Teaching Thursday: Pricing

Pricing. The dreaded method every business must use to set the prices for the goods and services they are selling. Set your prices too low, and you will lose money on every sale and eventually go out of business (unless you are so lucky as to have a 2nd source of income with which to fund your business). Set your prices too high and you will drive away customers. The art of pricing is the art of finding the sweet spot in the middle, high enough to make money and low enough to create happy, satisfied customers.

How to do it? Well, I have my own formula, as does every successful business. Your own formula will depend on your costs, both time and money. Etsy has helpfully written an article on creating your formula, along with handy worksheets to help you along the way. Read it here.

Once you’ve read it and created your formula, you’ll need to go through your Etsy shop and check all the prices of all the items in your shop and make sure they fit your new pricing model. After that, stick to your formula, and make sales with confidence, knowing you aren’t losing money. Good luck!

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