Last year I wrote about pricing your products for Etsy.
Some other areas you need to think about when pricing include:
1. Wholesale vs Retail Pricing
If you are in a position to wholesale your products be sure that you are selling at retail at the same price that your wholesale trade retails. You do not want to undersell your wholesale trade or you may lose them as a distributor. Wholesalers will typically double your price to them (that’s typically called the list price).
2. Discounting/Sales
I am not a fan of discounting. It suggests you have either too much stock or products are not selling and can undermine your ongoing sales price. But sometimes clearances are necessary. Be creative, how can you add value to your clearances without discounting. Think about 3 for 2, bonus items, gift certificate for next purchase, bundling of products into special gifting packs, special posting rates
3. Exchange rate
A number of crafters have had issues in the past few months in dealing with the reducing exchange rate. In large consumer goods companies an exchange rate is fixed based typically on a pessimistic rate. Companies do not change their wholesale or retail prices on a day to day basis to reflect currency exchange rates. If you are operating in Australia do your product costings in Australian dollars and then use an appropriate exchange rate to convert into $US. On average the $A to $US exchange rate for the last 10 years has been A$0.70 to 0.72. Pick an appropriate exchange rate to protect yourself against any volatility in exchange rates.
For other Crafty resources check here
Goodluck
Sharon










