionart

    redemptionart said 8 years ago

    Mahalo...my problem as a new vendor has been postage, esp. being from Hawaii, however I am beginning to hit it right on the nose..getting there..all about balance! Thanks again

  • sewkin

    sewkin said 8 years ago

    Thank You, this is an area that most of us loose sight of.....our time is very valuable

  • museumshop

    museumshop said 8 years ago

    Very interesting article. But I don't have no one to compare proses of my item because I am the only artist work with leaf art in USA. Not too many people know that you can create beautiful work of art with rice leaves. I would like to hear from fellow etsins about how to price unfamiliar to most people, but it is very unique & beautiful. Pricing is very difficult part of my business also, so I am discounting almost 90% off my value for sale. Any advises.?

  • One4TheSun

    One4TheSun said 8 years ago

    Well said! I Have been thinking along those lines now I just need to implement them. "Your incomparable voice is the culmination of your creative life: your education, research, travel, dreams, personal experiences. This is valuable, so give it value" Love your closing line too :)

  • HappyBugDesigns

    HappyBugDesigns said 8 years ago

    I like that the article makes you stop and think about your pricing. I don’t think sellers stop to consider all that goes in to making their product. I recently revaluated my pricing and found I needed to adjust prices on some items. I created a formula which helps me to list out each component, and lets me set my hourly wage and the rate of profit I want to see on each piece. The formula in this article wouldn’t work for me – maybe it would work for higher priced items. I once read an article that said a standard craft markup would be 1.2 times the materials cost, and have used that in my formula. There are times I need to adjust, but it is a good starting point. Also, I look at similar items on Etsy, because that is what your buyer is going to do. You don’t have to be the cheapest product to get the sales, but you need to understand the average price for your type of item. The more unique the item, the higher the price you could get for it. I put my price calculator in Google Docs if anyone wants to take a peek. I include the Etsy and Paypal fees as part of my calculations, so I see all costs. All the items in blue are where you would input your own information. You can adjust your hourly wage, and even the paypal rate you pay, since it can vary based on your account. I also created a calculator for the formula listed in the article, for comparison. You can use either one, whichever works best for you. One thing that I don’t account for in my own pricing is the time it takes to photo, edit photos, price, size and list items. That is actually a huge chunk of my time, compared to the few minutes it takes to create a bracelet. You could consider adding that to the time it takes to make your item. Please feel free to convo me if you have any questions about the spreadsheet. You can download the spreadsheet to use on your own computer. If you don’t have Microsoft Excel, you should be able to make a copy of the spreadsheet and save it into Google Docs for your own use. Copy and paste this link into your browser. https://docs.google.com/leaf?id=0B0M-6PPQ0VLwNTJlNWFiZmMtNDNlMC00MjcxLWE2ZTEtYzljOGI5Yzg0MTgy&hl=en Also, please remember that if you are going to adjust your pricing, Craftopolis has a bulk editing tool that is amazing and saves so much time.

  • AVIDesigns

    AVIDesigns said 8 years ago

    Very good advice. I have to keep a lot of that in mind because I tend to think I'm priceing to high. Thank you

  • kirevi8

    kirevi8 said 8 years ago

    Thank you for sharing!

  • princessdoodlebeans

    princessdoodlebeans said 8 years ago

    So much to think about! Thanks for the article.

  • MJOriginalsLLC

    MJOriginalsLLC said 8 years ago

    Great article! Why are we selling on Etsy if we aren't making any money? We have skills and talent, people!

  • thewaughdrobe

    thewaughdrobe said 8 years ago

    A truly inspiring article, well written. Thank You!

  • mapdoja

    mapdoja said 8 years ago

    Pricing an item can be intimidating but your advice is really helpful. Thanks.

  • julessabjewelry

    julessabjewelry said 8 years ago

    Awesome tip, just in time for the holiday shopping!

  • baysidewiredesigns

    baysidewiredesigns said 8 years ago

    Such great advice. I've been in business for over 6 years and I've always struggled with this. I noticed the competition in the handmade jewelry is fierce on etsy and thus is very difficult to price right. We would have a tendancy to price lower, but as you mentioned, we need to be true to our worth. Your tips are so important. Thanks for pointing them out. :)

  • JenniferLynnProducts

    JenniferLynnProducts said 8 years ago

    This is excellent advice, and this is pretty much how I price. I charge a pretty high hourly rate, because I am worth it, and I do everything by hand. (OK, so I don't print my photos at home--no room for the printer I'd want/need for that!) All of my handmades are truly that, though, and--because I work with found objects, recycled components, etc--All of my handmades are truly one of a kind. I can REPLICATE my designs, but most of the time, I can't DUPLICATE them. Great article!

  • theitsybitsyspider

    theitsybitsyspider said 8 years ago

    Um... your calculation is missing a couple factors... remember *supply* and *demand*? It would be great if we could price our items in a vacuum, but we can't. For every amigurumi doll I list, there are 10 Etsy sellers who are willing to GIVE a doll away for less than half the price. It's a rotten economy. We all comparison shop. We all look for the right price. Anything else would be wasteful. I love the idea, Danielle, but we have to be realistic here.

  • GutterGlory

    GutterGlory said 8 years ago

    thank you! food for thought .. definately need to do some reevaluation! :)

  • amermaidintheattic

    amermaidintheattic said 8 years ago

    I understand the need for articles like this, as artisans we really do need to stop selling ourselves short. I get really frustrated when I see items for sale on Etsy at prices that couldn't even cover the cost of materials. But there are so many variables that have to be taken into account, that this formula really isn't feasible for many. The simple fact that Etsians are spread all over the globe and therefore have wildly differing labour costs, postage costs and materials costs, makes it impossible to use this formula if we're all competing in the same marketplace. Even if I only paid myself the minimum wage here (which has just gone up to $15/hour, or approximately $14.50 USD at current rates) using this formula would still make some of my items ridiculously expensive. I'm about to list some small hand-painted Christmas decorations, painted on wood slices, and this formula would make each one $75 to $90. And that doesn't include postage! A few weeks ago I received a message from an Etsy member who really loved one of my items, but complained that it was "SO expensive". It was a $7.50 A5 art print, postage of $4. I'd like to think my work was worth more than a cappuccino and a slice of cake (and that includes the postage...$7.50 would just get you the cake), but what can you do?

  • BoltofLightning

    BoltofLightning said 8 years ago

    Nice article and I agree with many on here about the fact that the pricing strategy does not necessarily work for everyone on every type of artwork....depends on different variables but a good way to start! I do feel many Etsians sell themselves short and I do sometimes myself just to get some sales going but I can't believe a homemade item can sell for under $10!! If too of our prices are so low than everyone elses prices looks high!! We are all gifted and creative and deserve to have prices that are conducive to our creativity and costs of materials...don't forget overhead too. I don't sell as much as I would like because I am lost in a "sea of amazing jewelry artists"... not because my work is not worth it....I have a hard time finding myself actually and it's hard to keep up with the promoting....but I love Etsy and buy most of my gifts here all the time...lets support one another!! You all rock!

  • jmagdesigns

    jmagdesigns said 8 years ago

    Thank you for the great advice! This has given me lots of things to think about!

  • evihan

    evihan said 8 years ago

    such great TIPS...thank you for sharing with us Danielle:-)

  • GarrettandGrace

    GarrettandGrace said 8 years ago

    This was both timely and helpful... thank you! While I had the formula right (thanks to my husband!), I had not factored in the extra time spend searching for just the right materials... and that can be exhaustive! I will make necessary adjustments that will better reflect the true value of my pieces.

  • ElmbrookFolkArt

    ElmbrookFolkArt said 8 years ago

    Pricing! Always a subject I waffle on... too much... to little? Why aren't my products selling? Am I under pricing at just $7 and that is why items aren't moving(as fast as I would hope)? Would they really sell, if I double/tripled the price allowing for all the points that you mention? I purchased 4 $15 Showcase spots, sold 0 during the first one and only 2 items during the second. Naybe I should take the gamble and increase the pricing during the next Showcase and see if the formula really works. Or maybe it is that I am just trying to ride the economic tidle wave, trying to hold on a bit tighter so I don't get pulled down by the under tow.

  • akcopperraven

    akcopperraven said 8 years ago

    i think that this subject is something that any artist, crafter and even retailer battles with...I NEVER know what to price my pieces at though I do not want to skimp myself either...I usually compare and then price accordingly...I will have to play with the formula to see how much I am losing...ha ha...this holiday season will be an experimaent for me...I think it is all a personal choice as to what each individual decides to sell ther items at...if you feel you are doing well stick with it...as for me my only problem is posting new items and getting my shop full.....

  • DazyJane9

    DazyJane9 said 8 years ago

    Thank you so much for this article. It seems to be the hardest thing to do. When I put the formula to work on my Cross Necklace,I got this: (DazyJane9.etsy.com) $79.00(cost price) x 2 = $158.00 for wholesale; $316.00 for retail. Am I off base here when I say that is too expensive for this item? (I mean, no disrespect towards myself, I'm totally worth it :) It seems really expensive. I already have people telling me I need to put lower cost items in my shop. I'm not trying to argue at all, this is the HARDEST thing for me, "pricing", I'm just trying to understand. So many questions..... Thanks guys! Dazed and confused

  • ninasgirls

    ninasgirls said 8 years ago

    Excellent advice!!!

  • AvaGirlDesigns

    AvaGirlDesigns said 8 years ago

    My real question here is it would be great to pay myself $10 an hour but when it is all calculated out the price of my knitted items would be over a $100 a piece which I am absolutely positive no one would pay. I guess what I am asking is what do people on etsy really pay themselves hourly?

  • cattailsquilts

    cattailsquilts said 8 years ago

    This is great, except for the fact that Wal*Mess and other mass retailers and importers of goods produced overseas have killed it for fiber artists. How am I supposed to compete with a mass marketer who sells a queen size quilt for under $70, when I can barely buy the materials to make a *CRIB* size quilt for that price? With the current economic situation, people are not appreciating the small business owner and crafter.

  • LoveRachael

    LoveRachael said 8 years ago

    Thank you so much for this article! This is something I struggle with as well. Hopefully this will encourage all sellers to really value their work :)

  • lepetitreve

    lepetitreve said 8 years ago

    AS a new shop owner who has been re-evaluting my formula over and over, this article has been so helpful. Time to stop humming and hawing over the value of my work and believe in my target market. It's a demographic that is out there...now I just have to find them....or them me....both.....uhm, HALP! I can do this right? Anyone?

  • LRStudio

    LRStudio said 8 years ago

    Great advise and I have tried to follow it for years now. I guess it goes with the territory living a life as an artist, we find ourselves underestimating our work. Thank you for reminding us the value of handmade over (no offense) China massed produced. Myself I first strive to produce absolute quality after all a part of me was placed in the creation of it .

  • KendraRenee

    KendraRenee said 8 years ago

    This is just what I needed! I raised my prices a few months ago and recently have been panicking about how they'll fare in the upcoming holiday season...Deep breaths...it's gonna be okay...

  • daniellexo

    daniellexo said 8 years ago

    Hi all! The formula in this article is a common one, but not the only formula. Sadly, there isn't one formula out there that will work for everyone. Check out this Design Sponge Biz Ladies blog post for more approaches to pricing: http://www.designspongeonline.com/2010/02/biz-ladies-how-to-price-your-work.html Thanks for the feedback - I'll keep checking back in!

  • SeaZenCreations

    SeaZenCreations said 8 years ago

    Great article. I always agonize over pricing my creations! Time to take another look. Thanks!

  • BlacknickSculpture

    BlacknickSculpture said 8 years ago

    Good article! It gave me much to think about concerning my pricing.

