A Basic Pricing Formula for Etsy & Handmade Business | Why you're probably pricing wrong.

Рет қаралды 17,432

Күн бұрын

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!
✨ If you need more help with your pricing, get access to my online workshop: The Art & Science of Pricing.
This workshop will teach you how to price your handmade goods. In it, I outline a 2-step process to pricing.
First, pricing with the 'Head' - this is the scientific part, which means crunching the numbers to see what you need to be charging in order to cover all your costs and make at least some profit.
Then, pricing with the 'Heart' - this is the artistic part, using research, emotion and brand positioning to arrive at a final number.
I know that pricing is one of the hardest parts of running a handmade business - and it's also something we need to revisit on a regular basis as our businesses and our skill level grows.
You should walk away from this workshop with a solid grasp of the pricing process, and how to apply it to your unique items.
This is available to members of the Thriver Circle - my membership community for makers who want to grow a thriving and profitable handmade business.
Not a member? Join the Circle here to participate in this workshop: thrivercircle.com/join-the-ci...
💡 If you enjoy this video, please consider giving me a thumbs up, and make sure to subscribe if you'd love more content on having a thriving and profitable handmade business, and a happy & healthy work-from-home lifestyle.
Thanks for your support!
Jess :)
#pricing #etsyprices #pricinghandmade
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Пікірлер: 36

@JessVanDen 2 жыл бұрын

@ubonrat8653 2 жыл бұрын

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

@JessVanDen 2 жыл бұрын

Fantastic! And thanks :)

@jen_crochetfun 2 жыл бұрын

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.

@nix_cosplay 2 жыл бұрын

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

@JessVanDen 2 жыл бұрын

Yessss... brain explosion! My work here is done "dusts off hands".

@user-qt8dg6tk9s 2 жыл бұрын

Jess thank you very helpful and enlightening

@ecouturehandmades5166 2 жыл бұрын

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 2 жыл бұрын

Love this! I had similar experiences with my jewellery pricing over the years.

@ecouturehandmades5166 2 жыл бұрын

@@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.

@CKww32 Жыл бұрын

You’re so helpful

@torimarshall7599 2 жыл бұрын

Really enjoying your content thanks Jess

@JessVanDen 2 жыл бұрын

Glad you enjoy it!

@gosleenrobson3487 Жыл бұрын

Watching from Papua New Guinea.. Your video has help me. Thanks.

@JessVanDen Жыл бұрын

Glad it helped

@christopherkingsland6120 3 ай бұрын

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.

@eyrestudio60 2 жыл бұрын

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 ?

@JessVanDen 2 жыл бұрын

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.

@LennyYT Жыл бұрын

Great video. Do you have best tips for giveaways?

@conniemann4944 Жыл бұрын

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!

@reneedimera5061 9 ай бұрын

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!

@Ajax-wo3gt Жыл бұрын

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.

@AussieMumVLOGS 3 ай бұрын

5:31 It makes it hard when the shops sell the same thing for $3 - $8 from a cheap store

@luch25ful Жыл бұрын

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.

@marqeetamitchell4061 2 жыл бұрын

How do I sign up for the free online workshop?

@JessVanDen 2 жыл бұрын

Hi Marqueeta, the workshop I reference in the video isn't free, but the signup details are in the video description :)

@balintbogi9018 2 жыл бұрын

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

@JessVanDen 2 жыл бұрын

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?

@balintbogi9018 2 жыл бұрын

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

@CJWright-auntiemoon 2 жыл бұрын

@@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.

@AussieMumVLOGS 3 ай бұрын

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 😊

@kanana09 3 ай бұрын

I believe a lot of them that can sell for 8$ with free delivery are resellers, not makers..

@AussieMumVLOGS 3 ай бұрын

@@kanana09 ohh