When you are sure of selling your products at the correct price, and the quality speaks for itself, you should charge a better price for your handmade products. After all, it is your effort that has manifested into a beautiful product. It is quite reasonable for everyone to charge lower than usual to attract customers. But, when you charge lower prices for your products you are stealing someone else’s customer. On top of it, you are degrading your efforts. Therefore, the ones who are charging appropriate prices would be forced to bring down the cost.
Do you know that by selling your items at throwaway prices you will burn your fingers, ultimately? You will gradually have no taste for creativity. Moreover, in due course of time, the customers will thin away, and you will stop making and selling goods.
If you have charged a low price for your products, is there any way to find out the real worth of your products? Of course, yes. The three remarkable ways to know if you are selling at a lower price and they are the following:
1. Fix the Price After Understanding Your Competitors
Formulate a pricing strategy after studying the market and the competitor’s products thoroughly. Hasty decisions without a little research will undoubtedly have long-lasting adverse effects.
Try to study the demand and supply forces that work in your business. If you charge a meagre price for your product, you will, probably, drag horrible customers for your product.
2. An Advertisement Doesn’t Help in the Conversion Process
You might spend a lot on advertising. But, no one prefers to buy from you! The main catch in this is the people may assume that your product lack some quality that forces you to sell at meagre prices. It is true that reducing costs will help you greatly in the customer conversion process, in typical cases. But, in the Etsy market, the customers assume that low price means low quality. The one who is moderately priced or priced a little high will sell better.
3. Avoid Insatiable Customers
You might have left no stone unturned to make a quality product and sell it to the customers. However, they still denigrate you and complain about every single thing. Such customers are insatiable, and the best thing you can do is to avoid them. Never think they are genuine and reduce the price of your product for them. Thus, the best thing you can do is to prevent such customers and ask satisfied customers to give positive reviews about your product.
How Much Cost Does It Take to Sell on Etsy?
Listing Fee: If you want to sell through Etsy, there is a process called listing. The listing is the charge you have to pay to Etsy for the service they do for you. Once you pay the pricing cost, your handmade item will display on the website. When you create a listing on the Etsy website, you can sell your products for 4 months. You would have to pay a small 0.20 dollar price for listing on Etsy. You fund this price when 4 months has expired or when you sell your products.
If your products are not getting any sales, and you would want to renew the listing, you have to pay an extra 0.20 dollar price to Etsy. It is, again, valid for 4 more months. If you are selling knitted shawl, you can display the number of items you wish to sell to reduce the price you pay for the listing.
The reason is when you sell three items in a transaction; the website will charge you three times. This way, they charge many times if you have multiple items to sell through one single transaction. Every time you sell, the cost will reflect in your Etsy bill.
What Are the Other Costs of Selling Through Etsy Website?
When you carry out a transaction through Etsy, you would have to pay a fee of 3.5% of the price of the product you wish to sell.
Usually, the shipping fee is not included in the transaction fee. For the US and Canadian sellers who accept payment through PayPal or direct pay through e-bill can get shipping labels equivalent to postage cost for shipping their products to the customers. So, if you plan to add on additional features like a signature confirmation or insurance, the fee will go slightly up, and you will have to pay an additional charge for adding these features.
You have to cry out loud to make the customers feel your presence. You have to advertise heavily to introduce yourself and the product you wish to sell. For this, Etsy will charge an advertisement fee, which will be explained to you clearly, before you purchase an advertisement from them.
Payment Processing Fee
The website will charge a small amount for processing payment to complete your transaction. For calculating this fee, the tax and shipping cost is added to the original amount of sales and calculated on the final amount.
How to Price Your Etsy Merchandise?
Sum Up All the Expenses
You have to add up all the costs like the price of the material you are using, pricing fee, PayPal fee to come to the final figure.
Calculate Your Price for the Product
You have an idea regarding the amount you wish to earn per hour. Price your product according to the efforts you have put in + the time you have spent to come up with the product.
Come Up With a Pricing Formula
Materials + labor you have put in+ money spent + profit you want to make= the final price of your product.
To conclude, Etsy is a platform where you can sell your handmade products. The success mantra to sell here is not to reduce the price to up your sale. Instead, you should charge a fair price to sell your things. Furthermore, a high price is a synonym for high quality here. You will be quite surprised to notice the percentage of increase in the sales if you merely increase 1 dollar to the price you are selling at present. This price tip will help you to reap more profit in a short period.