How Do I PRICE My Products?! | Pricing for Both Retail and Wholesale Business
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- Опубліковано 8 лип 2024
- I often get asked, "How do I price my products for wholesale and retail sales?". This is a tricky subject, but it doesn't have to be complicated. I walk you through the steps I follow every time I launch a new product line. I also give visual examples for how I format my excel document when I'm tracking costs. ▼▼▼MORE INFO BELOW▼▼▼
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Please let me know if you have any questions about pricing in the comments below. This is a lovely community and seeing you talk to each other is extremely helpful and rewarding!
Videos Related to Selling Wholesale:
• Wholesale and your Bus...
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You have the most soothing, relaxing voice, I always watch other "how to" vids at 2x the speed just to get the info needed without having to hear them drone on forever, but I can just sit back, chill and listen to you talk forever. lol weird comment but oh well
Same)))))))))))))))
Not weird at all! I was thinking the same haha
She is beautiful. Insightful without being egotistical about it. I could watch her all day too but I’d better get back to work (sewing).
I thought it was just me. Her voice is very calm and easy to list to.
If someone is not willing to pay your price than their not your customer
then they're*
Lol-thats what I tell my daughter who said I charge too much! That same day someone paid over $80 for 2 heart rocks. See?
People will nickel and dime you if you let them. Do not let them guilt you into lowering your prices, especially if you have used a formula with concrete numbers to figure out your prices. Most people have no idea the work that goes into something unless they've done it themselves.
@@kimberlyjones6476 facts!!
@@kimberlyjones6476 this
Great tips! I made the mistake, in the beginning of my business, of pricing my candles too low while I was using high quality materials and wasn't sure why I wasn't making any money, even though I had plenty of sales. A year ago I did the whole equation and calculation and ended up doubling my prices. This gave me the opportunity to offer wholesale option, which has been my "bread and butter". If you price the product too low, people automatically seem to think it's made with cheap ingredients. I'm so glad I've made the change. I would love to see a video on how you pay your contract employees. Also, do you hire someone to go to craft shows with you? I've done a lot of craft shows by my self and a few with a friend, it's a lot of work if it's just you. Would love to hear your tips.
Thank you so much for this video! I've had a shop for about a year but am only recently working on it seriously (as before it was just a hobby). I've really been struggling with figuring out appropriate pricing and this video is really helping me understand what my products are worth!
Love how simple this is. Our businesses need to be sustainable and profitable
This video was so incredibly helpful! I've started watching your videos over the past few weeks, and I really love the advice you give, and your peaceful and honest tone. A breath of fresh air in the sea of intense shallow-seeming small business videos out there :)
+Allison Duvall yay! That's my goal and thank you for the kind and encouraging words!
This is great!!! Just the video I was looking for. I'm a visual person too, so this video was amazingly helpful. Thanks!
Tao! I'm super visual too! I was editing the video and knew I had to add the video of the spreadsheets. Thank you for the kind words!
Omg! Superrrrr helpful as I am expanding my business! New subscriber and follower!
I totally love your videos you have bless me with a wealth of knowledge 🙏🏾 👏🏾👏🏾👏🏾
Thank you!! This is THE most helpful video I’ve found!!! You laid everything out so clearly!!! Thank you!! Happy Wednesday!!!!
I LOVE using excel to help keep my pricing organized, in check, and justify my pricing. I have people on both sides of "you price too low" or "you price too high" but I just tell them I'm within the market, and this is what I feel comfortable with, I've got a ridiculous excel formula you can consult with if you don't like my prices. :D
LOVE this! Yes, I get that too. Especially at craft fairs.
this x100
Thank you, it's really helpful how you created this video. It's often overwhelming thinking about money and you made the process easier!
Thanks so much for your videos. They're great advice and it's well presented. When I started selling my jewelry I asked a couple of MBA/business consultant friends about pricing and they both said "time and materials plus 20%" Not helpful! LOL! It seems that was an industry standard back in the day and I still can't figure out how anyone made any money from it unless they really overvalued their time. I love your spreadsheet idea. It's how I've been pricing my merchandise and it's also been great for tracking profits. You don't need a lot of skills at first. Just learn the basic formulas and let the program do the rest.
This is so helpful. Thank you soooo much. ❤️❤️❤️
Thank you so much, you covered exactly what I was looking for. Super helpful.
Edit: Damn it didn't take me long at all to work things out. Thank you so much for the simple explanation.