  • missourijewel

    missourijewel said 8 years ago

    Great article! Years and years ago I was given some very good advice from an accomplished artist. He said, "If you don't value yourself and your work, no one else will either." Thru the years that bit of wisdom has helped me tremendously. If you price your art too low, it sends a desperate 'not special' feeling to the customer. His other advice was if an item isn't selling, don't mark it down...mark it up instead. As funny as that sounds, it works! I can't tell you how many times an item would sit, then I'd think of his advice and raise the price, and it would sell. :)

  • redcollieart

    redcollieart said 8 years ago

    Thank you for this wonderful series of articles! I am new to Etsy and this series has given me many tips and things to consider.

  • dOliviaJewelry

    dOliviaJewelry said 8 years ago

    I've noticed that in the Philadelphia area, jewelry assemblers (not the actual designers, the people that put someone else's design together with all the materials laid out in front of them)get $10/hour. No benefits of course. I try to keep that in mind for pricing.

  • bohoikim

    bohoikim said 8 years ago

    Great advice, after reading your formula, I am pricing my items too low...

  • bluekilnbeads

    bluekilnbeads said 8 years ago

    Pricing is always difficult - thankyou for a great article.

  • jewelsforhope

    jewelsforhope said 8 years ago

    Thanks for the article. That pricing strategy does not necessarily work for everyone. I wish it did. Many sale to everyone.

  • recycledwares

    recycledwares said 8 years ago

    Oh my.....i like how you put it: "Remember that handmade items have more value, and perhaps you should price for folks who have more disposable income than yourself." I always think of big box stores and trying to compete with them and think of my own budget for buying, but you are so right...think bigger :))

  • beadsbeadsnmorebeads

    beadsbeadsnmorebeads said 8 years ago

    Thanks, that was very helpful and informative :)

  • DevineCollectible

    DevineCollectible said 8 years ago

    I don't know about anybody else but if I get a great buy I pass it on... life is way to short to rip people just because you can... every penny counts in this economy everybody is feeling the pinch! DevineCollectible

  • StitchSenseDesigns

    StitchSenseDesigns said 8 years ago

    Wow!!! This is wonderful, I'm always so shy about my pricing & I know I under value my work, this has definately given me some good food for thought. :-)

  • feralchildren

    feralchildren said 8 years ago

    So I've been pricing my work like a local artisan oganization, which is 12.50 an hour (Includes supply shopping etc.) plus supplies then divide by .6 (So there is a 40%/60% split with me the wholesaler and the retailer which in this case is also me) Since I am also the retailer I get both the 60% which pays for my time and supplies and the 40% which pays for the extras and the photography. I have been considering adding just a few dollars extra. To pay for the pattern design, I intend to sell the patterns themselves. Keep repeating "I am not competing with Wal-Mart" Also, do some research on Etsy to see what your competition actually is. Search for similar items, check out the higher priced ones, (sort by prices, high to low) and see how many the seller has sold. Do this awhile and you will figure out what prices really are. I am always trying to figure out ways to make the process faster, and as I do it I get faster anyway. This is kind of like getting a raise :)

  • tenderbeasts

    tenderbeasts said 8 years ago

    Thanks for a great article Danielle. Sometimes I have trouble getting over pricing higher than what I can afford. Aside: I think I remember that ring from way back when (ok ok, a couple years ago maybe?) & still wish I had one. I would've totally rocked that faux rock as an engagement ring. :)

  • ravenhaired

    ravenhaired said 8 years ago

    Good advice. Thank you!

  • Lavatican

    Lavatican said 8 years ago

    Wow, I wish I had taken this advice a few years ago. If I had, I might have been able to continue working from home. Perhaps I will get another chance someday, and if I do I will definitely follow more guidelines like these and the ones on Design*Sponge. Thanks so much for the article.

  • DesignsbyDeniz

    DesignsbyDeniz said 8 years ago

    Thank you for this article. Great advice. I have been selling my handmade jewelry at bridal shows, gift shows and from my studio for about 5 years now and have been doing really well as far as pricing goes. My clients are very happy. I had started to question my pricing at my Etsy shop because I have seen other shops with really beautiful products but super low pricing. So thank you for giving the formula to work from. It is very much appreciated....

  • giddyupandgrow

    giddyupandgrow said 8 years ago

    Excellent food for though! This made me rethink my prices, but luckily my prices ended up being what they should be anyway! pheeewwwww (whiping sweat from brow!)..

  • GnoomArtfulThings

    GnoomArtfulThings said 8 years ago

    Thank you, Danielle, for another wonderful article! I use a different formula (costx1.5=wholesale, costx2.5=retail), and was bashful about asking the price that came out of that calculation... so ít turns out I'm underpricing my items. Will seriously reconsider after reading this. Thank you for finding the value of me and my hard work!

  • myhideaway

    myhideaway said 8 years ago

    I can't really apply this formula either. I spend hours on each brooch I make. If I were to pay myself even minimum wage, the brooches would be far more expensive than people are willing to pay. It's a shame, but true.

  • BabysBreathHandmade

    BabysBreathHandmade said 8 years ago

    This is fantastic!

  • Skinplicity

    Skinplicity said 8 years ago

    a great article and tips, thanks for posting!

  • MalindaJ

    MalindaJ said 8 years ago

    This is such a great article! I know I am guilty of underpricing. I need to learn to value my own work a little more. It's just so difficult to compete with mass produced items. Thanks!

  • hennyseashell

    hennyseashell said 8 years ago

    The formulas seems fantastic! But if I apply to my items it would be a bit pricey when competing with other sellers that sell the same item.

  • NaturalVibesJewelry

    NaturalVibesJewelry said 8 years ago

    Very useful and insightful. This article helped me reevaluate my work vs. time, labor, etc. Thank you for the great info!

  • IslandTribe

    IslandTribe said 8 years ago

    Thank you for writing & sharing this! It drives me wild when I see a quality handmade item selling for next to nothing because the artist either doesn't know how to price, or doesn't value their labor at all. It also makes it that much more difficult for an artist with years of training to sell handmade goods for what they are worth. People will look at a similar item and then scoff at the price tag on the other.

  • weebit

    weebit said 8 years ago

    Thanks for sharing this. I feel like I have a pretty good formula down for my pricing, and it's taken the emotion out of what can be a hand-wringing process, but that doesn't make it any easier to look at the final price and say, "Wow. I know that's what it's worth, but will anyone really pay it?" Accurately pricing my work is something I continue to struggle with. Thank you for sharing this article.

  • siragwatkins

    siragwatkins said 8 years ago

    Thanks for this. I often get comments both about how reasonble and how high my prices are, which is confusing. Most of the "reasonble" coments come online, often from peopleliving in lrger cities or tourist craft-shopping areas, while most of the "high" is local, where prices tend to be lower and buyers perhaps less knowledgeable. I like to use somewhat expensive materials--sterling, semiprecious stones--in some of my work, though I also make pieces using base metals, vintage "junque", etc. I usually get pretty good prices on my sterling and stone components, but they seem to give people used to mass market jewelry sticker shock. I don't have an answer, other than making both and providing as many choices as possible.

  • michellearnold

    michellearnold said 8 years ago

    This is always a struggle! Thanks for the help -- -and the reminder that I am not necessarily my own target market!

  • petalbelles

    petalbelles said 8 years ago

    Thank you for this article, Danielle. A lot of times people who make handmade items feel as though we should make things "cheaper" because it is "homemade," as if the wonderful and beautiful things we create are like baking cupcakes from a cake mix for your kid's fourth grade class. This article is so valuable because it gives us permission to place rightful importance on our talents and our work. Thanks again, Danielle.

  • VibrantTrains

    VibrantTrains said 8 years ago

    Thank you for the great article.

  • jpstyle

    jpstyle said 8 years ago

    Excellent information. Thank you :)

  • OrganicJuju

    OrganicJuju said 8 years ago

    Great information. This is something you can't hear enough! Thanks.

  • StAnnesPixies

    StAnnesPixies said 8 years ago

    Thanks ~ your story about the ring totally rings true. Whoa! No pun intended, LOL!

  • phenomenalcouture

    phenomenalcouture said 8 years ago

    i didnt know i could price my products that high... i think i might hv underestimate my labour time...

  • moovmint

    moovmint said 8 years ago

    thank you so much, I have been contemplating my prices ever since I started and have been starting to think they are to high, but if I take in your equation they would be much higher. I do want to sell my item and wish I could more, but that is on me and my marketing. I do have to remember working 20 hours on a one of a kind item its ok to sell them for what there worth and and if I sold my stuff for less I wouldnt have any left to keep investing in my art. Thanks again

  • NutfieldWeaver

    NutfieldWeaver said 8 years ago

    I cannot keep up with demand right now, yet I am unwilling to automate my weaving process. Thank you, Danielle, for this very thought-provoking article! :)

  • Marilynn07

    Marilynn07 said 8 years ago

    Yes...good advice. I think my prices are about right for Etsy, but I've seen prices way lower on some of the other craft websites. How do these people afford the web commission and the time to sit and do crafts? Oh, yeah, the prices are not even covering the price of materials.

  • prendasbyenid

    prendasbyenid said 8 years ago

    You have a great point that I always forget > don't try to sell to everyone!!! I have work to do!!! Thanks!!!

  • nbrosh

    nbrosh said 8 years ago

    Thank you again! This whole series is a treasure! Naama, Israel

  • NASchuttDesign

    NASchuttDesign said 8 years ago

    Much needed article! I get asked all the time about how pricing actually occurs. Luckily my products are inexpensive to make so its largely the time that goes into them that I have to compensate for. I think that many artist undervalue their actual effort. Even so, I think its worth reevaluating my prices, I know people aren't too scared of them because my highest ticket items fly off the shelf the fastest! Thanks so much!

  • craftymcgee

    craftymcgee said 8 years ago

    This is such a tough topic for me. Using your formula (materials, time x 2 x2), my embroidered figures should sell for about $90 each! There is absolutely no way in the world I will EVER charge that much, and it's not because I don't value my work or my time. That said I do think I can/will raise my prices a bit.

  • earthnskystudio

    earthnskystudio said 8 years ago

    Wonderful and wise advice here! Thank you!

  • craftymcgee

    craftymcgee said 8 years ago

    Me again. I also wanted to ask a general question to folks. Danielle, you say that if you have a budget of $25 to spend on someone you'll pass on something less expensive. Do people really shop that way?! If I find the perfect item for someone, I buy it! (Unless, of course, it's far out of my budget) If it's too far under what I thought I'd spend, I'll just find some other small thing to add to the gift.

  • SnipsAndStitches

    SnipsAndStitches said 8 years ago

    Great information. Thank you.

  • regansbrain

    regansbrain said 8 years ago

    Holy crud. Great article! Well, my prices are going to be increasing so buy now and save! Ha ha! Another good thing to remember is that if your prices are set really low you are not only hurting your business but all of the other vendors who sell similar items to yours.

  • celestialdesignsNY

    celestialdesignsNY said 8 years ago

    I appreciate your article very much. Customers have always asked me why my stuff is so cheap. I'm a "bargain shopper" and I guess I think everyone is! NOT SO. There was quote: "That which we obtain too easily, we value less". Don't know who said it, but it's really true. People do think that something is "better" because they pay more. So, I guess it's time to change my price tags!!! Thanks.

  • HydrangeaRow

    HydrangeaRow said 8 years ago

    Excellent points--thanks!

  • purlsofcolour

    purlsofcolour said 8 years ago

    Thanks for the great article. As a knitter, I am very much aware that I could never charge for all the time I spend knitting a piece even if I give myself the UK minimum wage - nobody would buy it. I've actually based my prices on what UK Fair Trade shops charge for their knitted items, because I do want to be fair to myself, too. I know how much my pieces are worth, but most shoppers aren't. I find it extremely frustrating that you constantly have to explain the difference between handmade pieces and cheap bargain shop mass-produced items - I have to remind myself all the time not to sound apologetic for my prices. It's amazing how rude people can be at craft markets when they realise that I am not selling something for 'a fiver'. Until we can change people's mindsets and shopping habits, it will be hard for us crafters to quit our day jobs.

