How to Price Your Items like a PRO on Etsy ?
How to Price Your Etsy Products
Setting prices for the items you sell can be challenging. While online venues such as Etsy provide an outlet for you to sell your items, it's still up to you to price your products effectively. There is no perfect method to price your Etsy products, but there are things you can and should take into account when setting your prices. Here are some things to consider.
Be aware of Etsy's rules related to pricing.Etsy's Dos and Don'ts section covers Etsy's rules on pricing products sold on its Web site. Although Etsy gives you considerable latitude in how you price your products, there are a few rules you must follow:
- Prices are to be reasonable for the listed items; the price should reflect only the item being listed. (Shipping costs are considered as separate from the price, but also need to be reasonable for the items sold.)
- Prices should not be an attempt to avoid Etsy's fees for listing the item, such as listing an item for sale for less than the actual purchase price.
- Prices should not be artificially high to keep the item from being sold.
- Custom order" items are to be listed with a set purchase price. If there are factors that would affect the price, such as different sizes or styles of clothing, each variation must have its own listing with the price specified.
Examine your costs.How you price your Etsy products should allow you to make back the costs you incur in making them, or the cost price. Costs break down into direct, indirect and labor costs.
- Direct costs include the costs for the materials you used to make the item, the cost of packaging, fees to list it on Etsy and fees to PayPal to handle receiving payment for the item.
- Indirect costs include the cost of equipment used to make the item, such as a weaving loom or renting time at a darkroom or recording studio.
- Labor costs are the hourly rate you figure your time is worth. Labor should include all the time spent to make the item, including time working on the item while doing something else, such as sitting in a doctor's waiting room or watching television. Labor should also include the time preparing the item listing on Etsy, developing your marketing plan and shipping the item to the customer.
Identify your target customers.You may know what you would pay for the products you make if someone else were selling them, but you may not be that similar to the people who will actually buy them. If you can identify which customers are willing to pay more for your creations over mass-produced versions, you can price your items in a range they're willing to pay and which will earn you back your costs, plus a profit.
- Once you've identified your target customers, you'll need to market effectively to those customers to justify your price in their minds. You can write item descriptions that describe your creative process in general or specifically what went into making the item, or you can tell them what makes the item a one-of-a-kind and how they'll feel special owning one.
- Look at the price ranges your customers are likely to spend when buying gifts for friends. It's possible to lose out on sales by pricing yourself either too low below the minimum amount your customers want to spend or too high above the maximum. Customers often think about target prices in common figures like or , instead of offbeat prices like or .
Look at what your competition is doing.See how other, more experienced, Etsy retailers with items similar in quality to yours price their products. Their prices should be in line with what you figure your price should be, based on what it costs you to make it. If it looks significantly lower, look at what you can do to lower your cost to make the item or express in your descriptions what about your items justifies a higher price than your competitors.
- Look at prices for mass-market versions of your items, if such exist. You don't want to compete with those prices, but you can use them to weed out any of your competitors whose price is too close to the mass-market price from your evaluation.
Think about a wholesale price before you're approached for a wholesaling deal.If you are selling what you think will be a popular item, anticipate being approached by someone who wants to buy from you in bulk for a discount ranging from 30 to 60 percent. You will make more profit per item selling by retail, but you may sell enough items on a wholesale arrangement to equal or exceed the profit.
- If you normally sell an item that costs you to make for retail, your profit per item sold is . If someone places an order asking for a 50 percent per item wholesale discount, the wholesale price will be and your profit per item will be only . You'll need to sell six items wholesale to make the same profit you'd make selling one item retail.
- Some sellers raise their retail price so they can make an acceptable profit on a wholesale discount. In the example above, if the item costs to make instead of , a 50 percent wholesale discount on a retail price of would mean you'd make no profit at all, no matter how many items you sold. Raising the retail price to would give you a .50 per item profit on a 50 percent wholesale discount.
Consider a bundle price for selling related items together.Offering a discounted total price for two or more items sold together, or offering a free item with the purchase of one or more related items, can encourage people who value one item in the bundle more than another to buy the entire bundle, or it can simplify a difficult buying decision.
- Bundling works best when the bundled items logically go together, such as a baby's onesie and bib or women's shoes and matching purse.
QuestionHow do I send a custom order?wikiHow ContributorCommunity AnswerIf a customer contacts you, in the right hand corner of the messages you will be able to see a button that says "Make this a Custom Order." Click on that. You will be able to start filling out the information for a custom order. If you don't see the button, have the customer request a custom order. To do this, have them go to a listing that you give customers the option to request a custom order from. Right below the picture, they can click on "Request a custom order" and have something made just for you. It will start the custom order process.Thanks!
QuestionHow do I list multiple prices on one listing?wikiHow ContributorCommunity AnswerGo to your "Listings" tab. If you want to create a new listing, click on "Add New Listing" in the top right-hand corner. If not, click on a listing that you have already made. Scroll down until you see black, bold words stating "Inventory and Pricing." Click "Add Variations" and select the variation you would like to add. You may have to manually add your options. Underneath that, It will have a list of 3 options with check boxes in front of them. Select the one that says "Prices vary for each..." Click "Save and continue." You will now be able to enter different prices for each variation.Thanks!
- A good rule of thumb pricing formula is to set your wholesale price at twice the total cost of labor and materials and your retail price at twice your wholesale price. The considerations noted in the steps above may outweigh this formula, however.
Video: How Do I PRICE My Products?! | Pricing for Both Retail and Wholesale Business
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