There's been a lot of talk about my pricing.
Now, opening up about this truth to the general public might not be "wise", but I believe it's an important issue. It's important to all of us...sellers and buyers alike.
I truly believe it's important to keep my customers in the truth about my business. Maybe that makes how I sell different, I'm not sure.
But what I do know is I never sat down and crunched my numbers to find prices that were fair to my customers and to me.
I have always placed my prices based on the competition.
Last night I broke down my costs. Even the ink used in my printer, which is a difficult one to break down. I used a formula I found on the Etsy Blog.
Here's what I used:
Cost (Labor + Materials) x 2 = Wholesale Price
Wholesale Price x 2 = Retail Price
For some of the items I offer this became difficult because the price was way above and beyond what I would even pay for something I just had to have.
I want my items to be affordable and obtainable. That has always been my mission...not just as a human being and seller, but also as a Christian. My work is a gift to me, which in turn is a gift to my customers.
It opened my eyes too. It showed me exactly how much I spend on materials and how often I probably need to restock. But it also required me to raise my prices. This is difficult for me...pricing is just not fun.
So I truly hope my customers can understand the raising of the prices. I kept it as low as I could, and I still don't believe that my labor cost should be very high. The average cost for an item in my shop is $10.00.
I would love to hear feedback on this issue. Whether you're a seller or a buyer. It's a touchie subject, but one we all must face on a daily basis.