I currently just take my cost X 2 for the selling price and people say they love my stuff but even at that low of a price some say it cost too much. Without a doubt, psychology is an important part of pricing. There’s kiln running costs to consider as well. Leave a comment and let me know. I will actually try Blaire’s suggestion about shipping upgrade specials!! My jewelry is labor intensive, and I don’t want to pay my self $10 an hour. I ‘ve started making appliqué jute tote bags and sell them on ETSY since 2011. Well thought out strategy. My site is so niche-y that that aren’t comparisons. If you plan on selling your products to other retail stores, you’ll also have to take that into account. for example, a necklace cost me $11.68 to make (using GF and SS materials…but a very simple piece). Pricing low could mean pricing yourself out of a sale. I’ve had customers buy something AFTER a discount special has gone off or customers not use a coupon code on their order purposely. What if the material cost changes everyday? Many are content to just bring in a little extra hobby money to augment the household income . i do already wrap it up in a gift box, but i don’t know if that really counts. That’s why it’s important to keep an eye on the market and your competitors. I SO agree with Andreaa…..this issue is bigger than any one person. Any thoughts would be appreciated. And the reason for doing this would be so that some shop owner can also make money for themselves selling my goods? According to Inc. “Loss-leader pricing is an aggressive pricing strategy in which a store sells selected goods below cost in order to attract customers who will, according to the loss-leader philosophy, make up for the losses on highlighted products with additional purchases of profitable goods.”[*], Patagonia is a perfect example of loss-leader pricing done right. Because most businesses produce multiple products, their accounting systems must be very complex and detailed to keep accurate track of all direct and indirect (allocated) manufacturing costs. So What do I charge for someone who wants to buy 50 units not alot of units but she’s just starting a new venture as well and it could build. Thank you for a great article! I feel like that is super high for a new artist with only 12 followers. Pricing your products fairly tells consumers that you have a quality product to offer, so start spreading the news. These are often referred to as variable costs. We manufacture a high-end decking material (new to the market) and have just decided wholesaling to retailers is the direction we want to head. Pricing my products has always been difficult for me, even after 28 years in business. When they mark it up, it goes to the price that I sell retail. So many mass produced, yet “handmade” (my butt!! It can help you see: all of the costs involved in making and selling your handmade items, where you can be more efficient, how much you need to charge to make a profit, and whether you can actually sell your particular product profitably. If I priced this according to your formula my wholesale price (if I charged $30 per hour for labor) would be $190 and my retail price would be $380. On my website an in my salon I have set prices but to wholesale I’m stuck. Here’s how it might look for eCommerce businesses in action: It’s not just services like Uber that take advantage of dynamic pricing to maximize profits. This helped me out a lot. Filing your taxes each year is the perfect wakeup call to really LOOK at your costs vs. profits and decide if you are content with what you see. I follow the pricing strategy you outlined above. I would love any feedback as to what you think is fair for pricing. Post this article at least twice a year! Sometimes I would like to be rude, but … I always reply with patience! We have sold a couple but not many, even though we often get great comments. Everything from stock market fluctuations and employment rates, to new laws and trends, can affect the price that people are willing to pay for your product. Why should other people be making money from my hard work? In the end, the real loser in the situation is the under-charger. 2. This is just a starting point…. With my slight increase I’ve seen more sales trickle in. Be proud of your work, work hard to find your customer base that correctly values what you make, and above all do not collaborate in your own exploitation. I put this in a question because this is the dilemma I’m facing right now but want to learn as much as I can so I can create a fair pricing structure for myself on future orders. If it takes your price above what other Etsy sellers are charging, that’s ok, but you want to make sure that you’re offering something “extra/special” so they are more likely to go with you. Great post and you hit the nail on the head, women undervalue their work and time, I wish everyone would read this! I am a little nervous but, I keep reminding myself it as a way of honoring my business and myself. Learn how your comment data is processed. Are you going to use a fulfillment house to ship your products or are you going to ship them yourself?