  • good4you

    good4you said 8 years ago

    wow, made me realize i need to pay myself more. thanks!

  • 116Roselaine

    116Roselaine said 8 years ago

    Thank you for this article. This is an issue that I always struggle with. Finding a balance is very difficult. If you price too low, people don't think it's good quality. If you price too high, they don't buy. The economy has made things even more difficult, especially in my area. Keep hoping for more online sales, but finding it difficult.

  • rachelsoriginalart

    rachelsoriginalart said 8 years ago

    thank you so much for this advice. I think I have been pricing for me and not my market. I will re-evaluate. Thanks.

  • TassieDevilKnits

    TassieDevilKnits said 8 years ago

    Great advice, but it can't be applied to knitters. Fortunately, I love my "knitting job" and as long as I cover my costs and a little bit more I'm happy. Oh well, back to the sweat shop!!

  • zanzibarbyrose

    zanzibarbyrose said 8 years ago

    As a self employed/contracted person (outside of Etsy) I have to deal with pricing all the time. Yes, it can be scary to see what your item "should" cost, but when you're pricing you need to consider more than just will you cover your costs. If you are an inexperienced artist and you take a long time to complete one item, perhaps you should consider either reducing your hourly labour costs until you are able to work at speed, work out a "professional" timepace for how long your work should take and price according to that, or reconsidder your design/production method. Part of having a viable shop is being able to make enough money to make it worth your time. If it takes all day you should expect to make the same or more money than if you worked somewhere else. If it's a hobby you may think it doesn't matter as long as you cover your costs and make a little "pocket money" butyou couldn't be more wrong. If you underprice because of your inexperience, insecurity or any other reason you are spoiling the market for those of us who are making a living out if it. If you offer your product at hobby prices how can we compete? Irresponsible pricing in your shop puts my quit your day job date back...

  • faithnhope10

    faithnhope10 said 8 years ago

    You are so right. Thank you for all of your wonderful advise. I always come away with something after reading everything you give to us. Thank you!

  • NoaSharonDesigns

    NoaSharonDesigns said 8 years ago

    Thank you so much for that input. Though i find it hard to implement...

  • doodlink

    doodlink said 8 years ago

    Dannielle - Excellent article taking the mystery out of pricing. Thank you.

  • impressionsbyheidi

    impressionsbyheidi said 8 years ago

    Thanks for a great article. I hate pricing. I just never know. This is really helpful and gives me a little confidence about pricing.

  • sweetcreekherbs

    sweetcreekherbs said 8 years ago

    The comments were all very intersting, as well. Thank you.

  • sofisticata

    sofisticata said 8 years ago

    Thank you for the formula Danielle :) Very helpful article as always!!

  • quillandinkhandmade

    quillandinkhandmade said 8 years ago

    Great post, Danielle! Pricing always feels risky, and I'm sure that there are a lot of sellers that second guess whether their product is worth the asking price. Thanks for the confidence boost :)

  • pollon2006

    pollon2006 said 8 years ago

    Great tips Danielle!!!!!!!!Thanks!!!!

  • gretchenmist

    gretchenmist said 8 years ago

    beautifully written, great advice. thanks for the reminder of our worth :)

  • mosey

    mosey said 8 years ago

    thank you danielle, great article ~ great reminder! xo

  • SouthernScrapper

    SouthernScrapper said 8 years ago

    As a new seller this is very helpful!

  • UglyBaby

    UglyBaby said 8 years ago

    Such good advice about being careful to price your items so they are at common denominations people would think of when gift giving. It makes perfect sense.

  • jadecicada

    jadecicada said 8 years ago

    lots of people thinking hard about this topic, clearly.

  • theduskyjewel

    theduskyjewel said 8 years ago

    Great advice, thanks for the reminder we are worth alot more than we give ourselves credit for!

  • PocketCardsbyPam

    PocketCardsbyPam said 8 years ago

    It is so difficult to land on a price that isn't to low (people don't think it is worth much then) and to high (then they don't think it is worth the extra $$)!! I can tell that the majority of us feel the same way. I wish there were a special "PRICING GENIE"

  • PocketCardsbyPam

    PocketCardsbyPam said 8 years ago

    WOW...this is always the difficult part of loving what you do. I know it is worth way more than what I list it at, but am so afraid of raising my prices and risk NO sales at all. Thanks for instilling in us the fact that we ARE worth more than we believe we are. I will have to go back and evaluate what I am pricing things at!! By the way...can anyone out there direct me to the "PRICING GENIE" so I can schedule a visit and have him/her do my pricing?!! (^;

  • JanFairhurstPottery

    JanFairhurstPottery said 8 years ago

    Thank you for all the good info and confidence to not go "too cheap."

  • cathyswraps

    cathyswraps said 8 years ago

    Several Seattle area brick and mortar shops and galleries owners recently gathered to share their suggestions for selling to retail stores. I thought I'd pass along their advice. It was unanimous, the more expensive jewelery sells better! The range $45-$90 up to $150. Further more jewelry has been a HOT seller.

  • PURDesign

    PURDesign said 8 years ago

    The article PLUS the resultant comments were most informative. Gathering information - coming to no conclusions . . . My thanks to all the crafty thinkers for sharing thier thoughts

  • lukesmom6

    lukesmom6 said 8 years ago

    I love this article and would love to put these ideas into practice but with yarn crafts it is really hard to figure out a price that will still keep my customers interested in buying. For instance, I have a 2 items in my shop right now that people rave about but I believe no one is buying because they feel the price is too high ( both are over $50) and this price is still way below what I calculated using the equation above... I really would like to raise my prices though!

  • studionancy

    studionancy said 8 years ago

    great advice. thank you.

  • nudeedudee

    nudeedudee said 8 years ago

    Very interesting challenge for us all! It's tough to compete in a marketplace where so many things are cheapened and mass-produced without heart. I get a lot of comments about my prices on my custom made clothing being high, and the people that really know what goes into making them yelling at me, saying I'm selling out the value of handmade work! I've seen a lot of copycats start producing exactly the same garments I'm offering at half or a quarter of the price, and I don't get it. Are they all right with paying themselves $1.50/hr? Maybe their product is worth it! I know my experience, design, and eye for fit matters. I can't tell you how many gals complain to me about crappily made garments, we're sick of it! We want quality and some folks can pay for it, so let's stick to that formula. There are also a lot of straight up sweatshop products on etsy, and sellers that have their clothes "custom made" in sweatshops in Asia and sent out from there, why is this allowed? It's hard to compete with 3rd world labor pricing.

  • MomsantiquesNthings

    MomsantiquesNthings said 8 years ago

    great article, very good point!

  • piedrastudio

    piedrastudio said 8 years ago

    I have always been a proponent of charging fairly your work, but according to this formula, a pair of simple earrings that I typically sell for around $35 would retail on Etsy for closer to $80. Not possible, unless you are thinking of paying yourself minimum wage.

  • OldSkoolProductions

    OldSkoolProductions said 8 years ago

    great article and advice!

  • littlestboutique

    littlestboutique said 8 years ago

    Thank you so much, for sharing this wonderful advice.

  • TenderLetters

    TenderLetters said 8 years ago

    Thank you so much for writing this article! The homemade business is a wonderful one--but pricing is so difficult. It's frustrating that customers can buy similar (but often crappy and mass-produced knock-off versions) of the items we make at big box stores for cheaper. But I'm not a machine--I'm a human being who loves to sew. I spend so much time and money finding high quality fabrics, trims and materials, washing them, ironing/steaming, designing one of a kind aprons, banners and badges, pinning, sewing, perfecting, taking pictures....And at the end of the day, it's hard to make a profit. I do make more sales when I undervalue my cost of production and labor. But that's not the way I want to do business! The most important thing to remember here on Etsy: If one of us undervalues his/her own work by pricing items too low, that affects All Of Us. That skews our prices down, and so those of us who are trying to make a tiny profit (or at least clear the cost and labor side of things with our sales) look like we are overpricing our items. I think our society has grown so used to buying Crap (Buying Lots of Useless Crap. For Really Cheap) that we've lost our understanding of quality, value, craftsmanship and work. Let's reclaim it, Etsy sellers! xoxo, Gina

  • Rose3jewelry

    Rose3jewelry said 8 years ago

    Wow! What a lot of wonderful and somewhat overwhelming information. I know I need to increase my prices to better cover my costs, but as many others have said--especially in jewelry-- there is a lot of competition, so there is a push to be competitive as well. I would love to price for those buyers with more $$, but I do also think that we are one anothers's buyers & how much can I afford to spend with you? Where are those buyers with plenty of spare money??? Send them our way! It is our never ending challenge. Here's to much luck for all of us!

  • hrblexpressions

    hrblexpressions said 8 years ago

    Great information!!! Thank you so much. I WAS thinking that I should make my creations affordable to everyone and couldn't figure out why it doesn't work. I've recalculated all costs and will be making changes today. Thanks again and here's to a great Holiday season for all of us!! Have a great day!!

  • Erbecky

    Erbecky said 8 years ago

    thanks for your tips. Like you said in your article, I find myself pricing things at prices that seem affordable to me. A little revaluation is coming...thanks!

  • jennifercottreau

    jennifercottreau said 8 years ago

    This is a great reminder! I've been pricing my work this way, but every once in a while I think about lowering my prices to be more competitive. We have to remember that our loyal customers appreciate our effort and talent. I worry that by lower my prices I'll also lower the value of my work. Thanks so much, I feel better (especially needed this time of year!). I wish everyone a successful holiday season.

  • MetroGypsy

    MetroGypsy said 8 years ago

    Always a good read with Danielle! :)

  • KapKaDesign

    KapKaDesign said 8 years ago

    Thanks for your article. All your suggestions are great. We often love to create objects of beauty, but dislike to even think about selling, marketing, promoting and such boring stuff. I am new to Etsy and I appreciate your great advice.

  • owlsay

    owlsay said 8 years ago

    I am so glad I made myself sit down and read this article!! I have really been struggling with some of these issues and kind of on the fence about the decisions I needed to make. This kind of helped me solidify what I was I was already thinking. Thanks again!

  • nellyvansee

    nellyvansee said 8 years ago

    Thank you so much for this article. I was debating today if I should lower my prices or not. I take so much times creating, polishing and packaging each pieces, I really take it at heart. My questions was, if I lower the price, I would sale more... probably, but would I be able to keep my high quality standards? Probably not.... Which is why I decided to keep the prices higher. Having a high quality product is really important to me.

  • jenhough

    jenhough said 8 years ago

    amazing advise as usual <3

  • BunieMaTreasures

    BunieMaTreasures said 8 years ago

    Thank You very much!!! I am a new seller (have not listed any items yet), and pricing items is a big issue for me right now. Some of my family told me that you could not really figure in your labor when pricing items, now I can tell them they are wrong.

  • josieadele

    josieadele said 8 years ago

    Great advice- especially about paying yourself a deserved hourly wage... I was told once to triple cost of goods, but I think it is best left doubled, if you are also paying your value in time!

  • RubyBarrDesign

    RubyBarrDesign said 8 years ago

    Great advice, thanks

  • NSpottery

    NSpottery said 8 years ago

    Pricing is so difficult! Its tough to compete with the mass produced goods out there, even if handmade is more special and higher quality. Thanks for the tips!

  • oficinadacor

    oficinadacor said 8 years ago

    Hi Although I´ve been creating for 3 years now, only the last year (and more and more lately) I am thinking about making a business out of it. I sometimes feel guilty regarding the prices, but the truth is sometimes I cannot really "squeeze" the prices even more (I charge less per hour than my cleaning lady), otheriwse I would not get a salary out of it. As I say "Maybe I don´t want to sell to everyone, but to those who can really appreciate this type of work".