Such great and generous information and you have beautiful art. Thank you for the grace. Happy Mother's Day !
thank you! helpful for me as someone just getting started on an online shop selling hand painted tees
Awesome tips, thank you so much for sharing❤️
I found this very helpful and gave me an insight into pricing. Keep your informative and well presented, thought out and timed videos coming. Sometimes other people go on and on about other things apart from the topic. Thanks
Thank you, Silvia!
Thank you so much....i am considering getting my Etsy shop (that has been sitting) back up and running. I've watched a few of your videos and plan on watching more. I create jewelry pieces, mainly bracelets at this time, but that could change. It looks like I now have a better idea as to how to get started. So again thank you.....☺
I have a very similar pricing system. But I love how you break it down - best breakdown I have ever come across and will adapt my to visually look like this spreadsheet.
+Studio Nelle yay!!! ❤️
Very helpful for this newbie here! Thanks!
Informative and honest advice!
My struggle with pricing is that I always have people on both sides that think that my prices are either too cheap (they think that my goods aren't as good as someone else's because my prices are cheaper) or my prices are too high (they aren't willing to pay for good quality handmade items, they want it handmade but they want to pay walmart prices).
I sell handmade crochet tops and bras. I (now, I recently raised my prices) charge $80 for my more delicate creations and $60 for the more common styles (that a lot of other people also make). That's the price that my tops and bras come out to when I just add up my material cost and hourly wage. I don't even factor in the cost of selling on Etsy. Nor do I do any multiplying.
I'm planning an entire overhaul on my Etsy shop with better photos, a new collections and better/easier sizing options but I'd love to know your thoughts on what I could do to improve my shop beyond just photos and products. Thanks for all your helpful videos, they're also super informative and straight to the point (and I like that lol)
www.etsy.com/shop/SmallTownCoven
This makes me realize how much I need to learn excel! I just started out and only did a 3 times my material and fees cost, but slowly I have been increasing the prices because I hadn't factored in the fees or my time because I was doing it for the passion but I've been busy ( which is so good ) but wasn't seeing much of a profit for my time. I appreciate these videos so much!!!
Love this! It takes time to find your pricing "sweet spot". Sounds like you are doing a great job! I am horrible at excel, but mastering basic functions can help so much. My boyfriend is a scientist and knows the program like the back of his hand. You can do so many complicated things within the program.
Giving your time monetary value is very important indeed!
Excellent suggestions! Thanks!
Great video Olivia Thank you!
Thank You, I'm just starting out and i was completely clueless.
People often forget when factoring the amount of time an item takes to also count in the time it takes to make tags, photograph everything (plus editing etc), writing descriptions, posting it all to numerous social media sites and coming up with all the hashtags etc. It may take you an hour to make 4 of an time but another hour or more to do all the work to get it online and promote it. If you worked for an employer you'd be paid for that time so pay yourself for it also. It's a lot at first but you soon find ways to streamline it.
Good point you mentioned!
Excellent video on Pricing your products.👍
Thank you so much, Olivia 😊
This is such a helpful video thank you. I find it so difficult to price things sometimes! It's so important though if I want my small business to grow. Look forward to more videos :D
Thank you so much for the kind words Rose!!!
Thank you so much for this video it was so helpful I’m going to save this
THIS IS SOOO HELPFUL!!!!! OMG now i just have to figureout my minimum and maximum and what percentage for my minimum
Amazing video and highly informative👍
Thank you for your videos they are so helpful!
Thank you so much!
Thanks. Very helpful.
thank you!!! this calms my brain :) my biz teacher said dont use formulas and my brain cant handle that lol
Your videos have been so helpful!! Can you do a video on how to set up an excel pricing sheet like yours?
Thanks
I have two pending wholesale inquiries, so I'm rewatching all your older videos :P :):)
Hi, thanks for the very informational and helpful video - I absolutely really REALLY struggle with anything that involves working out numbers haha and I have a question I hope you might be able to help me with:
I tried to include the fee charges added on top of the total of retail price (which is x4) + shipping, but then of course the fees will then be higher on the new higher total - if you get what I mean. So the profit I work out will not be quite right, it will actually be less than I've worked out. Is there a proper way to add them in or not really? (Sorry I really do suck at maths)
Can u imagine its 5:30 am in India and i found u today.....am hooked on ur channel Bringewatching all ur videos🥰🤗😙 ur aswm
Thank You Sister , for Help :)
Super helpful as always
Thank you Eva!! I NEED one of your new cow shirts. Can't wait for them to be up in your shop. Amazing!
Subscribed! Great channel
So do you suggest pricing items for repurposed materials? In my case, the materials may not have a direct cost, but my labor may be steep due to disassembling and assembling items. Miles are a factor as well because I may have to pick up donated items.
