Tips for Adjusting Merchandise Pricing in Your Etsy Shop

When pricing your Etsy merchandise for sale, take some time to scope out your competition, both on and off Etsy. If their prices are roughly in line with yours, you're probably in good shape. If they're significantly higher, you might have adjust your price.


Put yourself in your prospective buyer's shoes and ask yourself the following questions:



  • Would I buy my product or a competitor's product? Why?



  • Is my product made of better materials than my competitors' products?



  • Did crafting my product or my competitors' products require more skill?



  • Is my product different or special in any way?



  • What do I think my product is worth?




Your answers to these questions help you determine whether you need to adjust your price upward or downward.


Your competition doesn't consist of only people who make an item similar to yours; it's anyone who's targeting the same market you are.


In gauging your price, you need to consider your target market. Who will buy your piece? How much disposable income does that person have? If your target market is 20-something hipsters, chances are they're not quite as flush as, say, your 40-something set, so you may need to keep your prices lower.


If you decide you need to lower your own costs. See if you can purchase your materials more cheaply from a different supplier or spend less time making each piece.


Don't lower your prices to compete with machine-made or imported items. Handmade items have more value and need to be priced accordingly.


Sometimes you will find that you can raise your prices. People perceive some products to be more valuable than others. When pricing your items, see if you can take advantage of this "perceived value" and position your pieces as "premium" products. Maybe you use exceptional materials in crafting your piece. Or maybe you've developed a unique technique that makes your piece especially beautiful or durable. Note that buyers will also perceive your work as more valuable if you've developed a reputation as an artist — perhaps by showing your pieces at galleries or gaining publicity in some other way.


Sometimes the very act of tagging your piece with a higher price can make buyers perceive it as more valuable. Of course, that doesn't mean you should offer some useless doodad or otherwise unremarkable item at an outrageous price.


Be sure to talk up your work in your shop announcement and item descriptions. Share why your pieces are valuable.


If demand for an item that you sell is so high that you simply can't keep up, it may be an indication that you've priced it too low. On the flip side, when items don't sell, many shop owners assume that it's because they're priced too high. However, your price may be too low. Before you start slashing prices in your store, try raising them. You may be pleasantly surprised by the result!


Many artists and craftspeople underestimate their worth. They lack confidence in their work and their vision. As a result, they inevitably underprice their pieces. Underestimating the value of your work doesn't just hurt you; it hurts everyone who's trying to earn a living by selling their handmade goods. Deflated prices are bad all the way around! If you suffer from this malaise, channel your inner Stuart Smalley: You're good enough, you're smart enough, and, gosh darn it, people like you!











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Source:http://www.dummies.com/how-to/content/tips-for-adjusting-merchandise-pricing-in-your-ets.html

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