  • AmongTheRuins

    AmongTheRuins said 8 years ago

    Fabulous article Danielle! Thanks for the wonderful insight. Time to rethink!!

  • elisabettacavagnino

    elisabettacavagnino said 8 years ago

    Good article!

  • neki

    neki said 8 years ago

    great article

  • BigMamaNebraska

    BigMamaNebraska said 8 years ago

    This sounds really good as I read the article, but I believe it won't work for most Etsy sellers. I primarily make sewn items. If I used this formula, my items would not sell as they would carry too high of a price tag. For a standard size quilt, I say it takes 20 hours to complete @15 an hour. Add to that $100 for fabric and supplies. That is $400 which equals to $800 wholesale and $1600 for retail. How many quilts would I sale for $1600? Right now it is hard to even sale them at just the cost of supplies. Even a simple tote would be over $100....with $10 for supplies and 2 hours at $15. Wholesale would be $60 and retail would be $120. I thoroughly agree we should be paid what we are worth but can the market place support this sort of pricing structure?

  • DuchessCreations

    DuchessCreations said 8 years ago

    Fantastic article! Great advice on how to properly price an item, and how much our time, talent, and creativity is worth, and how to take into consideration when deciding on a price. Love your formula! Very easy to remember. I will definitely take your advice as often as I can from now on. Thank you so much!

  • JanellsFlare

    JanellsFlare said 8 years ago

    Excellent advice! Everything you said is so true and I too need to do my homework and pay attention to my pricing.

  • mollymillerbyappt

    mollymillerbyappt said 8 years ago

    I agree with TassieDevilKnits, this is a tough formula to apply to knitters. I handspin all of my yarn before I knit it into my finished product, and if I applied this formula, and only charged minimum wage for my time (just the time spent crafting, not counting time for acquiring supplies, shipping items, keeping my shop updated, etc), an average scarf in my shop would cost $268. I sometimes dye my own fiber in part to bring the cost of materials down, but then I've invested more time. If I can cover my costs for the materials and have some left over for the time I spend lovingly crafting each piece, I'm satisfied.

  • cynthiawinogradsprit

    cynthiawinogradsprit said 8 years ago

    Thank you. Good advice.

  • WingbornRavenJewelry

    WingbornRavenJewelry said 8 years ago

    Great considerations to make for future items. Thank you!

  • BeadedJewelsbyTammy

    BeadedJewelsbyTammy said 8 years ago

    Great advice. Lots to think about. I've always had trouble with pricing... trying to have competitive pricing and still use the gemstones and crystals that I love. But as you said "price for them, not for everyone". Lots to think about. Thanks!!

  • FrutinobyMinghini

    FrutinobyMinghini said 8 years ago

    Sound advice! However when it comes to food items some other considerations should be made. Making candied citrus confections from scratch for each order as they come in is one way (the only way) not to have left over inventory. Love what you do! Believe in your product! Look for my blog coming soon.

  • dragon88home

    dragon88home said 8 years ago

    Great comment on not shorting yourself on the retail price. People saw that our prices were a bit more but, they saw how unique our pillows & throws were in fabric, quality and styling and our sales grew! Thanks!

  • UprootedWandering

    UprootedWandering said 8 years ago

    I appreciate the encouragement. Most importantly, the fact that I need to sell the item for people who are not me. That really helped me take myself out of the whole thoughts for sales and value my product better!

  • QwirkyWorks

    QwirkyWorks said 8 years ago

    i was just thinking perhaps i haven't sold any of my items because my prices were too HIGH, but when i reconsider, i know i put those prices where they are based on materials costs and my time in the first place... much to consider, thank you for your thoughts!

  • amberearrings

    amberearrings said 8 years ago

    Thanks for this blog, I had kept feeling like my prices were too high even though every piece is under 30 dollars and just one piece might take 1-4 hours to make and perfect. I have priced them so low because this is just my second month working and I am still perfecting my craft. Although, you did make me think about perfecting the image of my craft and personality in my business over slashing prices just for sales. Thanks a bunch for all the advise!

  • elaine1812

    elaine1812 said 8 years ago

    Be realistic there is a recession, lets make things at least affordable please.

  • LittleDropOfSunshine

    LittleDropOfSunshine said 8 years ago

    This makes me feel so much better about how we decided what to charge for our knitted and felted tote bags. We did a lot of research to see what others were selling theirs for but in the end, we decided that what we had was a good unique product. As Etsy sellers, we need to give ourselves some credit for the time and energy we put into handmade products!

  • BowDivas

    BowDivas said 8 years ago

    Wow! Thank you for the information!! I am just starting out and this was helpful!! :)

  • PrettyHairClippies

    PrettyHairClippies said 8 years ago

    I believe that this advice does not apply for my niche. Maybe there should be a small paragraph about that in the articles. My $2 hair clip featured in one of the Etsy finds emails received 300 looks and was purchased one time. It may be just me, but I wouldn't want to attempt to sell this item for $5.

  • dixiediva83

    dixiediva83 said 8 years ago

    I'm always questioning my pricing, definitely going to see what the difference would be if I apply that formula. Thanks!

  • nannysroom

    nannysroom said 8 years ago

    Thanks for the great advice! Pricing is the hardest to know what will work. I like to compare, with like items on Etsy. Try to stay not the highest, and not a give away;-)

  • 2kute

    2kute said 8 years ago

    Great article! I however, need advice on this: how can I charge what I think a hat I make is worth (I am an experienced crocheter with decades of experience), if I can search and find several shops selling a similar hat for $5 which does not even cover the yarn?

  • AvaGirlDesigns

    AvaGirlDesigns said 8 years ago

    I do understand the formula but how can you compete with people on etsy that when you price your item at $30 and someone with a similar item is pricing theirs around $10. I do not understand when something takes hours to make a single item and put in the cost for materials they are paying the buyer to buy their product because they are making no money on it! How can I compete with that?

  • staroftheeast

    staroftheeast said 8 years ago

    Math and creativity often don't go well together :) It is indeed very important to price your items correctly, if you do not value your items enough, others won't either. My heart breaks when I see amazing items for incredible low prices. I often hold myself to not convo a seller to tell them that they should raise them! People often question the quality of an underpriced item! And as you said so well, Danielle, if you offer it for too low, you won't be able to do wholesales, we often can't give a large discount! We too are guilty of underpricing some of our items, still a work in progress... :) Hmmm and about the formula, I don't really believe in it. It is hard to calculate the time you put into an item, and often it is not the materials, but also the 'idea' you asked to be paid for. How many nights do we spent hours thinking of a design :)? Thanks for a great article again!

  • GemdropsoftheFalls

    GemdropsoftheFalls said 8 years ago

    Like how this article is straight to the point, Danielle! Especially can relate to the "How to Compete" section. Love the quote "let them know what makes that item unique (and how owning that item makes them unique, too)." So true! We forget sometimes that these are handmade items, some never to be found anywhere else again because they simply cannot be duplicated. Thanks for the encouragement!

  • jewlzs

    jewlzs said 8 years ago

    Excellant article I couldn't agree more. My time is valuable and my craft is priced to reflect that.

  • iloveanabel730

    iloveanabel730 said 8 years ago

    Theres a thought... prehaps for my bracelet listings I will put how long it takes me to make. It takes aboout 45 minuets to make them. That should give it more value to the reader.

  • 4dollsintime

    4dollsintime said 8 years ago

    I'm new to Etsy and really found this helpful. Thank you for encouraging me to think outside my own budget box.

  • underanewlight

    underanewlight said 8 years ago

    oh Such as a great article I'm not sure about the prices yet on my shop, but I will make a brainstorming and recalculate it again {Just a little question did you count the time spent on photo shotting}. Thanks for sharing this is very helpful.

  • forthebettys

    forthebettys said 8 years ago

    this was all good and I am going to try and use it but my shop is vintage, not hand made. .... i will try though

  • AdeloCreations

    AdeloCreations said 8 years ago

    I have just opened my shop having in mind what i have read here some weeks ago...Although i didn't follow exactly the rules,your article really prevented me from common mistakes.Thank you really much for the advice ;)

  • prendasbyenid

    prendasbyenid said 8 years ago

    This is going to be hard!!! But my work worth it!!! Thanks!!!

  • mildajlingerie

    mildajlingerie said 8 years ago

    ..a lot of very good points - thank you everyoneand, especially Danielle

  • annyschoo

    annyschoo said 8 years ago

    A lot of good points from many of you. thank you for sharing. IT IS REALLY HARD for pricing I agree. I am never good with numbers. After realizing how much I HAVE TO pay for tax, I am still learning slowly to make it fair and balanced for both seller and buyer. I have noticed it is competitive and not at all a fair market as it is a worldwide market. Sellers from different part of the world pay differently for their material cost and labor. They are also facing different requirements on duty of paying tax, etc. I agree with the simple rule, buyers pay what they like with the price they feel comfortable. I kind of just create something I like and enjoy, sell or not.. it's the second priority to me. Silly? ^^ perhaps. I do appreciate those of you supporting handmade and create lovely things on etsy especially indie artists. One person's dream and courage against team or massive production. We are recreating the old way of making things that add so much value in it. Last, Everyone should have fun in this big market, both sellers and buyers. ^^

  • fergusod

    fergusod said 8 years ago

    I think my prices are quite reasonable but csnnot seem to get buyers. Anyone have any suggestions?

  • Alearea

    Alearea said 8 years ago

    I have been working on jewelry for over ten years, and I am very good at it. But I am a single mom, so I am afraid to quit my day job to work on Etsy (even though it would give me more time with my son and I would not have to spend on daycare. Though I have no doubt this pricing technique will work, my shop is still invisible to those who would by from me, so I have to keep prices low. How do I know when it is safe to start raising my prices to pay myself? How do I know when it is safe to quit the part-time job that was at one time a full-time as my hours are still getting cut back? I am feeling pressured at this point so any advice will be helpful and appreciated. Thank you.

  • BUbeunik

    BUbeunik said 8 years ago

    Thank you for sharing all the valuable info.. It is really helpful to new members like me:-)

  • dollladie

    dollladie said 8 years ago

    This is a terrific article. A friend told me some time ago, that if you price something cheaply, it will be perceived as being cheap. True. Although some of my items are created from "found" items, my time and the materials used to create them into works of beauty didn't exactly fall from the sky. I've modestly raised some of my prices to reflect that, but I'm also going to run a sale to try and generate some interest during (my first) holiday here on Etsy. Good luck everyone!

  • evolvinghabitat

    evolvinghabitat said 8 years ago

    Thanks! This article has been very helpful!

  • Japonpon

    Japonpon said 8 years ago

    This has been a great read, both article and comments. I find it useful to compare my own thoughts about how I should price an item and what I would pay for it if I were a shopper. My seller and shopper viewpoints are often very different.

  • PersonalizedGiftsbyJ

    PersonalizedGiftsbyJ said 8 years ago

    Thanks for this information. It has beem very helpful.

  • CrystalTree

    CrystalTree said 8 years ago

    Thank you for the great information.

  • Kkrizzy

    Kkrizzy said 8 years ago

    Thanks for the pricing advice. Our prices won't appeal to the shopper looking for a "blue light" special, but they will reflect the time and creative thought that went into each piece of jewelry we design.

  • zaisy

    zaisy said 8 years ago

    This is some good stuff that I can take in to consideration. Thank you so much, I needed this!

  • SonyaSpiral

    SonyaSpiral said 8 years ago

    Thank you for this insight. Not only does it give practical advice but encourages each artist to appreciate and value themselves more.

  • MarieYoungdesigns

    MarieYoungdesigns said 8 years ago

    Recently a friend of mine told me this "I can paint a picture and Picasso can paint a picture, which is worth more? People aren't paying for your stuff for the value of the materials and your time, they are paying for your unique artistry" It has helped me to value my work more and have more confidence in myself as an artist.

