How to price crafts ? There are 7 successful techniques…

Simplify templates
09 Nov , 2022

If you are a seller on Etsy or any other online platform, you know that pricing your products is always a challenge. 

It's easy to price them too low and not recoup your costs and time, but it's also easy to price them too high and miss out on potential sales. 

In this blog post, we are going to give you insider tips about how to price your crafts for maximum success. 

You don’t have to be stuck with one way of pricing forever. As your business changes, so can the strategy behind how you price your products. 

Here are 7 techniques to price your crafts that will always be successful !

Always test your price before launching a product

If you have a product you’re considering selling, always test the price before you launch it. 

It’s better to get this wrong before you put in all of the effort to build a listing, create a brand, and drive traffic to your site. You’re not wasting any time or money, you’re simply adjusting your price to reflect what the market is willing to pay for your product. 

While your gut is a good indicator of what price may be in line with your product, you need to test it with the market to be sure. You can do this by setting up a listing with a variety of pricing options. 

Then, track how many units you sell at each price point to see what your customers are willing to pay.

Don’t be afraid to mark your products up

This may seem counterintuitive, but the reality of the industry is that most sellers mark down their products because they want to drive higher sales volume. 

It’s important to understand that the more you sell, the less profit you make on each individual item. 

If you are trying to make a living or have any kind of long-term business goals, you need to price your products at a level that is sustainable. 

You should have confidence in your products, and if you do, then you don’t need to price everything at rock bottom. It’s important that you understand your customers’ willingness to pay for your products.

Know your costs and how to track them

It’s important that you understand what your costs are for each item. If you don’t know how to track your costs, you can easily get caught up in a price war. You could price your products low for a while, but eventually, you’ll be in a spot where you can’t keep up with demand because you’re not making any money. 

It’s important to know how much money you need to spend on your craft project and how much you are willing to spend. For example, if you’re going to make a piece of jewelry, it’s good to keep track of the materials you need. If you don’t track your costs, you may end up overspending on materials because you didn’t account for them when calculating your budget. 

Similarly, it can be helpful to know the cost of labor in order to set a fair price for your finished product. Don’t forget your shipping costs.

However, there are some things that you should think about into your pricing plan and your profit margin. For example, if you’re applying a wholesale pricing, an offer “free shipping”,  or if you’re making handmade items, that will impact your total costs. 

Use value-based pricing

In addition to knowing your costs and tracking customer feedback, you should also be using value-based pricing. This means that you are figuring out how much value your products provide to customers. Then, you are pricing your products based on that value. 

Make sure you are making realistic assumptions about the value of your products. If you overprice your products, you’re going to make fewer sales. But if you underprice your products, you’re not going to make a profit. You can test this by creating a survey or conducting an online market research study. 

Ask customers what they would be willing to pay for your products. Be sure to be as specific as possible so that you get accurate information. You can also do a price comparison. 

Find out what your competitors are charging for similar products. This can help you get an idea of what your price should be.

Knowing your concurrency prices

Craft is a unique market for many reasons. Due to the high volume and low margins, it can be difficult to accurately price. In some cases, prices are set by looking at production costs while in others, they are based on demand. If you’re new to the craft world, there are a few things you can do to figure out the right price.

One of the most important things is to know your concurrency. Concurrency is the number of times per day an item is made. For example, if you make 100 scarves at once, that’s 1 concurrency. If you make 10 scarves per day, that’s 10 concurrencies. Knowing your concurrency can help you determine how much time it takes to make an item and how much it will cost to produce. Knowing your concurrency also helps you adjust your prices when demand changes.

Next, look at what other people are selling their items for on Etsy or Alibaba and compare it to yours. This will give you an idea of what your competitors are charging for the same items you sell. Then take into consideration any additional costs like packaging or shipping that may need to be included in your pricing. You will want to end up somewhere between the two figures so that you aren't losing money on every sale while also not breaking even.

Use psychological pricing strategies

If you want to take your pricing to the next level, you can utilize psychological pricing strategies. This means that you are taking advantage of the customer’s mental process in the way you price your products. 

You are trying to make it easier for customers to purchase your products by appealing to their emotions. There are a few ways to do this.

First, you can use numbers that end in 9. 9 is a more satisfying number than 0. When you price products with a 9 at the end, it makes them seem cheaper. This can be especially helpful if you want to price your products lower. 

The only thing you have to do is either round the price down or add a 9 at the end of the price.

Second, you can use a pricing strategy called odd pricing. This means that you price your products with an odd number instead of an even number. This can have a psychological effect on people.

Leverage the power of scarcity in your pricing.

Scarcity is a very powerful marketing tactic. It means that there is a limited supply of something, and customers will often pay more for it because they don’t know if they’ll ever be able to purchase that product again. 

This is especially true in handmade and vintage industries where products aren’t manufactured on a large scale. You can use scarcity in your pricing in a few different ways.

First, you can create a limited quantity of products. This doesn’t have to be anything extravagant. It can be a quantity that you know you can realistically produce on your own. When you set a price on your products, include the fact that there are a limited number available. Let the customers know that they need to purchase the item while it’s in stock.

Second, you can use phrases like “while they last” and “no more will be manufactured”. This will let customers know that you can’t produce more of the product and that they need to purchase it while it’s available.

Our final word : stay flexible & continuously test

We hope that after reading this blog post, you feel equipped to price your goods more successfully. There’s no one correct way to price your crafts. Instead, there are multiple strategies that you can use based on the current dynamics of your business. Remember that these strategies aren’t set-in-stone. 

You can always adjust your strategy as your business changes. Don’t be afraid to test out new strategies. You may find that one strategy works best for your product line right now, but another strategy works better in a few months. 

We hope that you find success with your pricing strategies.