Even is i keep x2.5 also market and competitor prices are low. What shuld i do?
Thank you for making these videos! I love your energy and honesty. I am wondering if you have any resources or templates to use with google sheets to make simple product lists like the ones you had shown on your video. Thank you again for the time and energy it takes to make these videos!
I make & sell a $20 bath bomb :) lol, it has jewelry in it. HAHA! I know, I know, you were talking about price breakdown, but I just thought it was funny. Great video! Do you have a video that explains minimum order value (MOV) vs. minimum order quantity (MOQ) regarding wholesale? And the pros and cons of each? Or do you know a good blog post that explains it? Love your videos!
That's SO funny. I actually had the thought in the moment while filming the video, "what if someone makes a $20 bath bomb?!!". Love it! It sounds like you have A GOOD reason to price them that high. Your product sounds awesome. I don't have have a video on that but will add it to my list. Great question! Thank you!
Hi dear, what inventory software would you recommend for a type of retail business that buys in bulk/wholesale and then resell at retail prices? Something that records individual items by item in inventory, breakdown of costing, profit + markup and commission for sales reps.
Great advice!!!! Many people dont make a profit on what they sell!
i just got deep into my cost per unit this weekend..for the next craft season ( In florida..the indoor season starts in october) but i have to say i have to factor in my demographic as well.... I live on the west coast of FLA and there are a lot of Seniors and young families with not a lot of discretionary spending money ....and my price points have to in a certain bracket to make decent sales. I think demographics is a key if you are selling locally. But that was great info on the 2 wholesale 4 retail pricing...Thanks... Id love to hear more on how you incorporate other people in your production. I always look forward to your videos!!!
Yes! Of course. This is really important. Great points. Just make sure you're paying yourself!
Olivia Hayward how do you price crochet or knitting items? It takes around 5 hour to make a decent beanie, how would you price this item? Please help
Hey! Thanks for the video. Did you ever make a video about how to price paying contracted help? What you were talking about 3:50
Thanks again!
I tried combining 2 considerations (1- costing and 2-reservation price). After I ensured my costs could be properly covered, I started to consider the max people would pay (the reservation price).
Retailers said they expect apx 30% margin. So I decided that my retail price would be 70% of my reservation price. Does that seem OK?
I got laid off recently and now I’m looking to turn my quilting hobby into some sort of business to help make ends meet (while searching for full time and freelance work).
The labor and time that goes into making quilts will set the prices pretty high for each one. I’m anxious about pricing my stuff what’s it’s worth and setting it out of reach of most customers who only want to spend a couple hundred bucks on a quilt.
How do I find out if people actually pay what it’s worth?
Thanks your videos are helpful.
What is your experience with shipping costs for wholesale, I keep seeing older info saying shipping is paid by the buyer but newer info is making it sound like the seller also pay the shipping on top of the 50% discount? I have a metal works company, I've had a lot of requests for wholesaling items but our items are not cheap and Im having a hard time figuring out what to do. Any help and or advice would be greatly appreciated! Thank you!
thank u great video
Thank you Olivia
hi how do you make the excel sheet?
I'm sorry if the question seems stupid but for your retail markup, why do you times it by 4?
Thanks Olivia
Am I not thinking right but I don't understand the x4. Does that work for everything. Say I make a fabric sunglasses case it's cost with materials and time 13.50 if I times that by 4 it would be $54 no one would play that. I'm confused I need help lol
Great question! I will try to answer this in a Q and A video.
Did this question ever get addressed somewhere?? Seems like posting even a short answer here would be helpful, since it was asked a year ago, and I have NO CLUE whether or not you ever did a follow up Q&A video..... @@OliviaHaywardTalks
Thank u Olivia
Very, very helpful. Thank you! :)
this was an awesome video. i've been multiplying by two and so many people have told me to raise. YOUR EARRINGS A+++
YAY! Glad this was helpful. I know, it makes sense to raise by x2, but then if you sell wholesale or offer a discount you are limiting your earnings.
so helpful. i was like... wow. :)
Olivia, would you be kind enough to share tips on where to start when looking for safe places to buy in bulk for supplies? I am in need of something specific but don't know who to trust, where to start, for quality items. Any help to start is mucho appreciated, as always. Thank you. :)
What have you found is the best platform to start selling on
Question about prices online vs. selling at a craft show. I have my prices the same, but I recently noticed a fellow vendor who charged a lot more for her products in person than online. I kept my prices at the Craft show the same (sort of out of fear that someone would pull up my Etsy shop and say, "HEY - why is it cheaper online?"), but now I'm regretting that a bit becasue I paid a LOT for a craft show and then barely made my table back. Any quick tips or rules of thumb for prices at craft markets vs online?