  • bri2004

    bri2004 said 8 years ago

    its so hard to put more money down and hope some one buys that item.. I have been told my prices are to high on some of my items and not high enough some other items.. its hard to find a right medium. but thanks for the insight and I will have to look at my items next weekend as we are travelign this weekend.

  • Hopeless

    Hopeless said 8 years ago

    Fantastic article - and such a relief to read I have been doing it correctly all along! I constantly agonize about my prices, and fear they are too expensive, but this is the formula I learned at fashion school, and really am relieved to see its what I should be doing. Its heartbreaking to see other very talented sellers short-selling themselves so much. I really would rather sell less for more, rather than sell a lot cheaply.

  • bleuherron

    bleuherron said 8 years ago

    bookmarking this one, great advice!

  • chocolatevanity

    chocolatevanity said 8 years ago

    wow such a great lens Danielle ;)

  • chocolatevanity

    chocolatevanity said 8 years ago

    Great Lens Danielle thanks ;)

  • marinaasta

    marinaasta said 8 years ago

    Thank you for the article!

  • marinaasta

    marinaasta said 8 years ago

    Thank you for advice!

  • AuntKarensCreations

    AuntKarensCreations said 8 years ago

    This is the best common sense advice that I've seen! Danielle you hit the nail right on the head! Thank you!

  • abbyhorowitzdesigns

    abbyhorowitzdesigns said 8 years ago

    What an eye opener, Danielle. Thank you!

  • VintageSeaShore

    VintageSeaShore said 8 years ago

    We all have a lot of reading to do. Thanks for posting this and other information.

  • Itsallperspective

    Itsallperspective said 8 years ago

    I had been debating with myself over the pricing as well. As much as I would love to give my handmade products a better price, but I felt maybe customers will find it too expensive.

  • RoseGardenStitches

    RoseGardenStitches said 8 years ago

    Great advice and might I ad the Words from the Bible that say: Luke 6:38 38 Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall [u]men[u/] give into your bosom.[u] For with the same measure that ye mete withal it shall be measured to you again.[u/] KJV When we are willing to pay a good fair price for others goods, then we shall also be paid well and fair for our goods. When we are tight with our dollar so that the seller makes no profit, we curse ourselves with the same on our sales. This is God's law for all men.

  • EireCrescent

    EireCrescent said 8 years ago

    Wow, this article was surprisingly handy! Your absolutely right though, we do have a way of under valuing our pieces and it's not exactly doing us any good! Thank you for posting this! Cheers! )O(

  • Marvidrio

    Marvidrio said 8 years ago

    This has been a tough thing to make a final decision on. Thanks for the excellent advice and for sharing with the rest of us:)

  • BellinaCreations

    BellinaCreations said 8 years ago

    Excellent article! This is one of the biggest issues I've had when viewing pieces on Etsy. I see so many people selling products for less then I can even buy the supplies and it's very hard to compete.

  • PhinnieandPais

    PhinnieandPais said 8 years ago

    Thanks so much Danielle! That is totally helpful! The section where you said that we have to price NOT for ourselves was a ZINGER!! ;) Thanks so much!

  • 4gatsu1

    4gatsu1 said 8 years ago

    I couldn't agree more with your words! Handmade quality items are in a totally different league than mass produced goods. Be true to yourselves and be proud of your talents! Thanks for the wonderfully insightful article! :)

  • nattirootz

    nattirootz said 8 years ago

    Thanks for the advice, I don't have to hold back anymore.

  • leonandcoco

    leonandcoco said 8 years ago

    Thanks so much for this. I have to forward it to my nagging mother, whosis always complaining that my work is too expensive and I know for sure, she wouldn't work for the rate I get...

  • SouthStudio

    SouthStudio said 8 years ago

    Great article. As someone who's new to Etsy and wants activity as well as just wanting to offer custom art to my fellow pet lovers at prices they can actually afford, I'm definitely guilty of under pricing. I know down the road I'll have to do some reconsidering though. Thanks!

  • AveryJasper

    AveryJasper said 8 years ago

    Awesome article. I have taken a long vacation from my etsy shoppe and this article was exactly what I needed to hear <3

  • retroreclaim

    retroreclaim said 8 years ago

    ahha..yes most artists are not great at selling!! I am so happy that etsy has blogs like this!

  • PamsBabyBakery

    PamsBabyBakery said 8 years ago

    Good article and great comments. I am brand new to this and think I am probably underpriced on my towels, guess I will have to rethink those prices...advice on when is a good time to raise your price?

  • BarbaraRosenzweig

    BarbaraRosenzweig said 8 years ago

    I am new to Etsy and have had difficulty with pricing, especially since I create watercolors. I'd love to charge for my time painting each piece, as you suggest, but even at minimum wage then no one would be able afford them. I take a long time to create each painting. What do other watercolorists do about pricing, besides taking the size of the piece into consideration?

  • SpaceAgeCeramix

    SpaceAgeCeramix said 8 years ago

    Great food for thought.

  • namienamie

    namienamie said 8 years ago

    Using this formula would make my phone charms unsellable... They *are* detailed, but no one is going to pay more than $20 for a phone charm...

  • SimplyUniqueBowtique

    SimplyUniqueBowtique said 8 years ago

    Great advice especially for a new Etsy Seller :)

  • CornerShopofLove

    CornerShopofLove said 8 years ago

    I CANNOT thank you enough for this article. I always enjoyed making my little boxes for my own projects, and thought I would have a blast making them for others. However, even though they've had only a small amount of success, I've found myself stressed at getting orders out with making only around $3-4/hr for work time. I wasn't even factoring time to gather materials or the cost! I'm going to be inspired by your article and just realize that to really enjoy making these boxes for others, I have to pay myself a little more, and just hope for success. Now, it will be a while before I get the nerve to use your formula, but thank you for the most valuable bit of information I have found as I struggle with how to make my shop successful, and how to make it something that is worth scheduling time for.

  • Watercolorsbywayne

    Watercolorsbywayne said 8 years ago

    If you decide to have a sale, and you have multiple items with all the same price say $75 each, do you have to edit the price of each or is there a blanket method? And if you do lower the price, does etsy charge you 3.5% on the orignianl price of the lower price?

  • melnoel15

    melnoel15 said 8 years ago

    I'm glad I finally read up on this. I think it will help a lot!

  • MVSart

    MVSart said 8 years ago

    I'm a little unsure about the pricing strategy. I currently have two items for sale at £30/$49 and £80/$130. If I use your equation I should be pricing them at £102 and £172. I consider my current prices to be ideal and a fair reflection but when browsing similar pieces and styles etc (of the same quality) I find that my prices vastly undercut them. Any help? I am selling my paintings on Etsy because I would find a certain satisfaction in knowing that someone somewhere has a piece of my work hanging on their wall.

  • MataTimur

    MataTimur said 8 years ago

    This is so helpful. Thanks a lot!

  • ColorBumpkin

    ColorBumpkin said 8 years ago

    I just read this article and loved it! My step-dad sells on ebay and won't make anything to sell he can't start at $.99. It's terrible how much he's losing considering the time he puts into it and then I find myself--as I'm about to start my own Etsy store-- falling into those same doubts that cut his profits so low he's making almost NO money. When in reality, you know what? My products are WORTH what this equation says they should be. So that's what I'm going to price them at! Thanks for the great article (and confidence booster!)

  • siamcollection

    siamcollection said 8 years ago

    great!

  • metalicious

    metalicious said 8 years ago

    love this article! Believe in yourself and your work.

  • GatheringSplendor

    GatheringSplendor said 8 years ago

    Holy cow I have a lot of reading to do here....Thanks for the help. It's sometimes hard to believe it can happen...but each day I see growth and that is exciting. Now I have to crunch the numbers again and be sure I am really on track.

  • BookmarkWhimsy

    BookmarkWhimsy said 8 years ago

    So how does one go about increasing prices to more accurately reflect the cost and work involved in making the product? A sudden increase with an explanation, or a more subtle approach--slowly increasing the price over time??

  • dylanadesigns

    dylanadesigns said 8 years ago

    common sense that sometime is hard to see, thanks for breaking it down this way.

  • richknobsales

    richknobsales said 8 years ago

    If you cannot afford to sell for half (or less) of what you have listed here, you are shorting yourself and cheating the rest of us out of a fair profit. Found out years ago at street fairs, if you don't price your stuff high enough you are perceived as selling CRAP.

  • rosiparri

    rosiparri said 8 years ago

    Priceing is by far the hardest decision for me. I will have to run these figures. thanks so much

  • chaosandlament

    chaosandlament said 8 years ago

    So glad you highlighted this article again. Wow this really helps since I never know how much to charge for my stuff. Time to redo my numbers.

  • Creating4Fun

    Creating4Fun said 8 years ago

    Thanks so much for the good advice. Definitely food for thought. Thanks again!

  • nahir

    nahir said 8 years ago

    Unfortunately these formulas don't work for me. In my case I use the best ingredients available, which are very expensive, including the shipping cost. It varies from person to person. I believe it depends on the products you are selling. The article is very helpful and interesting. Thanks so much

  • simplysuzie2

    simplysuzie2 said 8 years ago

    Thanks for the information. I have been really trying to figure out how to price things; this really helped !

  • nanopod

    nanopod said 8 years ago

    great pointers! pricing items still remains one of the most difficult things for me.

  • jennysporch

    jennysporch said 8 years ago

    Thank you for the article very interesting.I agree it depends on what you are selling and where you are shipping from. As a Fine Artist, I find it difficult to put a price on my labor . My paintings and sculpture can take weeks,months and sometimes years to create and my shipping costs are higher too, as I ship from Australia. On Etsy, its hard to sell art and compete, because some artists price their work way too low.Obviously some are not needing to make a living from their art as I do. My prices are lower on Etsy than in the real-time galleries, as I can eliminate gallery director commissions and agents fees. Your article got me thinking thank you....

  • FantasyJewelryGoddes

    FantasyJewelryGoddes said 8 years ago

    I always get stumped when its time to put a price on something lol. I find mydelf pondering....well would I be willing to pay that amount? Like you said in this article....your not always selling to you! I get that now and next time I feel Im charging to much ( I know in my mind that I normally under charge myself) but Im going to remind myself of your article Thank you

  • FantasyJewelryGoddes

    FantasyJewelryGoddes said 8 years ago

    I always get stumped when its time to put a price on something lol. I find myself pondering....well would I be willing to pay that amount? Like you said in this article....your not always selling to you! I get that now and next time I feel Im charging to much ( I know in my mind that I normally under charge myself) but Im going to remind myself of your article Thank you

  • art4ear

    art4ear said 8 years ago

    So many people commented on this, it's a big issue. I'm comfortable with my pricing right now, having a large range to choose from. But I can't believe some that sell for rock bottom prices to just make sales,what gives?

  • JoyCorcoran

    JoyCorcoran said 8 years ago

    Thanks for resending this on Etsy Success. It was nice to reread and re-evaluate my pricing process. We all need to be reminded not to under-value what we do.

  • WoodTransformer

    WoodTransformer said 8 years ago

    Thank you so much. I start reevaluating some of my prices and none of them were close to wholesale price. I bet if I add my real time for packaging and handling, wear an tear on my equipment I am probably not even breaking even. Thanks again. I sure hope I can turn this thing around. Can't last much longer at this rate.

  • JeSuisPrettyful

    JeSuisPrettyful said 8 years ago

    I loved this, thank you! It's making me rethink my prices now lol

  • What2ULike

    What2ULike said 8 years ago

    Great advice! I know I am guilty of selling myself short when if comes to my crafts. I will definitely rethink my pricing before I list an item! Thanks!

  • natalyboutique

    natalyboutique said 8 years ago

    awesome advice and great tips... natalyboutique.blogspot.com

  • sadiedesignsca

    sadiedesignsca said 8 years ago

    What a great blog post. It's inspired me to make my shop descriptions really special!

