I constantly wrestle with pricing. I worry about charging too much and feel guilty if I think I have. But when I break it down by cost of materials and the number of hours that go into making it, then I feel like I’ve underpriced. Still searching for that middle ground of pricing perfection!

While I do struggle with this somewhat, I’ve come to believe that if we under-price our products, we’re only doing ourselves a disservice (and all of Etsy, really). We’re undervaluing our time, energy and talent. I had a conversation with a friend once about this — she said don’t let your pricing be a self esteem issue.

And even the master beaders on the Cree reservation are essentially mass producing these items if they’re doing it for Eileen Fisher. Most of us are making one of a kind or few of a kind items. So…Value yourself enough to charge what the retailers would — if not more — because you’re offering something handmade, which is way more awesome than anything else.

I’m nodding a long to both comments!

It’s something I struggle with too, but I genuinely believe we are too often guilty of undervaluing our work, and thus ourselves…I just need to be brave enough to put that belief in to action with my own pricing!

[...] was able to recreate the necklace I wrote you about yesterday.  I had everything in the house so it was really simple.  The beads were purchased from [...]

Pricing is so dicey. And when the economy is bad, thoughts of raising prices to hopefully get sales on things that aren’t selling is tough….back and forth, back and forth!

Another fantastic subject on which so many of us can debate and learn from each other. Thank you!

Well spoken. I’m so tired of seeing handmade artists cheat themselves because they don’t have confidence in the their product. I know this feeling because I’ve been there. But, after 5 years, I’m realizing my time is worth getting paid for. So, people might see my work and think its pricier than similar shops, but I’m laying a foundation for expansion for my business. And I’m not going to feel bad about that! (-;

I hate pricing! I hate it when it comes to design services, and I hate it when it comes to my etsy shop as well. I try to think what I would pay for it, but I also want people to think that they are getting a good price. Now I am in the process of trying to create more complex items and pricing those higher while still having low price point items as well.

It is difficult to create a perfect pricing. I think you must price your products to be price competitive to other sellers on Etsy. However, you must consider your marketing strategy as well if you are thinking to sell to the stores, and your wholesale price must have room for your retailers to mark up the price as well.

[...] This post was mentioned on Twitter by Kaylie Ashton. Kaylie Ashton said: RT @handmadespark A Thought On Pricing http://bit.ly/cLUyqb [...]

The never ending tension of keeping our work within price reach for customers and making enough profit to keep the business going…so difficult to balance. Thanks for the post~

I’ve struggled with pricing also, as most of us have. The problem is, if I priced according to the time it takes to create one of my desktop business card holders, or any of my other creations for that matter, I doubt that I’d ever sell anything and I really want the things I make to be used and loved.

Touche to all comments!! I wrestle with the pricing issue each time I create a piece. Personally I would like to find that perfect niche where shoppers are knowledgable and want to buy Handmade vs. retail.

Social comments and analytics for this post…

This post was mentioned on Twitter by reddinghandmade: Thoughts on pricing: http://handmadespark.com/blog/a-thought-on-pricing/#comment-1344 http://ning.it/asUrVm...

While I agree that etsy sellers can be terrible about undervaluing their work, you really should factor in the cost of materials in these different necklaces. The two found on etsy are made with freshwater pearls and faux pearls. A quick Google search shows that freshwater pearls can be had for a dollar or two PER STRAND. The beads used in the Eileen Fisher necklaces, Vermeil beads, cost roughly $1 EACH (and up) depending on shape and size.

Pricing can be tied to the venue – in this case Etsy. If you’re swimming in a culture that prices low for sales, then you are going to compete on pricing alone. To me that argues for seeking out venue that support the artist’s on-going path of supporting herself. Reading through this I feel as if much of this is more about being worthy than about a high or low price. Seems to me that until we value ourselves, until we see our art as a business, until we understand what we uniquely bring to the artistic discussion, we will continue to seek success in all the wrong places and at unsustainable pricing levels.

[...] has a full semester’s worth of definitions for the clicking. But as you can see with this post from Handmade Spark, the discussion goes on and on and on (be sure to read the comments). And it isn’t only that [...]

Other prices on Etsy do not dictate what I am pricing my jewelry, trees, furniture, and everything that I make. I have sold on Etsy for 3 years and have made a living from it. My prices have raised since I first started, because I was not established as an artist online or off. I agree with Tammy … you have to see your art as a business and that will help you price your art correctly.

From what I’ve observed a lot of etsians are underpricing themselves. To me it looks as though most don’t factor time into their pricing at all. It’s hard to feel confident in your pricing when so many on there under-price.

It reminds me of the freelance bidding sites where so many of the people on there underbid to the point of madness. I begin feeling as though sifting through projects are not a valuable use of my time. I’m thinking maybe I ought to put up a listing check in once in awhile and just let people come to me on those sorts of sites.

I’ve never been one to blindly follow the way others do things.
I developed a little pricing formula and also an hourly rate, for each project I run the numbers on both and go with the one that feels more balanced to me. I haven’t been posting to etsy long, only since January. I may not have yet made my 1st sale yet but so far my posting rate has been a little slow, but there are reasons for that, mainly I’ve been testing the waters in multiple areas of my business, Etsy only being a small part of my whole business. Etsy is where I put the original artwork, original artwork for sale is hardly the only thing I’ve got in the works.
All of it is time consuming, but I expect my posting rate to pick up within the next few months, as all my stuff gets to the point where I start promoting it fully (I’ve yet to submit my site to search engines, for example, I expect to do that in mid-April).

I thought Tammy Vitale made some great points about sustainability. At the end of the day I have to go with what’s best for me (this is not to say I am not fair to buyers, as I do take them into consideration). Too much of my life has been a financial struggle, I can’t see adding to that burden.

Unfortunately, way too many people under price their work on Etsy.

In addition to the time and materials invested in designing and fabricating each item,
a seller should add the cost of their time for:

inventory management
photographing the item
listing the item

additional overhead expenses:
utilities including electricity, phone, and internet
computer
space in their home for fabrication and office
office expenses
health insurance
savings for retirement

Then add a margin for time invested in retailing, and marketing.
Add a % for profit.

There is no way anyone can afford to sell for prices I often see on Etsy.

What is your hourly wage, plus expenses?

what are similar items selling for in the marketplace (outside of Etsy)?
Kay Murphy is right on target when she is looking at similar items in mail order catalogs.
Harriete Estel Berman
http://www.askharriete.typepad.com

they are underpricing themselves, but $88 is too much for that necklace…