Do you struggle with pricing your handmade goods? Trust me - you are NOT alone. Pricing is one of the hardest parts of starting and running a handmade business - and if you're selling on Etsy, even more so, if you're comparing your prices directly to other people selling similar things. Goodness knows my pricing was atrocious when I started! SO many makers (if not all) drastically under-price their work - especially in the beginning. Today I'm going to take you through the basics of pricing - not only giving you a few formulas, but explaining WHY they exist and what they are taking into account. I hope you have a revelation on pricing after you watch this one!
Thanks Jess, we spent the entire day yesterday driving around purchasing materials and this morning has been spent photographing products. Just paused for coffee whilst watching this video, crazy how much time is spent to create one listing. I enjoy the process still though and have made a spreadsheet to reflect all costs and margins , keep up the great work
So important! Great video! I began selling my kippot, determined the first price by looking at other Etsy sellers (kind of a mistake, but). Sold in just ten days. Yay! As I felt more comfortable making them, I raised prices for size and fiber. With every price raise, more sold (go figure). Then I got a request for wholesale. Due to a lot of things, it didn't happen (& hasn't been an issue since). Kept raising prices, getting return and multiple listing buyers, added better fibers, added designs...more sales. I have an original listing that I keep raising price & renewing; it still gets likes at 3x it's original price. Bottom line: do not undervalue your expertise! They (the buyers) can't or won't do it, so they come to lucky you.
@@JessVanDen We find the same attitudes with our home renovation business: the homeowners could do the painting, repair, flooring, etc. themselves...but just don't want to. As long as we can take our time (we're not spring chickens anymore, haha), the clients appreciate carefully done work. And we clean up after ourselves.
Good points. I am surprised you didn't mention taxes or etsy fees. 2X cost on a wholesale order doesn't even cover Etsy fees and income taxes, especially if you have an item that has low materials cost or is quick to make. I don't ever use the multiplier method. It has never worked for me because my overhead is usually a lot higher than my cost. I have to actually calculate what my overhead is for each item, plus add a little extra to help cover offsite ads and the possibility of free shipping for orders over $35.
Great video! You do an awesome job of breaking down why doubling the cost is important. I'm definitely guilty of not charging retailer costs, and I spend so much time on marketing and communication! Brain explosion is real
That's awesome, its a dream of mine to go to Papua New Guinea, I was in Sulawesi this past summer and absolutely loved it. Hopefully my business will get me there.
Another amazing episode 👏 My Etsy shop is mainly knitting and sewing based. For the knitting section I’m finding the pricing tricky as knitting most garments take quite a long time. I actually timed myself knitting a pair of adult socks and to price just for my time i would have to charge at least $300!! How do I price accordingly ?
An unfortunate fact of business is that sometimes, products simply aren't profitable, and we have to seek alternatives, or alternative ways to make them quicker/more cheaply if we can.
What happens when selling a product like a graphic T-shirt where there is really a cap on what someone is willing to pay. For example no one really pays more than $25-30 for a shirt so the key then is to get your pricing of supplies down enough to make profit that way right? Do you have videos covering that topic? Thank you!
I make handmade crochet hats from preemies to adults and the styles are animals Characters and regular hats. But I charge $15 without earflaps and $20 with earflaps and I was wondering if that is a good price or should I charge more!
If I'm understanding you, Jess, then there is no real way to know exactly what the price should be because I can't really account for the exact, to the cent, cost of using the internet for a given period of time, and then rolling that into the price of the item. I basically need to calculate cost price (materials + labour) and times that by 4.
I am so lost can anyone help me? I am trying to price some jewelry that I bought wholesale price. But I can figure out the price for each price. Can anyone help me please.
Its hard open Etsy store and to compete with other etsy stores that already have an established store and customers and offering Free postage. Do you know what i mean? If you sew a cosmetic pouch and try to charge 3x the cost of materials lets say its $15 for interfacing, fabric, zipper and then you see an already established etsy store selling the same thing for $8. Thats where us newbies struggle. We think, why would customers buy from a brand new etsy store and pay $15 for a handmade sewn cosmetic pouch when our competitor sells it for $8 AND FREE POSTAGE I think thats why new handmade sellers resort to " slavery " because they think it might be the only way to get their foot in the door 😊
Hi Jess, I recently found your channel, subscribed to your newsletter but unfortunately th password you provided to access the bonuses does not work. I asked for help via email but did get no answer. Would you please respond & help me out? Thanks! Balint
Hi Balint - the password has to be written EXACTLY correct - with the capitals and characters, and if you're copy-pasting, make sure there's no space in your copy :) I didn't get your email, it may have ended up in spam?
Hi Jenn, thanks for the super fast support!:) I have tried both: typing and copy-pasting and what happens is that I give in the password, hit enter, and nothing happens…the password disapears from the box and the browser stays on the same page, does not redirect me to anywhere…I will try to mail you again right now - not to overload this thread wit troubleshooting.. Thanks again! Balint
@@JessVanDen Hi, Jess., Your video is so helpful! It inspired me to go to your site and sign up, too. But, like the person above in this comment, the password you sent doesn't work. I tried it twice. Everything was input correctly. No error message comes up, just a blank space for the password. :( Can you check it out? I also emailed you.
Do you struggle with pricing your handmade goods? Trust me - you are NOT alone. Pricing is one of the hardest parts of starting and running a handmade business - and if you're selling on Etsy, even more so, if you're comparing your prices directly to other people selling similar things.
Goodness knows my pricing was atrocious when I started!
SO many makers (if not all) drastically under-price their work - especially in the beginning.
Today I'm going to take you through the basics of pricing - not only giving you a few formulas, but explaining WHY they exist and what they are taking into account.
I hope you have a revelation on pricing after you watch this one!