  • patlevey

    patlevey said 8 years ago

    Some very good info. My pricing was too low! I need to reevaluate.Thank you!

  • patlevey

    patlevey said 8 years ago

    Some very good info. My pricing was too low! I need to reevaluate.Thank you!

  • creationsbyks

    creationsbyks said 8 years ago

    This is great advice for most people, however as a knitter I believe this formula is way off base, as it would make all our our items super expensive. As a new seller though it does provide some things to think about :) still good advice

  • Giorgann

    Giorgann said 8 years ago

    Thank you for this help...I'm new on Etsy and my daughter who is an established seller suggested I might find your article helpful...and i have!

  • eaglenosetattoo

    eaglenosetattoo said 8 years ago

    Still trying to figure out the "right" price ... like how about many hours of labor would bring the price out of this world. Haven't sold a thing at low prices. My work is one and only ... not repeats ... like the knitter ... only one. Thank U.

  • RindowDesigns

    RindowDesigns said 8 years ago

    This is great advice. Thank you!

  • Belledazzled

    Belledazzled said 8 years ago

    Thanks for great advice and tips. To come up with right pricing on item is essential to bring in buyer, but some time it can be a struggle. Like the post.

  • Belledazzled

    Belledazzled said 8 years ago

    Thanks for great advice and tips. To come up with right pricing on item is essential to bring in buyer, but some time it can be a struggle.

  • ConnieKSalesArt

    ConnieKSalesArt said 8 years ago

    Thank you, this makes a lot of sense.

  • whimsy52

    whimsy52 said 8 years ago

    Thank you so much for your most interesting and informative article!

  • PitterPatterShop

    PitterPatterShop said 8 years ago

    I loved this! Thanks you so much for the advice.

  • fourteeneighteen

    fourteeneighteen said 8 years ago

    thanks a lot this is helpful.

  • FISHeFISH

    FISHeFISH said 8 years ago

    makes perfect sense to me

  • FISHeFISH

    FISHeFISH said 8 years ago

    makes perfect sense to me

  • maracujadesign

    maracujadesign said 8 years ago

    as an Esty-Newby, this is all good advice for me. Looking forward the many more support items like that - big thanks

  • bebeknits

    bebeknits said 8 years ago

    Great article! Pricing can be difficult. I put a lot of love and care into my baby items and choose high quality materials. I hope that my pricing indicates their value. I am disappointed when I see some under pricing their work in hopes of getting sales. It hurts all of us. Thanks again!

  • KnottyLoop

    KnottyLoop said 8 years ago

    Great article. This definitely gives me a baseline as to how I should be pricing. Many thanks for sharing.

  • CorreylDesigns

    CorreylDesigns said 8 years ago

    It is always good to remind ourselves that we are valuable as artists and that it is okay to speak out about our worth.

  • shellseye

    shellseye said 8 years ago

    Some of the best advice I've seen on this subject, thank you!

  • earthtoartceramics

    earthtoartceramics said 8 years ago

    If this formula were true then I would have to triple and quadruple my prices just to cover the labor, energy cost, and marketing time spent in trying to sell my product. As it happens, I'm lucky to cover the cost of material.

  • FunnyBoardGames

    FunnyBoardGames said 8 years ago

    I would have to price my checkerboard game 4 times higher if I would follow your advice ! Your formula is a good starting point but you also have to look at prices of comparable products and your target group and what they can afford/want to spend on your product. I produced 80 of my one of a kind checkerboards and I am not producing any more. My conclusion is that it cost too much to be able to sell it for the right price. Maybe we should turn our thinking around and start by looking at the price before producing a product. I know it is hard for artists not to be able to create what you want but if you want to run a business..........

  • DavisDomestications

    DavisDomestications said 8 years ago

    So insightful. I see things completely differently now. I would completely sold my items for way less than I should have! www.DavisDomestications.blogspot.com

  • RhiannonGagnon

    RhiannonGagnon said 8 years ago

    Thanks so much for the pricing formula...I'm always second guessing myself and changing art forms to find someone to appreciate my talents. This article has changed my POV...I won't be wasting my time any longer and I feel happy about who I am and what I do even more now :)

  • SarasDaisyLove

    SarasDaisyLove said 8 years ago

    This article and it's comments leaves me a lot to think about! Thanks for the pricing formula...now I need to go crunch some numbers!

  • RPurnellpics

    RPurnellpics said 8 years ago

    This was very helpful. Thank you!

  • akemanartist

    akemanartist said 8 years ago

    Holy crap! I just did the formula, with the help of my numbers husband, and he was right, I was undervaluing myself. The article brought to light a lot of things, my time on this is valuable. Time to change my pricing.

  • Enerjoy

    Enerjoy said 8 years ago

    Very informative article.....thank you!

  • bluestegosaurus

    bluestegosaurus said 8 years ago

    thank you. i'll be re-reading this until i get it into my head.

  • AllUnwound

    AllUnwound said 8 years ago

    elinadesigns says: "I have a problem with this formula. It takes me about 8hrs to knit a pair of fingerless gloves. If I value my labour at $10/hour (slightly over minimum wage here in BC) and my materials cost $4, my wholesale price should be (8x$10 + $4)x2 = $168. That would make the retail price $336. At the moment I'm selling my gloves with a little more than 10% of that calculated retail price. Not a way to grow the business... But I'm not sure what else to do." Nice article, but....I too am finding that this formula may not work with labor intensive crafts, like knitting. The market will not tolerate it. I'm checking out comparable items in other ETSY shops and a Target to help me figure out how to price things.

  • starmekcreations

    starmekcreations said 8 years ago

    Thanks so much. I have been looking for this for long

  • snugglebunnyquilts

    snugglebunnyquilts said 8 years ago

    I agree with elinadesigns! One hand quilted piece can take many,many days to finish. Thats just the quilting, not all the other pieces of the formula. Too many quilts on ETSY are WAY underpriced....I guess those artists don't feel their work is valuable.

  • raganella

    raganella said 8 years ago

    Thank you for this post. I thought I might be undervaluing my work, but now I know it!

  • raganella

    raganella said 8 years ago

    Thank you for this post. I thought I might be undervaluing my work, but now I know it!

  • CBJudith

    CBJudith said 8 years ago

    How, after all we have spoken of on this subject, is this possible: http://www.etsy.com/listing/72299303/frosty-natural-seaglass-earrings?ref=cat3_gallery_10 I may as well close down now, because I cannot compete with selling items for a listing price with sterling silver. Can someone please help me understand this? There are a ton of these shops on Etsy, BTW ???????

  • AllUnwound

    AllUnwound said 8 years ago

    CB Judith....WOW And in profile they say they sell at shops!! That site says silver wire not sterling...I bet it's just colored silver. Probably not even silver plated. Some other silver colored metal.

  • ORINewYork

    ORINewYork said 8 years ago

    I'm glad I read this today...I really have a major rethinking to do.... thank you for the article!!

  • GlassArtSeasons

    GlassArtSeasons said 8 years ago

    This is so tricky. I'm brand new to Etsy and I've been really struggling with pricing. I ended up setting the pricing extremely low (based on the above formula I should be selling at 4 or 5x the current price) because of the competition I saw for similar products. I hand-etch my glass jewelry rather than just fusing it, so it includes a whole step that others don't have, but I'm afraid that buyers can't really tell the difference and I don't want to price myself out of the market. There's so much beautiful fused glass jewelry on Etsy that it's hard to imagine being able to sell by following the above formula, there's just so many people selling way below that. I feel like I'm giving my jewelry away, and no one is buying, so how can I possibly raise my prices? Anyway, good article, I just wish I knew how to put it into practice and still be competitive!

  • nerdycraftgirl

    nerdycraftgirl said 8 years ago

    I am fairly new to Etsy (I've been on etsy for about 8 months now). I like to knit but the problem with knitting is that it takes a very long time but is just not as perceivedly valuable as, say, jewlery. It takes so many hours that if you multiply the hours + the material by four, your item is probably overpriced. Is there such thing as overpricing on Etsy? Do more professional looking items command higher prices?

  • Liduvina

    Liduvina said 8 years ago

    Thanks for the article Danielle!

  • LucyMarshallVintage

    LucyMarshallVintage said 7 years ago

    Thank you for this. You have boosted my confidence in my own prices. I know our pieces are worth the price tag I just need to convince the potential buyers.

  • KOKOBARUcreations

    KOKOBARUcreations said 7 years ago

    That's great advice... but I'm scared people won't buy if I charge the full price for some things. I've only been on the site since June and have been trying to figure out how to price...I know some things are under priced for the amount of time I've put into them. If anyone wants to have a look at my site and convo me with suggestions on pricing I'd appreciate it. Many thanks.

  • ManilaContessa

    ManilaContessa said 7 years ago

    Wonderful advice! It somewhat gave me an idea (and confidence) on pricing my trinkets. Thanks!

  • AishaShop

    AishaShop said 7 years ago

    Thanks for the tips. :)

  • ArtisticJem

    ArtisticJem said 7 years ago

    Thankyou so much, great insight : )

  • ZoeWithLove

    ZoeWithLove said 7 years ago

    Thank you for taking the time to write this. As a new etsy shop owner it's great advice! I'm looking for that happy medium, not over pricing nor underselling! Thank you!

  • whatthehartlikes

    whatthehartlikes said 7 years ago

    This is a great post about pricing and what one can do. If I charged per item according to this pricing calculation, my dish towels would cost about $35! I just find it hard to believe that someone would pay $35 for a dish towel.

  • MichellesFancy

    MichellesFancy said 7 years ago

    I appreciated your ideas on how special something you make is. I make a flower that I've never seen on any website but have lacked the confidence in myself. Thank You for that boost!

  • Viceversagifts

    Viceversagifts said 7 years ago

    First off, I am new to Etsy and hope to list items in the near future. With that said, I'm a rookie, and cherish all the wonderful articles and tips you offer. It has been a real challenge in this economy to try and squeeze out a profit for my business. My items do have a unique spin on them, but I agree with the blogger that mentioned that she could not sell her knit gloves for 300 + dollars. Are we not finding our core market or does this formula apply to a set group of design products? www.viceversaproducts.com

  • eolseiwear

    eolseiwear said 7 years ago

    Thank you so very much for this article, I had a formula for my price and count every penny and every minute I spent making an item but I had never accounted the time spent on shopping for supply and the like. My formula didn't include that wholesale/retail difference making my price usually even lower than the wholesale price too... Now, great advice, but how do you go about increasing your price? I can't just double every price on the items that have been in my shop for a while now can I? How do you go about the increase, please if you had that same situation and dealt or are dealing with it, I'd appreciate any and all comment you can give me. Thanks!!

  • rosaz

    rosaz said 7 years ago

    You spoke right into my brain and heart!! Your advice is such a treasure to me, now that I 'm about to start my own shop here in Etsy...Thank you so much!!

  • ancagray

    ancagray said 7 years ago

    wow! this article brought tears to my eyes. thank you for helping me realize i have been undervaluing myself and my work. i will start working towards remedying that. very grateful for the advice.

  • Adorewoods

    Adorewoods said 7 years ago

    D. With over 30 yrs experience as a professional craftsman your formula would stop sales instantly and you do not include rent and utilities for those who cannot work out of their home. I am happy to get, Labor plus Materials plus Overhead per hour x 1 and then retail x 1.5. Selling is still a fight and never sales on Etsy or any other on line media including my own site. Fortunately crafts fairs keep me going but without any hope of raising prices.

  • ZiaMargaret

    ZiaMargaret said 7 years ago

    it was just the advice i needed!!!.....sometimes i get confused with this item. Pricing is very difficult for creative people!!........Thanks!!

  • catfoodfever

    catfoodfever said 7 years ago

    thank you for this article! very informative!

