Pricing ?

Hello Hello,

So recently, I’ve been browsing around Etsy and such and for me, looking at some of the items and prices and I’m start to think about how I’ve been pricing things.
Sometimes, I see studs (polymer clay ones mind you) that probs cost less than $5 to make , sell for $20

Intense.
So now I’m thinking, am I pricing my creations wrong? Is it too cheap ? My Totoro bottle took about 4 hours to make (according to the time stamps  of the original images), and it takes even more material than those studs and I’m selling for $15 USD.
But at the same time, I know how hard making these are, and they do take a lot of time and skill and I guess that’s what make people sell them for that much
So then I decided to go and do some more research. I’ve done this before setting up my etsy, but I actually calculated everything this time:

See this article [Link], it’s Etsy’s page on how to price your creations.

Taking my Totoro bottle as an example:

Totoros

Materials:

  • Polymer Clay : About $2 ( considering I take small chunks off different colours)
  • Glass bottle: 80 cents
  • Packaging: 50 cents
  • Bubble wrap: 40 cents
  • Sellotape: Lol probs like 5 cents

Labour:

  • 4 hours ( according to online, should be the minimum wage of my country = $13.75)
  • = $55
  • After tax = 47.83

Expenses: 

  • Etsy listing fee: 0.23 NZD
  • Etsy sale fee = 3.5% of sale price (assuming I sell at $15)

Profit:

  • Profit would be nice. Lol

= Wholesale x 2 (what does this mean? All those calculations x 2?)

  • If so : Adding all those previous ones = 52.33
  • x 2 = 104.66

=Retail
$ 104. 66

——

So. Assuming I did all the calculations correct, my glass bottles should sell for $104.66 , which is ridiculous.

——–

Let’s try another one [Link]

Time x $NZ minimum wage:

  • 4 hours * 13.75 = $55
  • After tax (15%) = $47.83 (2 dp)

+ 2(cost of materials) from the above calculations of materials + expenses
= 2(4.51)
= $ 9.02

x 1.1 = 
= $9.91

Wholesale price (everything added together)
=$ 57.74

Retail = wholesale x 2
= $ 115.48

Okay, so this is even worse , $ 115.48

—-

So what am I doing with my pricing? I honestly don’t know.

For me, I’ve always set the prices at the price I would pay for the creation.
Like, if I set my bottles at $30-50, I really don’t think anyone would pay for them. Adding the shipping overseas, the total cost for this 4cm glass bottle = $40-60 USD.

I honestly don’t think I would end up selling anything at all. The listings that I put up cost me 0.20 USD each and expire I think after 3 or 4 months. If no one buys anything, then that just means more of a loss for me.
And also, I guess I’m just not too worried about gaining any profit because most of these creations are just made as my hobby. Since I’ve started crafting with polymer clay, I have spend hundreds on materials alone (up to now) and I never really kept track of all my expenses (which I should do – but hey I was 14 at the time).

Can you tell I’m really confused right now ?
Also, I’m pretty sure a lot of people don’t follow those (above) methods to a T.

What do I dooooooo ????

WHAT DO I DO SDFKJHSDFKJKHSDJF

Kay.
I’ll end this post here because I actually have this thing due for school tomorrow.
Thanks for reading to the end !

-Cyn

Advertisements

2 thoughts on “Pricing ?

  1. writingmom2013 says:

    Interesting blog. Unfortunately, I can’t be much help since I don’t currently sell on etsy, myself. Maybe increase the price slightly? To like $20-25? See if that works, and increase later if you have to? That’s what I would try, & that range doesn’t seem very expensive.

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