calculators yawn too

hi dearies!  today we are going to talk about pricing your items for your etsy shop.  so many of us underestimate the cost of our items, and not only do we suffer from it, but the handmade movement does as well.  when you charge lower prices, you create a lower-value perception- which, not only hurts your income but also makes other handmade artisans feel the need to lower their prices.  when you sell your handmade goods for income (i.e. want to quit your day job?) you’ve got to make a profit to survive- and you deserve it!

super teeny price tags

let’s face it- pricing your products isn’t easy.  and, unfortunately, there isn’t a go-to tried and true model to follow either.  it’s really more of an art that you have to have get a feel for.  but, let’s start simple.  first things first- you’ve got to cover your costs.  this includes:

-materials used in making the item

-packing materials

- etsy fees

- paypal fees

include everything you use, even the buttons you’ve had for years that your friend gave you- because ultimately, you could have used them for something else, but instead you decided to include them in your package.

factor in your indirect costs as well, that means costs that you incur from having to use machinery, printers etc.  shipping costs are listed separately on etsy, so all you have to do is make sure to correctly calculate the shipping costs and list them appropriately.

wool felt calculator

next, you need to consider your time, and pay yourself a wage (imagine that- pay yourself?!).  this includes designing the item, actually making the item and the time it takes for you to photograph the item, list it, package it and ship it.  this is where you need to decide how much is a fair wage to pay yourself? you deserve to be compensated for your time, and if you don’t counter this in to your price- you won make a profit.  most etsians aim to pay themselves between $12-$30/ hour.

green post tiny tags

danielle, an etsy labs admin, had this to say from her education at art school and her experience being a full time etsy seller:

“Here’s one way a professor of mine taught us pricing. Figure out how many pieces you make a day. Figure out what salary you need to be paid/would like to be paid.  Figure out how many pieces you can make in a year and then divide your desired salary by this and see what you come out with.  Most people will find they are selling themselves way short.”

wooden star house phone

here’s another formula that you might find useful:

{add the cost of materials + your cost of labor} x 150% markup = your wholesale price

{wholesale price x 100% markup} = gives you your retail price

have your own formula? leave us a comment to share what works best for you!

other helpful reads :: {three helpful pricing excerises} {price, you get what you pay for} {bundle up on your way to higher sales} {staying competitive}

wrap up: {etsy shop help}