I think one of my biggest challenges with selling on Etsy is charging the right price. It's easy enough when you're selling something that's easily priced at a reasonably price. I'm finding that pricing knitted or even sewn clothing is very difficult because if I'm going to price my items properly, I feel like no one would realistically pay that much. For example, I'll explain using the new Heirloom Crochet and Lace over Satin Christening Gown I'm finishing up right now.
Etsy suggests pricing items using this formula:
Labor hours X pay (minimum $10 an hour) + Cost of materials X 2 = Price
So.. the dress takes me about 10 hours to complete. 10 hours X $10 = $100
Cost is about $20.
$100 + $20 = $120
$120 X 2 = $240
Problem is, I'm wondering why someone would buy a dress on Etsy for $240 when they can buy something similar at a local department store for less than half that.
Here's why a lot of people do though: http://poppytalks101reasonstobuyhandmade.blogspot.com/
A few highlights from the list:
5. support the artisan directly. the artisan needs more support for their vocation - more than most.
11. Handmade products are more than just a product. There is love, creativity and uniqueness. And that shows.
18. You are supporting local artisans and craftspeople and not large big box stores.
24. When you buy handmade you create a direct relationship with the artist or designer of the product.
26. It's great for the economy
47. Buying handmade is win-win situation : You enrich your life with beautiful handmade goods, and you enable an artist to continue following their creative dreams.
70. Sincerity. People don’t hand craft things just to make money. They’re not just the product of a slick R&D department for profit. They make things that involve years of learned skills, passion, enthusiasm, commitment and sincerity.
71. Buying handmade shows our children that not everything in this world needs to be mass produced. It teaches them to love and appreciate the unique and the imperfect. And it inspires them to do their own creating as well.
85. Embraces and celebrates the diversity of regional cultures, ideas, and resources from around the world.
92. Because you are not just buying an item, you are buying a piece of the artist. You are supporting the love, sweat, tears, future, family, confidence, mind, body and soul of that person. It creates an amazing relationship between 2 people: the buyer and seller. You are not just a customer, you are a supporter, a fan, a collector of art.
100. Because somewhere out there in the world, you are providing additional financial support for stay at home moms, who have chosen to stay home to take care of their kids & provide personalized care & guidance for their children, who in turn will (hopefully) grow up to be better people who will have wonderful memories of their childhood with a parent.
So now you know how and why I price the way I do, even when other artisans sadly under price themselves!
Sarah