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pricing (Read 685 times)
 
Ed Weber
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Re: pricing
Reply #15 - Mar 28th, 2019 at 8:23am
 
Just remember;
Calculating cost is simply math, calculating price is an art.
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robo_hippy
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Re: pricing
Reply #16 - Mar 28th, 2019 at 10:28am
 
Yea, what Ed said. I think I need to remember this one.....

robo hippy
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Jennifer Hasan
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Re: pricing
Reply #17 - Mar 28th, 2019 at 3:09pm
 
Hi Ralph,

My pricing strategy is not at all arbitrary.

I worked for a price optimization company and learned that prices in a store need to "make sense" to customers. If something is small, to a customer it should be priced less than something big. So I analyzed my items and prices and found that the majority of items were priced at the multiplier of 6, which means my items are $6 per square inch.

I then analyzed my time and expenses to confirm that I was making a decent profit using $6 sq/in, which I was.

I then looked at my competition and found that I'm never the highest seller on Etsy but close, which is fine.

I don't adjust my prices based on the wood, except for burls. It is all free and the time it takes me to acquire it is factored into the $6 sq/in.

I give this formula to clients so that they understand why a bowl costs $500 and a toilet paper holder costs $100. They never quibble because it is logical to them.

I sell things in mass. One year I sold over 500 peppermills. I could get fussy about pricing but, in the end, it all works out. But, it is not arbitrary.
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Ed Weber
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Re: pricing
Reply #18 - Mar 28th, 2019 at 4:27pm
 
Jennifer Hasan wrote on Mar 28th, 2019 at 3:09pm:
I don't adjust my prices based on the wood, except for burls. It is all free and the time it takes me to acquire it is factored into the $6 sq/in.


As Ralph said, if it works for and you are happy with those prices, then good for you.
For other members, This is where I would disagree with your formula

In my shop, wood price has to be a factor mainly because there can be a 100x increase from inexpensive domestic hardwoods & softwoods to gallery grade tropical & exotics.
Yes 100x that is not a typo.
Also wood can be an investment of sorts. I have blanks that I purchased between 5 and 10 years ago that are now worth triple the original price. It would be irresponsible of me not to factor that in.
To me, the wood and how I use it is the heart of the product. I use an hourly rate which encompasses all shop needs and add materials as a starting point (that's cost). Other intangible factors are involved in setting the final sale price.

Everyone sells different things using different methods, there is no ONE correct way.
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George Stratton
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Old Delta 12" 46-701 in great condition. Had it about 20+ years and turned 1 part.
Re: pricing
Reply #19 - Mar 30th, 2019 at 1:49pm
 
Jennifer, you seem to sell a lot of peppermills. I have only made a few sets, but none to sell, just gifts for the kids. What is the average selling price for a set of Salt shaker and peppermill considering its from a nice piece of wood? Thanks in advance, Geo.
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Rick Caron
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Re: pricing
Reply #20 - Mar 30th, 2019 at 2:18pm
 
Where i live people aren't to pay much. So the little that i do make   pays for more tools.    But that still     pays for a hobby that i luv.
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« Last Edit: Mar 30th, 2019 at 7:51pm by Rick Caron »  
 
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Re: pricing
Reply #21 - Mar 30th, 2019 at 6:49pm
 
As Rick mentioned, where and how an item is sold makes all the difference as to what price it commands.  The town or city, art shows, craft shows, galleries, personal website, and the lowest price likely would be Ebay/Etsy.  Since the latter are priced for across the country they might be the place to research pricing.
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Jennifer Hasan
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Re: pricing
Reply #22 - Mar 31st, 2019 at 12:35pm
 
On Etsy, there are 76 shops that sell peppermills for an average price of $61.99. If you sign up for Marlamlead you can get all sorts of stats. It's one of the best Etsy SEO tools around. Multimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to Login or Register. Etsy Rank is another one - Multimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to Login or Register.

Etsy is for serious sellers. You need professional photos and copy, and a deep understanding of SEO and branding. My 20 years as a marketing executive is why I do well on Etsy, not my turning skills. Smiley

My peppermills range from a 4" tall mill for $50 to an 8" tall mill for $150.

I used my formula to price both.

