Friday, September 2, 2011

Etsy Seller's Tips On Pricing For Success

 New and experienced sellers sometimes have problems figuring out what the best pricing strategy for you, your type of products or customers isn't easy. If you have spent time researching the topic especially for online sellers there are differing opinions which can be very overwhelming,

Here is a summary of what Etsy sellers had to say about the subject of pricing for success*

1) Custom made - Sellers pointed out that custom made items definitely worth more. It's like a masterpiece of the creator thus must have special price. The only point to consider is how to come up with a special price that will not appear too much for the customers.

2) Niche - not all sellers have established their niche. Some sellers do make items that does not have target market - they started business out of hobby and come up with items out that were made out of their artistry and creative minds and sells them without target market.
3) Price computation - Basic computation of costs plus mark up is undestood by sellers, however, are they really able to compute all the costs incurred? Are you satisfied with the price you established? Are you making profits or do you end up feeling like you made a loss? Pricing is not about feelings, it's a formula based on actual, specific and measurable things. Most sellers also agreed that computing the target "annual" gross sales may not be realistic and applicable for all Etsy sellers since they thought they cannot price their products just to meet the annual target set earlier.

4) Business Plan - Sellers realized how important business planning is. Most of the sellers started their business without a real plan. This may be acceptable in the beginning, but as business grows, sellers need to learn how to establish a business plan that will help them focus on their business goals and will give their business a certain direction.

5) Pricing Techniques Varies - Not all pricing techniques are applicable to all sellers. While one specific technique may be applicable to one seller, the same technique may not suit correctly another seller. The most important thing is expenses are properly identified and inputted in the cost that includes cost of materials and operational costs and mark-up or profit is correctly imputed in the price of the item sold. At the end of the day, the price a seller established will determine if his/her business is profitable and successful. Even if all items were sold but at the wrong price - it has a big impact on the business.

*Opinions of Etsy sellers are not specific to one seller and are summerized from the Etsy forum.

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