Karen Styles the Etsy shop charges the customer for shipping but at the craft fair their is no shipping fee. So you could actually charge a little more and then offer a two-for or three-for pricing as a fair special. This boosts your overall sales for the day.
Is there difference between retailers and authorized stores? Or retailers are authorized stores?
Thank you so much for your helpful vids. I'm less afraid now lol there's so much too think about, but enjoying the research. I'm a sculptor and love doing this, so I wonder how much is my time worth hmmmmm Love your products shame I cut all my hair off.
I think you will probably know the worth of your hours by the feedback you get from people for your finished product and how quickly you sell. Also, it depends on competition in the market.
I might've missed it, but did you talk about factoring in packaging costs? or should you add that into shipping costs?
I think I missed it! I normally factor packaging into the overall materials cost. Thank you for pointing that out! Super important to calculate.
Thank you !
I agree cause I pack in reusuable gift boxes that run around $10 ea. Cause I prefer a high end feel to my shop and I need to recoup some of that cost..but then they didnt request me to pack that way, so is it fair I charge?
Great video
Thank you Tanya!
I raised my prices and sales have picked up as a result
What if the competitor is selling at low price and yours product is high. How do we get customers.
My thought was while you are introducing your brand and products to make it affordable so everyone to experience it and while it hits a good customer satisfaction thrn to raise the price a bit. Does that makes sense or am i wrong in some way.
I love ur videos and infos. Im a WAHM who makes handmades and sells them and still having challenges to streamline all.
It wuld be great if u share your time management in making products on day today basis with households and baby's stuffs in middle.
Its a constant struggle to do something with 2 kiddos at home. Thanks alot.
Love from Dubai.
What about overhead? Also, I don't think one should go by "industry standards" when pricing. It costs you what it costs you to make your product and if you lower that price you'll only end up losing money.
I charge alot for my Heart Shaped natural rocks - but the work and time involved to find them, clean them etc. So I have a price for my time..$20 an hour - lol, 1. Is okay to charge for the rock, not just my time, being that I didnt buy it - I found it?
i sell my crochet items...do I need to get a license to sell on line (i.e. Etsy, Facebook, etc)? any help would be greatly appreciated.
No, you just open a shop or make your own website and start selling. If you make sales keep track of expenses and profits for tax season.
What about the shipping fee?
Wait... price of the item to sell is $62.40, right? Half of $62.40 is $31.20. Is that the price wholesale business will pay you for your item to sell in their stores? Why was Etsy transaction and payment process fees not added into this pricing formula?
you should start n hole sale my wife do and it works very well
What exactly is "wholesale" and "retail". Not native English here. :) Help?
7:15
I make handmade jewelry. How much should I pay myself per hour
20$ I think.
Where is the $31 total coming from?
Hi
I did not hear you mention the creativity or Designing factor! Also different people mindset is different and are scared to price or will just price lower to gain more sales.. value pricing is another aspect that I think works well accordingly. not to mention China? How does a business grow multiplying by 2?
Kudos for the Video! Sorry for the intrusion, I would appreciate your initial thoughts. Have you ever tried - Panonnor Wordless Preeminence (erm, check it on google should be there)? It is a good one off product for getting designer or luxury merchandise at wholesale prices minus the hard work. Ive heard some unbelievable things about it and my old buddy Taylor at last got excellent success with it.
Cheers for this, I've been looking for "how do i find retailers for my product?" for a while now, and I think this has helped. Have you ever come across - Lanreenan Foremost Leverage - (just google it ) ? It is a great one of a kind guide for discovering how to find luxury or designer goods at wholesale or lower prices minus the hard work. Ive heard some incredible things about it and my work buddy got great success with it.
This was great, been searching for "how do i increase my wholesale sales distribution?" for a while now, and I think this has helped. Have you ever come across - Lanreenan Foremost Leverage - (Have a quick look on google cant remember the place now ) ? It is a good exclusive guide for discovering how to find luxury or designer goods at wholesale or lower prices without the hard work. Ive heard some pretty good things about it and my mate got amazing results with it.
Please get there faster. Thank you.
Why are you whispering. Makes me quench my eyes.
Too much talking just get to the point damm blah, blah, blah.
Just wonderful, been searching for "what is difference between retail and wholesale?" for a while now, and I think this has helped. Ever heard of - Lanreenan Foremost Leverage - (just google it ) ? It is a great one of a kind product for discovering how to find luxury or designer goods at wholesale or lower prices without the hard work. Ive heard some decent things about it and my cousin got amazing results with it.