4x2x6=$48 which I rounded up to $50
8x3x8=$144, which I rounded up to $150

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Ed Weber
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Re: pricing
Reply #23 - Mar 31st, 2019 at 1:57pm
 
Jennifer Hasan wrote on Mar 31st, 2019 at 12:35pm:
Etsy is for serious sellers. You need professional photos and copy, and a deep understanding of SEO and branding. My 20 years as a marketing executive is why I do well on Etsy, not my turning skills. Smiley


Don Stephan wrote on Mar 30th, 2019 at 6:49pm:
As Rick mentioned, where and how an item is sold makes all the difference as to what price it commands.  The town or city, art shows, craft shows, galleries, personal website, and the lowest price likely would be Ebay/Etsy.  Since the latter are priced for across the country they might be the place to research pricing.


Don, you might think that as a logical conclusion but it's no longer true in my observations.

This is in no way a personal attack on anyone. This is an observation from someone who creates, sells, and interacts with crafts people. This is just one persons opinion and everyone is, as always, free to disagree.
JMO
From what I've seen and heard/read over the last couple of years, there is a growing dissatisfaction with sites like Etsy, Amazon Handmade and certain others This has driven many people to leave or at the least begin looking for alternatives.

Taking the top two quotes into consideration, I offer this comment.
Etsy was originally set up as a place to buy unique handmade items made by the small, independent craftsman/woman. As it often happens, things evolve from where they started and not always in a way we like. The craftsman, who's skill is in making items seems to be getting pushed out by "professional" marketers and sellers who are better at selling items. This seems to be the exact opposite of what these sites are purported to be.
Now it would seem, the appeal of a quality handmade item is stills exists but it's becoming harder to access. When this begins to happen the crafts person has to find a new venue if they can't compete with sellers. This is where some of these sites are at now. It's no longer a craftsman selling along side other craftsman but rather craftsman trying to compete with small businesses and professional sellers.
IMO (again), pricing formulas work in a manufacturing environment just fine but bringing that process to the handmade, craft or art setting, dilutes the very essence of the product.
Hopefully we can all just agree to disagree, everyone has their own philosophy on creating and selling their work. You need to do what's best for you. I only provide my point of view, not judgment.
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Jennifer Hasan
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Re: pricing
Reply #24 - Mar 31st, 2019 at 2:12pm
 
Unlike craft shows, art galleries, personal websites, etc., there is an abundance of information on Etsy prices, products, keywords, competition, photography, etc.

Want to know who your biggest competitors are and how much they charge? Want to see every shop who sells peppermills? Want to see which peppermills sell the most vs which get the most likes? Go to Marmalead or Etsy Rank. They get their data directly from Etsy and it's updated daily.

Information on Etsy is available. Both Marmalead and Etsy Rank have free versions. You all might be surprised at how much money is to be made on the platform.


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Re: pricing
Reply #25 - Mar 31st, 2019 at 4:07pm
 
This Topic was moved here from Turning Talk by David Hamann.
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Don Stephan
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Re: pricing
Reply #26 - Mar 31st, 2019 at 6:58pm
 
The information on Etsy is a revelation to me.  Doesn't seem like it was that long ago people were complaining that every new seller simply priced his or her similar item a couple dollars less than what was already listed.

Glad you are having success there Jennifer.
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Re: pricing
Reply #27 - Apr 1st, 2019 at 7:55am
 
Jennifer

You are very kind to share information and suggestions that clearly have given you a competitive advantage.  to give everyone a more complete picture, how much time should someone just starting on ETSY plan to spend on research, and once active how much time each and every month on copy writing, market watch, photography, shipping, answering queries, and other "support" activities?
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Ed Weber
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Re: pricing
Reply #28 - Apr 1st, 2019 at 10:01am
 
While still within the original topic of pricing, here is an article some of you may find helpful. Where to sell online and the fees associated, needs to be part of your pricing strategy along with many other factors.
You need the find the site/s that serve you best.

Multimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to Login or Register
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Ed Weber
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Re: pricing
Reply #29 - Apr 1st, 2019 at 12:03pm
 
This passage is from the Multimedia File Viewing and Clickable Links are available for Registered Members only!!  You need to Login or Register

"Did you just come up with a price that you are sure the market won't respond to? Here's the trick: if the item is priced too high for the market, it's not the price you need to alter, it's the design or the way you produce your work. Get creative and see how you can adjust the item to reduce your costs. Can you buy your materials discounted in bulk? Can you produce the work in multiples, reducing the labor? Don't take the easy way out by slashing your prices."

Well it seems to me, this is not designed to sell at a market acceptable price, which is what many people are frying to figure out when asking about how to price their work. This is how to maximize your profit margin without changing the price point, which is admittedly too high.

While there is merit in the cost cutting steps, it all becomes moot if the price is unacceptable to the consumer (no sale)

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