  • MissEverGreens

    MissEverGreens said 7 years ago

    Great article.. I'm way under pricing myself..... :( Thanks for the tips!

  • DesignByMeg

    DesignByMeg said 7 years ago

    Truly a good rule of thumb, but I agree that not all of us can use that formula. Great article, and so many comments sure mean you hit home with many of us! I didn't read them all, but one thing I didn't see mentioned.... I believe that most (if not all) of us selling handmade items, first and foremost, LOVE what we do. I for one, started this for myself or gifts for family and friends... it evolved from there. We enjoy the whole process, everything involved in creating our works... as well as the finished item and making some money doing what we love. Can't think of anything better! Those of us who feel that we can't charge much for our time... well I can only speak for myself when I say, it's a labor of love, a creative outlet... and getting paid (even if not the big bucks) is a bonus! Good advice truly, if you're not able to keep up with the demand, pretty sure you're prices have room to go up!

  • velanch

    velanch said 7 years ago

    Thank you so much for your article!) but its very hard to increas prices, becouse I want my items to be sell and gives happyness to others!

  • ShadowsOfNature

    ShadowsOfNature said 7 years ago

    Oh I guess I should stop selling my sculptures at wholesale prices. Good thing I found this formula. I thought I WAS selling at retail prices. Thanks!

  • favorsforall

    favorsforall said 7 years ago

    Awesome advice!

  • YAFITIK

    YAFITIK said 7 years ago

    Great article. Just what I need to remember the value of my work. Thanks!

  • CINDAS

    CINDAS said 7 years ago

    Great advice. This is valuable information, when setting prices on new items. Thanks.

  • AnabellesAttic

    AnabellesAttic said 7 years ago

    Excellent article - thanks!

  • twentyseven27soap

    twentyseven27soap said 7 years ago

    Thanks, Danielle! I appreciate all the helpful training you do.

  • candlekane

    candlekane said 7 years ago

    Great tips - Thanks! Sometimes it is hard to remember to add our "creative" time & effort into our pricing.

  • LoopsJewellery

    LoopsJewellery said 7 years ago

    Excellent article! Thanks for the PRACTICAL specific suggestions!

  • vintagevirtu

    vintagevirtu said 7 years ago

    Thanks for the practical advice. As artists and collectors, we often forget that idea all together! I think the reminder that we are not always our target market is a great point to make. Thanks!

  • pienchips

    pienchips said 7 years ago

    Labor plus materials times 2? You're joking right? The major labels can get away with that, but not the everyday Joe crafter.

  • vintagevirtu

    vintagevirtu said 7 years ago

    Thanks for the advice! As artists and creatives its useful to have some practical advice. It's not always our strong suit. I appreciate the reminder that we are not always our target market. Cheers!

  • QuirkMuseum

    QuirkMuseum said 7 years ago

    This is great info. I wish I saw this 10 minutes ago.

  • drunkmansdaughter

    drunkmansdaughter said 7 years ago

    thank you so much for sharing your wisdom.

  • HandmadeHempMomma

    HandmadeHempMomma said 7 years ago

    I have a labor cost for creating items that is different than my time spent shopping,listing, taking pics etc. I price accordingly, but I do want to eventually sell my wearable hemp art, it does not sit well with me to just see my items sitting lonely, never getting to be worn and loved.

  • epiphanyartstudio

    epiphanyartstudio said 7 years ago

    Thank you for this -- an excellent article that hit my inbox at just the right time. <3

  • michelesner

    michelesner said 7 years ago

    Mystery solved! Thank you for a great article :)

  • boobahblue

    boobahblue said 7 years ago

    Thank you so much for all these tips....You have so hit the nail on the head when describing how "we artists" might value/price something...Great to have a perspective of how others may value our work.

  • DanburyLane

    DanburyLane said 7 years ago

    So true! We are artists who create pieces that will be loved and cherished. Too many crafters have closed their etsy stores because of a lack of funds and sales. Be true to yourself and your craft -your customers will reward your efforts. Good luck out there!

  • HiddenMeadows

    HiddenMeadows said 7 years ago

    If i followed this then i'm undercharging by $45 dollars for my handmade tweed wool scarf. But i guess that should be right since it takes two weeks to make them.

  • amyscreativecorner

    amyscreativecorner said 7 years ago

    Thanks for the advice. Pricing is one of the hardest tasks for me, so this was pretty helpful.

  • Rustilee

    Rustilee said 7 years ago

    Thank you! It was the boost I needed for a much debated idea of raising my prices. It was what I needed to hear. :)

  • terrysifeltlikeit

    terrysifeltlikeit said 7 years ago

    Thanks for the encouragement. Needed to hear that letting the buyer know why my item is special and worth the cost is the right thing to do. It's hard to toot your own horn but if you really want to make a living at what you love you have to value every little detail of what went into making it and that is so easy to overlook.

  • kickthemoonfarm

    kickthemoonfarm said 7 years ago

    Great advice and very true. One year on the show circuit I almost tripled my prices on my bigger items but kept the smaller items that I can make quickly lower. My sales were low on the big ticket items but they still sold and the lower priced items sold really fast, so I gradually raised those prices a bit too. Everything slowed down BUT still sold over the course of the shows, so in the end I made MORE and sold the same amount. What a lesson in marketing. Thanks for the reminder and confirmation, and the advice on telling why the customer wants to buy MY work. Super article, thanks.

  • Lynnaddison

    Lynnaddison said 7 years ago

    I greatly appreciate your knowledge shared with us here. These are things we artists know, but our insecurities show up when we go to put a price on things we put our soul into. Thanks for the little reminders!

  • SimplyUniqueByRLosco

    SimplyUniqueByRLosco said 7 years ago

    Very helpful! Thanks!

  • CharitableCreations

    CharitableCreations said 7 years ago

    Thanks so much for the great info!

  • CharitableCreations

    CharitableCreations said 7 years ago

    Thank you for all the great info!

  • LittleBeeStitches

    LittleBeeStitches said 7 years ago

    Thank you so much for this advice. I am preparing for craft faires and also getting ready to put some items in my new store and have been really concerned about the right pricing. Shipping costs seem to throw me some also...

  • beaglebeads

    beaglebeads said 7 years ago

    Having just been asked by someone about my "wholesale" prices, I'm realizing that I have no room to go lower, and certainly not half, of what I'm charging now. Hmm...

  • sproutingjubejube

    sproutingjubejube said 7 years ago

    a few months ago I had the same conversation with my sister. She simply said to me "are you high end or low end." I had to answer high end, she said good, cause if you're low end you're competing with places like Walmart, and you don't want to do that, they'll eat you alive! Since then my prices have gone up to reflect the time and detail I put into my work.

  • Elentiri

    Elentiri said 7 years ago

    I double the material cost to figure out a price also...but never had I thought of labour costs. With me the problem is I don't feel my time is valuable since I am doing this just for fun, so I am unable to put a value down for that.

  • FreshRetroGallery

    FreshRetroGallery said 7 years ago

    Your explanation in my words: over time, financially speaking, something that sells slowly at a higher price is equal to a higher production of something that sells quickly at a lower price. The difference is in the effort and time involved in the equation. It's all a balancing act. No matter what the price is, creating something people don't want to live without is the key to selling it. It's a matter of sustainability, patience and what the market will bear. Test the market - you're worth it!

  • larysadolls

    larysadolls said 7 years ago

    Thank you so much for sharing this information!!!

  • gentryscloset

    gentryscloset said 7 years ago

    Great points! I'm new to etsy...but definitely need to evaluate my pricing to make sure that it is fair, but at the same time worth it to me too :)

  • eaglenosetattoo

    eaglenosetattoo said 7 years ago

    Thanks for the tips. Ready to reprice many of my items that are unique pieces.

  • crest1954

    crest1954 said 7 years ago

    I really appreciate you putting this all together for us Danielle. I am dis-lexit, so it means a lot. I have been going to art classes and will be restarting the classes this month. I am not fast at things, and your words are an encouragement, as I do tend to be hard on myself for being slow. I still have a hard time expressing myself correctly on my items, as I am never sure what is expected of me to say about them. So I will be going through this book until I can get it right. Thank you for being here for all of us.

  • zeroto10

    zeroto10 said 7 years ago

    Really useful....some areas of my work I am quite good at pricing but those items that i produce adhoc I tend to under price.

  • SigalFJewelry

    SigalFJewelry said 7 years ago

    It's always good to reevaluate our prices every now and then. I had to raise my prices few times mostly because the material cost and because of the dollar rate compared to the Shekel which is the currency we use in Israel.

  • KeepingHome

    KeepingHome said 7 years ago

    I don't know if anyone has mentioned this, but it makes a difference whether you are purchasing your materials at retail or wholesale ~ especially if the materials are pricey. Here's an example: Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price (100 + 100) x 2 = 400 wholesale x 2 =800 retail. Or: (100 + 50) x 2 =300 wholesale x 2 = 600 retail. That's quite a difference. :-) It also makes a difference whether you are very skilled or just learning, whether the design is something you're experienced with or new, and whether or not you are efficient in your work.

  • FrutoDaEstacao

    FrutoDaEstacao said 7 years ago

    Danielle: You are so right!!! Thank you

  • TheMoustacheMan

    TheMoustacheMan said 7 years ago

    Thanks Danielle. This article is great and very helpful. I'm sure I speak for most when I say you're articles are appreciated. Thanks, Nick (TheMoustacheMan)

  • ElainaLouiseStudios

    ElainaLouiseStudios said 7 years ago

    Good article!

  • JaborandiGrove

    JaborandiGrove said 7 years ago

    Oh man - "You are not always your target market." It's like a light bulb went off! I keep thinking, "What would I pay for this?" Thanks for the tips!

  • creativecarvings

    creativecarvings said 7 years ago

    perfect time to read this article, for i know i am on my way out of my full time job , i look forward to doing step by step instructions in order to succeed . Thanks for the support John

  • PinkCoyoteJewelry

    PinkCoyoteJewelry said 7 years ago

    Good information on pricing! According to this article my unique wearable metal art is under priced. Perhaps I should say that if you want the ordinary, go to a chain-store!!!

  • QuiltingArts

    QuiltingArts said 7 years ago

    Great advise, never ever thought of this before. Thank you.

  • rileyvaughnstudios

    rileyvaughnstudios said 7 years ago

    This will help out tons!! thanks sooo much~ <3

  • aliptac

    aliptac said 7 years ago

    I don't know what I would do without this advice! Reinvent the wheel and learn the hard way maybe? Thank you!! This is why I love Etsy!

  • grabngogifts

    grabngogifts said 7 years ago

    WELL DONE! THIS ARTICLE WAS FOR ME! THANK YOU!

  • TheDescendingNude

    TheDescendingNude said 7 years ago

    This article has been a great help. I have been accused of under valuing my work in the past, even though I know the work ethic and time I put into it is worth more. It's about getting the right customer not any customer at any cost.

  • livebythesun

    livebythesun said 7 years ago

    OK, so I took the price plunge and my items are now priced...as they should be for the amount of work I put in! now I just need to hope other etsians and potential buyers agree!

  • martket

    martket said 7 years ago

    I keep reading this article all over again.. helps you feel better for what you do and who you are! Thank you Danielle! :))

  • amr1786

    amr1786 said 7 years ago

    Perhaps I am extra emotional but I am almost in tears after reading this, I feel so enlightened and oh so thankful to have stumbled across your post!

  • Sandyshop

    Sandyshop said 7 years ago

    Thank you, great article :)

  • UniverSoulWear

    UniverSoulWear said 7 years ago

    This really puts the pricing aspect of the business into new perspective for me! Ty so much! Great read! :)

  • OneLoveBaby

    OneLoveBaby said 7 years ago

    Thanks for the advice!

  • annettedupont

    annettedupont said 7 years ago

    Thanks for the great Advice. -Annette's Boutique

  • SimplyDaisyDesigns

    SimplyDaisyDesigns said 7 years ago

    Very interesting..I'm pretty guilty of pricing for myself too. Thanks for the tips.

