95% of Etsy Shops Don't Price Their Products Properly
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- Опубликовано: 16 июл 2024
- In this video, I talk about different ways you can price your products.
0:00 Intro
0:45 Nothing vs Something Based Pricing
1:01 Nothing Key Points
1:23 How To Gauge Good Prices
1:51 Competitor Pricing
2:01 Competitor Example
2:25 Competitor Cons
3:23 Why it’s Bad on Etsy
4:09 Competitor Pros
5:08 Cost Pricing
5:19 Cost Example
5:41 What Percentage to Use?
6:03 Cost Pros
6:58 Cost Cons
7:24 Storytime
8:23 Value Pricing
8:30 Value Key Points
9:45 Value Pros
10:12 Value Cons
10:58 Key Takeaway
11:31 How I’d Start
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Thank you for mentioning customers who only want a good bargain! I am selling hobby supplies and I've had a period of time during the 1st year of owning a shop when customers would message me saying things like, "why everything is so expensive" or asking to give them a discount because the price was "too high." It was getting a bit annoying (it's my shop, my ideas, my labor, and my prices - why should I sell my high-quality items super cheap on demand?). My solution was to raise all prices for about $2-20 for each product (depending on the size and configuration). After I did that, the segment of customers who were only after low prices disappeared from my shop and I started getting customers who appreciate what I do and who've been loyal for years. SO, if you are a shop owner and you get harassed by customers telling you how everything is expensive or demanding coupons, it's time to raise prices slightly (it's counterintuitive, but it works!).
Great insight!
Definitely. People forget that YOU get to choose your customers. Pricing is one of the ways to do it.
Value pricing! Creative people and makers never factor in the skills they add. It's so much more than simply cost of materials + labor. You have to account all thr time you spent developing your craft. You need to cultivate an attitude that if people want cheap--go to a big box store.
Yes! I wonder if there’s a way to quantify that value… 🤔
I was under pricing myself and I couldn't do it anymore and on top of the product I give a good bit of freebies like handmade stickers, charms, pins, and block prints to show my appreciation for their support.. so I raised it to what it's supposed to be so I at least get 50% or more on the profit margin and I got an increased amount of views and orders ! I was so worried me raising the prices would discourage buyers but I was wrong... Because I was pricing myself against wholesalers not hand made jewelry so I think increasing helped cause it also shows I am confident in my product..
Hey Tim, I really love your videos. They have been an inspiration for me and they are always very insightful. I really appreciate the thought, time and effort that you put into them. Thank you so much, many blessings.
Thanks a lot Tim, I've actually ran into a similar question this morning with pricing. Your video really does a great job in explaining how to price products. Learned a lot from your videos, keep up the good work!
Thanks!
Such a brilliant and valuable video! I especially loved the furnace example and explanation of value pricing. Thank you!
Appreciate it bro 🙏
Thanks for sharing... Value based pricing to a point.. it shouldn't be a what you can get away with mentality. Most landlords go by this principal unfortunately.
@Tim Koa Hello 🙂 I just discovered you this morning and love your calm demeanor. QUESTION: could you do a video for those of us who sell vintage on Etsy regarding how to price and anything else you think would be useful? 😀💰 Thank you👍🏻
Love the video! I always get confused when too many products are all priced the same :/
super useful, thank you!
Thank you for sharing
Solid! Thank you! 🙌🏻
Thanks for watching :D
Thank you for making these videos. I first saw your video this time last year, since then I’ve made my pun unique characters, created a brand name and soon I will have enough $$$ to get my brand name registered TM. If all goes well, I will be listing my product on Etsy and hopefully be on my way to having a successful business. 🤞 Until then, I am going to get a business account to keep funds separated from my personal account. I appreciate everything you are teaching on your videos. Thank you so much.😊
Thanks for this great video! I´m so glad you´re back!
So if you realize that you should charge more fore your products on Etsy, what stragety would you use to raise your prices? Some of my competitors charge 50% more while having a similar offer. I´d like to raise my prices from $10 tp $15, should I do that in several small steps (if yes, within what kind of time frame?) or all at once? What do you think is the smartest way to do this without losing sales?
I would pay a monthly just to have competitors not show up on my listings
Underrated video ❤
Tim, nice to see you back! Can I ask what kind of audio equipment you are using? It is so clear and crisp! I'm using a Zoom H4N Pro, but not overly excited about my audio.
Thanks Gavin, I use this mic: amzn.to/3LuXlMx
Hi Tim ,
Thanks for all your videos ! very valuable for me ! you explain very well and easy to understand
i have question about the competition number ( on sale samourai , Erank or whatever tool)
how much is too much competition ? (i know there is green / orange / red ) but still ..
first is there such a thing as "too much competition" ?
and second How to calculate by the search volume (Etsy SV) to the competition number ? (if there is actually a gap for me to enter)
i hope is that make sense , and you will answer this or make a video about it !
thanks
Hi Tim! I accidentally came across one of your videos about selling stickers on Etsy two weeks ago and I was motivated to start a business on Etsy. Still in the trials and errors process but I believe getting started is the best step I've taken. Thanks for the inspiration.