Thanks Jess, we spent the entire day yesterday driving around purchasing materials and this morning has been spent photographing products. Just paused for coffee whilst watching this video, crazy how much time is spent to create one listing. I enjoy the process still though and have made a spreadsheet to reflect all costs and margins , keep up the great work
Fantastic! And thanks :)
Very good video; thank you for valuable content.
So important! Great video!
I began selling my kippot, determined the first price by looking at other Etsy sellers (kind of a mistake, but). Sold in just ten days. Yay!
As I felt more comfortable making them, I raised prices for size and fiber. With every price raise, more sold (go figure). Then I got a request for wholesale. Due to a lot of things, it didn't happen (& hasn't been an issue since).
Kept raising prices, getting return and multiple listing buyers, added better fibers, added designs...more sales.
I have an original listing that I keep raising price & renewing; it still gets likes at 3x it's original price.
Bottom line: do not undervalue your expertise! They (the buyers) can't or won't do it, so they come to lucky you.
Love this! I had similar experiences with my jewellery pricing over the years.
@@JessVanDen We find the same attitudes with our home renovation business: the homeowners could do the painting, repair, flooring, etc. themselves...but just don't want to. As long as we can take our time (we're not spring chickens anymore, haha), the clients appreciate carefully done work. And we clean up after ourselves.
Good points. I am surprised you didn't mention taxes or etsy fees. 2X cost on a wholesale order doesn't even cover Etsy fees and income taxes, especially if you have an item that has low materials cost or is quick to make. I don't ever use the multiplier method. It has never worked for me because my overhead is usually a lot higher than my cost. I have to actually calculate what my overhead is for each item, plus add a little extra to help cover offsite ads and the possibility of free shipping for orders over $35.
Great video! You do an awesome job of breaking down why doubling the cost is important. I'm definitely guilty of not charging retailer costs, and I spend so much time on marketing and communication! Brain explosion is real
Yessss... brain explosion! My work here is done "dusts off hands".
Jess thank you very helpful and enlightening
What if my retail price is already expensive for my market target, what to do then? Pricing is a struggle for me.
Watching from Papua New Guinea..
Your video has help me.
Thanks.
Glad it helped
That's awesome, its a dream of mine to go to Papua New Guinea, I was in Sulawesi this past summer and absolutely loved it. Hopefully my business will get me there.
Really enjoying your content thanks Jess
Glad you enjoy it!
Another amazing episode 👏
My Etsy shop is mainly knitting and sewing based.
For the knitting section I’m finding the pricing tricky as knitting most garments take quite a long time.
I actually timed myself knitting a pair of adult socks and to price just for my time i would have to charge at least $300!!
How do I price accordingly ?
An unfortunate fact of business is that sometimes, products simply aren't profitable, and we have to seek alternatives, or alternative ways to make them quicker/more cheaply if we can.
5:31 It makes it hard when the shops sell the same thing for $3 - $8 from a cheap store
You have to focus on little things that can set your shop apart from theirs
You’re so helpful
Great video. Do you have best tips for giveaways?
What happens when selling a product like a graphic T-shirt where there is really a cap on what someone is willing to pay. For example no one really pays more than $25-30 for a shirt so the key then is to get your pricing of supplies down enough to make profit that way right? Do you have videos covering that topic? Thank you!
I make handmade crochet hats from preemies to adults and the styles are animals Characters and regular hats. But I charge $15 without earflaps and $20 with earflaps and I was wondering if that is a good price or should I charge more!
If I'm understanding you, Jess, then there is no real way to know exactly what the price should be because I can't really account for the exact, to the cent, cost of using the internet for a given period of time, and then rolling that into the price of the item. I basically need to calculate cost price (materials + labour) and times that by 4.
I am so lost can anyone help me? I am trying to price some jewelry that I bought wholesale price. But I can figure out the price for each price. Can anyone help me please.
Its hard open Etsy store and to compete with other etsy stores that already have an established store and customers and offering Free postage.
Do you know what i mean?
If you sew a cosmetic pouch and try to charge 3x the cost of materials lets say its $15 for interfacing, fabric, zipper and then you see an already established etsy store selling the same thing for $8.
Thats where us newbies struggle. We think, why would customers buy from a brand new etsy store and pay $15 for a handmade sewn cosmetic pouch when our competitor sells it for $8 AND FREE POSTAGE
I think thats why new handmade sellers resort to " slavery " because they think it might be the only way to get their foot in the door 😊
I believe a lot of them that can sell for 8$ with free delivery are resellers, not makers..
@@kanana09 ohh
Hi Jess, I recently found your channel, subscribed to your newsletter but unfortunately th password you provided to access the bonuses does not work.
I asked for help via email but did get no answer.
Would you please respond & help me out?
Thanks!
Balint
Hi Balint - the password has to be written EXACTLY correct - with the capitals and characters, and if you're copy-pasting, make sure there's no space in your copy :) I didn't get your email, it may have ended up in spam?
Hi Jenn, thanks for the super fast support!:)
I have tried both: typing and copy-pasting and what happens is that I give in the password, hit enter, and nothing happens…the password disapears from the box and the browser stays on the same page, does not redirect me to anywhere…I will try to mail
you again right now - not to overload this thread wit troubleshooting..
Thanks again!
Balint
@@JessVanDen Hi, Jess., Your video is so helpful! It inspired me to go to your site and sign up, too. But, like the person above in this comment, the password you sent doesn't work. I tried it twice. Everything was input correctly. No error message comes up, just a blank space for the password. :( Can you check it out? I also emailed you.
How do I sign up for the free online workshop?
Hi Marqueeta, the workshop I reference in the video isn't free, but the signup details are in the video description :)
I come here for Jess, she's hot! But the info is pretty good.
and smart too!
@@dianevanderlinden3480 Impressively so.