  • SusiesBoutiqueTLC

    SusiesBoutiqueTLC said 7 years ago

    Very good advice. Thank you.

  • OlgaZuri

    OlgaZuri said 7 years ago

    Thank you, this is so important!

  • grayarab

    grayarab said 7 years ago

    I'm just getting started here on Etsy and finding that there is so much to learn....I am enjoying myself.....there is so much good advice here. Haven't sold anything yet but have had a lot of views and folks admiring my items. This was a great article. Thanks.

  • woodrt

    woodrt said 7 years ago

    Not sure this formula works. Even at 2 times cost and labor things don't sell. I get a lot of favorites and added to circles but no buyers. Tried featuring items and that just brings more "favorites" Am I missing something? Some projects I spend hours on and I am noot going to give it away. I have learned I can't charge for all my labor. Any advice would be appreciated. Thanks

  • 139Operations

    139Operations said 7 years ago

    Thanks for the advice. I have been pricing my work based on attracting the community of local artists. I thought. But it's true, artists know the value of creativity so I think some my more unique pieces are surely worth adjusting. Thanks again for the pep talk!

  • PinkShaw

    PinkShaw said 7 years ago

    Nancy and I at Pink Shawl have asked many of the same questions during the past seven months. We believe we have complied with many during our short stay; however, we yet have much work to do if we are to stay with Etsy. Nancy and I make nearly one-of-a-kind items, either in texture, shape, color or all. The signs out side our home says it all in simple terms- “Art You Ware” Over the years Nancy’s Knitting & Crochet (AKA) Pink Shawl has found that most people want to compare work of arts with commercial produced products that are much cheaper but are in no way art. Commercial is alright if you want to look just like ten thousand others. We firmly believe, as many others, that knitting and crochet is an art and should be valued as art. We use an often suggested formula; materials, labor, overhead to develop a price tag. The cost of materials includes all that goes into the construction less tools cost that is covered under overhead. Our cost for labor is derived based on the materials used; the more used the more time required in construction- over simplified I’m sure. Our labor is 3 to 4 times the cost of materials- we don’t whole sell one-of-a-kind items. We base our overhead on a percent of the cost of materials and labor. If we are around next year we can expect to have learned more about our business. For now all our sales goes back into our business. It is a hobby – Art if you please. Nancy and James.

  • andreamwl

    andreamwl said 7 years ago

    As a new shop owner, I find this article especially helpful. Thank you for your wise words!!

  • conita01

    conita01 said 7 years ago

    great info, thanks!

  • BonnetsBagsTreasures

    BonnetsBagsTreasures said 7 years ago

    Thank you for the advice on how I should price my art. You are so right; my art is lovingly created not mass-produced to look exactly alike. My creations have individual personalities. Plus even though my art is my hobby I can't give it away if I'm in business. I started selling at art fairs so I would have the cash to replenish my supplies. But now my husband retired and I'm close behind so the extra income is very welcome.

  • markehrmann

    markehrmann said 7 years ago

    this one comment sums up my whole experience as a jewelry artist. How difficult it is to value one's point of view. I have finally arrived at giving myself permission to spend time on my projects to advance, respect my point of view...... Thanks for the perspective. Why wouldn’t our buyers be willing to pay a little extra to own something special? Something we’ve been pondering and perfecting for weeks, months, years or decades. Your incomparable voice is the culmination of your creative life: your education, research, travel, dreams, personal experiences. This is valuable, so give it value.

  • ponylover31

    ponylover31 said 7 years ago

    This is great...and reading everyone's comments is helpful too! Glad to know there are other's out there that feel the same way I do, and it's great to read differing opinions as well....Long Live Etsy! :)

  • inesevidovska

    inesevidovska said 7 years ago

    Great advise!! Thanks!

  • evelynpwt5

    evelynpwt5 from evelynpwt5 said 7 years ago

    Great artical . Thanks

  • untamedrose

    Breanna from untamedrose said 7 years ago

    Ok but what about those of us...that my material costs...might be 5 bucks to make one item. but I had to invest 3k to be able to make that one item????

  • karensimpersmcdowell

    Karen McDowell from AprilShowersJewelry said 7 years ago

    This is very good advice. I have found starting my own business is alot of work and my reading this important information on the How too's for Etsy has been quiet helpful. I am so much looking forward to another adventure in life, of selling vintage, estate and custom jewelry on Etsy! Thanks so much!

  • AshleyBridgerDesigns

    Ashley Bridger Designs from AshleyBridgerDesigns said 7 years ago

    THANK YOU FOR THE ADVICE! Im allways wondering what to charge as my nursery artwork does take alot of time. I always have the frameof mind that people are here to find a good deal. after reading this article I will be rethinking some of my prices.

  • noahjulie

    Julie Noah from NoahsCraftCart said 7 years ago

    Very interesting formula, but I love it!

  • MakeMyClayAndThings

    Shia from MakeMyClayAndThings said 7 years ago

    .... i don't see a calculation here for overhead? or fees and taxes? i know this varies, but would it be multiplied by 2 as well or added in the formula somewhere?? thank you!

  • teryyo

    Tery from teryyo said 7 years ago

    Just re-reading this article again after a few months. It's definitely time for me to reevaluate how I do pricing. Thanks for providing a list of things to consider and to honestly evaluate to place a proper value on my work and product.

  • shreyasi22sharma

    Shreyasi Sharma from ShreyasiSharma said 7 years ago

    i wanted to price my items more because of the time i invest in making my stuff. but then i look at competition and they're selling cheap and well!!

  • SewSimplyFresh

    Kim Opoku-Ansah from StitchLightly said 7 years ago

    Wow I really want to quadruple the prices of my items in my shop but I'm just afraid that no one would buy them. That means I would sell a set of 4 reversible cloth napkins for $104! That just seems unreasonable. I guess I could try it since I'm just starting out and haven't sold anything yet.

  • theowlinthearttree

    The Owl in the Art Tree from TheOwlintheArtTree said 7 years ago

    THANKYOU DANIELLE It,s important for people to remember all those years they have trained and worked through ideas. Thankyou for giving them meaning again.

  • zenakire

    Zen Akire from ZenAkire said 7 years ago

    Thank You, I had somebody tell me my prices were too high and I was about to change them because I don't want to scare off future buyers in my shop. After doing the math, if I lower the prices my earnings will be $1.00 per hour and I would be losing money on materials. So thanks again, I will let my prices be.

  • MagpieAndGingerbread

    Genevieve Smith from LittleMagpieCo said 6 years ago

    This is wonderful advice, especially for someone like me who is just starting.

  • Jumboli

    Shereen Carson from MiniReeCreations said 6 years ago

    As a new shop owner reading this article makes me feel much better. I am yet to sell anything and I have just decreased my prices as I feel that I don't want people to be put off by the price.

  • AllyFashion

    Tina Giuntini from AllyFashion said 6 years ago

    I found that informative - I was thinking of a mass market competitor, but that is not realistic! Thanks, again.

  • zenophobe

    Tina Giuntini from BeaEvie said 6 years ago

    Thank you so much. I have found starting my own business is a lot of work and my reading this important information helped greatly.

  • UniquelyNew

    TCP from FlyingSpirit said 6 years ago

    FLYING SPIRIT SAYS: This was great advise about pricing and valuing ones time and energy . Thank you

  • yanivshimony

    BAD BALLOON from yanivshimony said 6 years ago

    Great article, good luck :)

  • byDelirium

    Angela from DeliriumAccessories said 6 years ago

    Thank you so much for this article!!

  • chicknfish

    Mellissa Uber-Lopez from MellissaUberLopez said 6 years ago

    Wow, got lots work to do!! Thank you for the pricing info's, its great. I been going back and forth with this articles ,Thank you.

  • lilisshop

    Lili Varga from lilisshop said 6 years ago

    Great article, thanks!

  • kjsdiddledaddle

    Kayla J. Rose from kaylajrosedesigns said 6 years ago

    I enjoyed article... referring to the formula given for wholesale & retail cost... do you really double your labor? And if you do than do you keep that extra labor profit or actually pay someone twice if not 4x the minimum wage/hourly wage that you offer them?

  • kjsdiddledaddle

    Kayla J. Rose from kaylajrosedesigns said 6 years ago

    I enjoyed your article... referring to the formula given, do you really double your labor??? And if so, do you pocket that labor profit or do you really give that employee the extra labor earnings which would be x2 if not x4 the minimum wage/hourly rate offered?

  • claysavant

    Holly and Lisa from ClaySavant said 6 years ago

    This article is over 2 years old and it's still making sense because it's the truth & I have to agree with every point made. Most things I've learned about business over the past 15 years has been summed up in this article. But I learned these facts the hard way over time. For all artists out there, do not undervalue yourself, this is so common and not at all necessary. Thank you Danielle!!

  • bradleycrafts

    Merli Bradley from BradleyCrafts said 6 years ago

    This article is very helpful. It's time to reevaluate my prices too.

  • thewatermelonfactory

    Mark Thomas from thewatermelonfactory said 6 years ago

    Very good and informative artlicle. Thanks!

  • tkfraley

    Twilla Fraley from TwillasTreasures said 6 years ago

    Thank you for much for this informative article. I am knew and trying to absorb as much of this information as I can. I will keep reading!!!

  • SIKIU

    Sikiu Perez from Sikiu said 6 years ago

    It doesn't get old, I found the answers to all my questions about wholesale pricing for my other store. Thank you very much!

  • marywebsurfer

    Mary Taylor from SewnbyNonnawithLove said 6 years ago

    After all the prodding by my family and friends, I will be opening shop on Etsy after I get back from vacation. I sew for children, mostly little girls, mainly my granddaughter and spend much time meticulously perfecting every little detail. I've been sewing since high school and love sewing now for my granddaughter. The biggest problem I have is figuring out how much time it really takes to sew a garment since I am retired and do a little at a time when I feel like it. I also embellish as I go along, so I have never really timed myself. I did however, try to reconstruct the material for the latest fourth of july romper I just made for my precious Emma and in materials along I'm already up to $26.50. That's not including any labor. I do believe I will be sewing for those looking more for boutique wear for their little princesses. When I doubled the materials to come up with a labor cost I'm already at $79 and that doesn't include additional labor for the buttonholes, collar, hadmade piping, leg trim, etc., which if I charged for that would bring my romper close to $95. It's a size 18-24 mos and the most adorable thing ever, especially with the heart applique and embroidery on the front. Am I pricing myself out of business before I start, asking $64.50 for labor? It would take at least 4-5 hours to recreate for someone else...that's only $12-$14/hour for my skills. Could use lots of advice on the pricing side of things. Thanks Danielle

  • paransora

    Soah Hong from Hongga said 5 years ago

    I just opened a shop. And I am also in dilema about pricing. It wouldn't be easy job. It is my babystep so much to learn. Thanks for great advice~

  • inbetweenaccessories

    InBetweenAccessories from InBetweenAccessories said 5 years ago

    Pricing! A really tough topic... Thanks for the tips! Really useful!!! xx

  • lrkinzel

    Glenda Kinzel from NibbleNabble said 5 years ago

    Love all your advice for a first time Etsy seller! Thanks a lot!

  • cowandbuggy

    cowandbuggy from cowandbuggy said 5 years ago

    I need some help. I see that other sellers have SALE listings, but I can't figure out how to put some of my items ON SALE. Can you someone direct me?

  • sprez

    Sue Prezkop from CrochetPlusbySue said 5 years ago

    Thanks the article was great. I'm a newby at this and was really at a loss where to start at pricing.

  • beckyharb

    Rebecca Harbottle from pieceofpaperuk said 5 years ago

    Such great advice. It's so easy to under price your work, I know I'm very guilty of it. Handmade is worth the investment :)

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