Two Crafty Ladies

Two friends on a mission to start their own Etsy shops share ideas, inspiration, and encouragement.

Cost and Pricing March 1, 2008

Filed under: Business — ollie & junebug @ 6:26 pm
Tags:

Check out this article about costs/pricing from Beth over at Etsy:

Figuring out how to price your items can feel like the most challenging part of selling. Don’t worry, it’s normal to feel a little overwhelmed. Fancy business schools devote full semesters to this subject. And the one thing they teach? There is no magic pricing formula. Fortunately, pricing is more art than science, and Etsy is full of great artists.

If you are running your Etsy shop as a business and not just as a hobby, the first thing to do is to cover your costs. Direct costs include:

  • materials used to make the item
  • packaging
  • PayPal fees
  • Etsy fees

Even include that yarn that you dug out of the closet where it’d been stashed for years or those buttons your next door neighbor gave you; these are materials you could be using for something else, like design fees, the internet in your home office or rent utilities.

Indirect costs may include machinery: for instance, a large loom, or payment for access to a darkroom or a metal shop. These costs should be factored in as well.

Next, consider your time. Think about the time it takes to create the item and list it. On the creation side, don’t forget the time to design the item as well as the time to physically make it. Include time that might otherwise be considered “down time,” like working on the item while at your table at a craft fair, knitting on the bus on the way to work, or spinning during your favorite television show. In addition, remember it also takes time to take a great photo, to list your item, as well as to carefully pack and ship the item.
(more)

Advertisements
 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s