If you sell your products on Etsy, you would know what a significant problem it is to price your items in the right bracket. There are a lot of amazing people on Etsy selling their products at ridiculously cheap prices. This clearly entails that people are selling themselves short or they are completely unaware of the value they’re offering.
In any case, Etsy price valuation is something which troubles a lot of sellers.
How should a seller settle on a price? Too expensive and your customers would pass up your products. Too cheap and you’d underpay yourself and undervalue your work.
So how can a seller decide on their product prices?
Figuring it out
As it turns out, Etsy released an extensive guide on price reevaluation and assessment for Etsy sellers. Turns out that the entire scope of marketing and pricing products on Etsy revolves around your competition and the quality you’re offering.
Here’s the simplified formula by Etsy:
Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price
Wholesale Price x 2 = Retail Price
This formula presents you an idea of the pricing you can offer based on your inputs, your expenditure and your efforts. First, you need to map your products and the effort that you put into them.
Start with your Materials
The materials you use to make each item in your product range will dictate your total cost and determine the price of your item. Map your prices by accounting each material input into a product.
You can also eliminate or substitute materials to vary your costs. See how your customers respond to the material changes. You’ll be able to get a better handle on individual costs.
Make a Pricing Goal
Ascertain your pricing structure and scope of your products in the market. Most people under value their items as they are not aware of the requirements and trends in the market. Learn about your business field and find out your niche on Etsy.
Making a pricing goal also helps you understand your yearly targets. It also helps you plan your activities and scale your Etsy range in the future. You can also choose to map, invest and re-invest in your Etsy store.
Find the sweet spot
After you’ve reevaluated and re-structured your pricing, you’d want to decide on the sweet spot suitable for your niche and for your customers. You can make a lot of sales by varying your prices by a small difference.
Lower Prices do not mean more sales
Lower prices do not always guarantee you higher sales. You have to price your products in an exclusive yet affordable way. Often people consider poorly priced products to be of lower quality. This is a basic tenet of behavioral economics and can result in hefty losses for any brand or seller.
Your Etsy products should be priced in an appropriate range so as to target the right customers. Channel exclusivity through your products and map the changes that gather a higher response rate from your customers.
Analyze your Competition
As with any field, you competition can determine your products fate in the market. Many sellers underestimate the impact a competitor makes on the niche. This can affect your pricing scheme and the perspective of your customers for your products.
Carefully judge your competition and price your products in a delectable range. You can always one-up your competitor by offering more value on the cent. But be careful of the implications of the competition so that you can usher in a healthy and profitable rivalry.
Test and Gauge response
Once you’ve decided on a pricing bracket for your products, seek response and feedback from your customers and fellow business owners.Ask questions from your consumer base. Their preferences, their concerns and their ideas should be addressed and analyzed. Apart from being an effective customer experience strategy, this can also provide you with useful nuggets of information.
This way you can understand the pricing and the consumer sentiment in the market.
Reevaluating Etsy Prices using Pricewoot
Now that you’ve understood the various facets around pricing changes on Etsy, you would know that pricing any product requires some amount of research, analysis and time. Many sellers would be skeptical of putting in the required amount of time and effort for the price restructuring required.
In this situation, the seller would require an alternative method to know the average prices of similar products in an organized manner.
Pricewoot offers an amazing service to Etsy sellers by showing them a detailed sketch of average prices of products. With Pricewoot, a seller can discover the right prices for their Etsy listings.
How does it work?
Pricewoot uses a predictive analysis engine to suggest the correct price ranges for a product. With an analysis of over a million sales for tens of thousands of Etsy stores, Pricewoot provides a number of powerful Etsy data analysis systems to predict correct prices for different products.
What can it do for you?
With Pricewoot, you can:
- Discover correct prices for your products: Compare your products with the market average and see where you fare amongst the competition.
- Track your top tags and materials: Pricewoot keeps you updated with the important metrics related to Etsy businesses and guides you to improve your sales and profits.
- Track shop data and get suggestions: With suggestive methods, Pricewoot will help you understand the products and tags performing better on Etsy. With this information, you can focus on the right areas of product development.
- Track your top customers: Pricewoot lets you manage and re-engage your customers to generate more sales and profits.
With this simple tool, you can completely eliminate the need for thorough research and analysis for your product prices. Get on Pricewoot and put more time into creating your products while ensuring amazing returns and profits from Etsy.
You can try Pricewoot for free and see the results of Etsy price re-evaluation yourself. You can see upto 8 products in your free account and manage your Etsy prices.
For more information about Etsy marketing and Pricewoot, reach us at our helpdesk . We’d be happy to help you!