I know - one of the most awkward things about selling items you make is how much to charge for them. You want to make a living, you want to be fair, you don't want to be laughed at, and you don't want your items to appear "cheap".
This is something I have struggled with since DAY 1 of my Etsy shop and I have been all over the place with prices. There's the part of me that wants to be practical and just go by what I think people will be willing to pay for something. That may not always be fair.
Then there's the formula - you know the one....
Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail
Currently, many of my prices don't reflect this calculation, I know I suck! It's only because sometimes I'm not comfortable with the retail price I come up with (will someone really pay that much?!?!?).
Here's the thing about labor, I'm not just talking about the amount of time it took to make the item. I'm gonna be honest, some of my necklaces take less than five minutes to make - like this necklace. How do I pay myself for minutes? It's simple, I don't because there's more to it. I have to photograph the necklace, edit the photos, post it on Etsy, then share my new item on Etsy forums, Twitter, Facebook, Pinterest, etc. Get the picture? It's ALL labor so whatever you charge yourself houly should include everything involved with getting your item out there to the masses.
There's going to be another post that will share just how important photographs are and how much work should go into styling your item so stay tuned for that!
RESOURCESPricing Happiness Part 1: You Should Charge More
Pricing Happiness Part 2: Address Your Fears & Raise Your Prices
A Simple Formula for Pricing Your Work
How-To: Price Your Handcrafted Goods - there is a good explanation on how to determine your hourly wage.
5 Tips To Get You Started - Pricing For Retail
Pricing Your Items For Growth