Monday, February 15, 2010

Pricing Your Etsy Items

So it is the moment of truth, you are entering a new item for your Etsy shop and you have to enter a price. What to do, what to do? Well I can’t tell you how to price your items but I did want to pass along a few tips I picked up in my pre-mommy career. So first and foremost don’t under value your work. Make sure you know your costs and your time. Then compare your work and pricing idea to similar items out there. If you are way over you may need to rethink some things and it isn’t good to be way under prices either it may give the impressions that your work is somehow less valuable. So now that you have a general price point in mind you need to consider the following.

There is a theory that goes back to long before our current ATM/Credit card world that is based on actual bills. The general idea is that every new bill increment ($1, $5, $10, $20, $50, $100) that a buyer has to break comes with a mental barrier that makes them think more about the purchase they are making. Hence we live in a world of $9.99 and $19.99 pricing because breaking that $20 makes the buyer think just a little more about what they are buying.

Now depending on what you sell and your costs you may not have a ton of room to move the numbers but don’t think you always have to make things cheaper. For instance going from $29 to $32 probably won’t turn any customers away but that is $3 more a sale for you. It is really more about thinking about the actually numbers being used! Happy pricing!!!

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