By the way, are you Vietnamese too? :D
I am!
excellent
Long time no see bro.. 😁. Hope u always be active to share ur experience
Will try to post more :)
Ok, always wait ur productivity tips Tim ☺️
Hello Tim, I'm just starting with handmade wooden earrigns. Please help: Which price is better? 9,90 + 2,90 shipping? Or 12,90 with free shipping?
Hi Tim, i have been following your videos for sometime now since i started working my etsy shop, and made my first sale. i just wanted to ask you how come etsy charges so many fees, they basically took almost half of what the product cost with fees. I didn't understand fully their explanation on their page and was hoping you could explain it a little simpler.
thank you for you videos and wish you all the best.
How do you get traffic to your Shopify website. I sell on Etsy and just opened a Shopify. I know running ads is one way but what do you do ?
If you overprice on etsy you wont sell a thing people want something for nothing these days the biggest problem with no etsy sales these days is drop shipping and the likes of temu you just cant compete plus the shit ads etsy runs a couple of times a year ive been on etsy now since 2014 ive had a fair few sales but within the last year nobody has the money to buy or want it cheaper it has nothing to do with how low you prices are look on the forums everyone is in the same boat unless you have a specific item that sell and thats getting flooded know
I imagine it's harder for people who are selling truly handmade things that require expensive materials and lots of skills. Unfortunately, many people do not appreciate the value of unique handmade items. Etsy completely failed craftspeople who make things from scratch and instead promotes shops that have a large volume of cheap imported merchandise (Etsy makes more money off someone who sells 1000 things a month for $5.99 vs. someone who sells five things for $200). There are a few solutions that might help boost sales without lowering prices:
1) Updating tags to make sure you are on the first pages when people search for products like yours (EverBee app is helpful, part of it is free);
2) Update product photos and videos. Customers (myself included) are spoiled and want to see great photos with details and close-ups. Videos help sell, too. I know, not all people are great at product photography - this can be outsourced to someone who can do a good job (I have one really great product photo that lots of people like - I sold this product 718 times! I still get messages on Instagram from people asking me where they can find the product from that photo. So, good photography can help!) If the products can potentially be gifted to other people, having photos of gift wrap and festive styling can help, too.
3) Create and keep your customer base outside (!) of Etsy. Have a dedicated page on social media where you share your work process and show previews of upcoming products, so people can a) see that you truly make things from scratch and b) get excited about new things. Have a mailing list (AWeber is a good email service, it's free for up to 500 email subscribers, I think, AND it can be linked to Etsy, so customers who bought from you can opt in and receive your marketing emails. So, if Etsy fails to promote your shop, you can always reach out directly to your customers and tell them about your new products.
4) If you are a maker and not a sales person, consult with someone who is good at sales. Maybe a shop owner who is not your competition can give you some advice or help you with research.
Maybe I could have been more clear in the video, but hand-making products and pricing to compete with dropsellers is exactly the mistake I'm talking about. You will never win. It's why competitor-based pricing doesn't work on Etsy. I disagree that "people want something for nothing". There are still people willing pay good money, but they want good value for their money.
You can get a leather wallet for $1 on Aliexpress. But there are still successful, independent businesses that make tons of money selling leather wallets. How is that possible? One of the reasons is because they offer something that these dropshippers don't. Something that customers are willing to pay more for. That's where value-based pricing comes in.
Hey Tim i have a new sticker shop on etsy, i think im doing ok to start my question is i have a sticker that gets allota favorites do they actually turn into sales one day lol ? Also if i sell 1 sticker do i give an extra ? I usually do the few customers i have seem to appreciate it. Thank you
honestly, if it was me, someone buys 1 sticker, I might toss in a cheap small sticker extra that is an off-the-shelf sticker I bought bulk, or a store logo sticker. I won't toss in another whole product I sell for free with a 1 sticker order. Someone buys a lot of stickers, then maybe. And if someone is a repeat customer, definitely gonna send a freebie.
@StarlightSovereign thanks allot for ur feedback bro! Yea I been throwing in one from the shop, I kno it kinda defeats the purpose I'd rather them b happy. So far they have been, I've gotten allot more 5 star reveiws then I thought I would have. Think I got a bad coming my way tho cus shipping
@@melvinflint9714 I mean honestly, an extra makes people happy, and when you're starting out, you really want to get happy repeat customers and word of mouth more than anything. So yeah, if it gets people to leave good reviews do it.
I just would have some small stickers I used for extras and freebies. Like some 1-2 inch stickers that are your go-to freebies.
Then you don't have to really put too much extra thought in it. Just toss in a freebie or two depending on how big the order is. If it's a bigger order or a repeat customer, add another of your main stickers if you want on top of the small freebies. :) For me, it's important that it's kinda a no-brainer type choice so I don't fret over it every time. So having go-to freebies would really help me personally.
Etsy is charging you about 50% when all is said and done. That’s too damn much.