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Etsy Tips: Pricing your products for profit

What are you charging for your creative products? On Etsy or otherwise, doesn't matter. I would bet you it isn't enough. The thing is... YOU wouldn't ever pay what your item is worth because you can make it.

You are not your ideal customer.

Let me repeat that... YOU are not your ideal customer.


Your ideal customer thinks that what you create is amazing and wonderful, in part because they couldn't (or don't care to) make it themselves. You need to be pricing accordingly.

I know I, for one, am always tempted to set a price based on 1) what other Etsians are charging, 2) what I would pay for such an item, and 3) how much it feels to me like it's worth. While I think my gut feelings are usually pretty trustworthy, I'm beginning to wonder if, where money is concerned, I'm a little scared to charge what something is worth.

How do you know what something is worth?


It's all about perceived value. Not cost of materials. A purse can retail for $10 or $30,000 - both are made with approximately the same materials.

Perceived value is very important. What would your ideal customer pay for your item?

Visualize where you want to be in 5 years.


At the risk of sounding like a yogi, take a minute to envision your ideal "work" situation, whatever that means to you, five years from now. Where are you? What are you doing? What equipment do you see around you? Who is working with you? How does this environment make you feel?

Now, price your work accordingly. Price your work with that goal in mind, or you'll never reach it.

What does your future self charge? What type of lifestyle are you living? Step forward into those shoes, if you will, because that's the only only way to grow and develop as a businesswoman.

Oh, and one more thing...


If you ever feel guilty about charging anyone anything for your art, remember this... businesses exist to make a profit... and are entitled to do so (that's a quote by somebody smart, although I'm not sure who). The bottom line is... your art is important and valuable. You don't need to feel like you can't make a living doing what you love. The two are not mutually exclusive. However... if you never charge enough for your work... you're probably going to need to go back to your day job.

What would your future self say about that?

I was largely inspired by this lovely video by Megan Auman and Tara Gentileon about how to price for profit in your creative business. It's definitely worth a watch.


Watch live streaming video from etsy at livestream.com

Comments

  1. Such good advice! Definitely something I need to bear in mind for the future!

    ReplyDelete
  2. What a great post! I'm always wondering if I'm charging enough or too much - this is so helpful. :)

    ReplyDelete
  3. awesome advice! I really needed to see this video.

    ReplyDelete

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