#128 - How To Price Your Etsy Products: A Walkthrough

If your price is too low, it's going to do one or two things.

It's going to make zero sales because people don't trust you.

They're a bit sceptical as to why it's that price.

Or you'll make sales, but then you're not going to have a healthy business.

You're going to literally be having all these orders to do, looking at your bottom line at the end of the month and being like, where's my money? So when beginners are pricing, they often only count very surface level things like materials, because that's the easiest cost to actually see.

But inside that should also be time, packaging, tools, fees, mistakes, admin, and also energy.

So when it comes to pricing your items for sale on Etsy, here are some really big mistakes that I see.

The first one is copying competitor prices because that just seems like the easiest way to just get it done.

Someone else's low price actually shouldn't mean anything about you, your products, your brand or your business as a whole because that low price doesn't necessarily mean that they have found the right price.

They actually might be undercharging as well.

And also you don't know what's going on behind the scenes.

They might have cheaper supplies, faster processes, different packaging or lower expectations for profit.

And again, new sellers often price cheap because they think that is what is going to equal more sales.

But again, that's quite a surface level way to look at it.

Cheap products does not mean you are going to make a stellar product.

amount of sales but also being cheap is not a plaster over your listing problems okay you can't band-aid over unclear photos weak listings bad sales copy poor trust or just low buyer demand a low price can actually attract bargain hunters but it's not actually going to attract the right buyers So let me demonstrate this point on screen.

Let's say you have product A and you have product B.

Now, if you listen to the podcast version of this, you'll get what I'm doing here, but there's literally A and B on the screen.

Now, let's say product A is your product and that's 20 pounds.

Product B is someone else's product and that's five pounds.

Let's say that we are selling hair bows here, okay? Now, you are looking at product B and you're thinking, oh, well, everyone's just gonna buy product B because if mine's 20 pounds, why are they gonna buy that? Why would they not just go and buy the five pound version? The reality is, though, is that this listing is probably using the five pound price as a crutch to cover up other listing issues, things like photography, things like titles and tags.

Their marketing version, if you can even call it that, is they are just literally slapping a cheap price on it and just calling it a day.

Now, the other thing as well is is that people are gonna look at that and go, oh, is it actually a handmade hair bow or is it something that's bought in? And you have probably felt this yourself when shopping online, people are skeptical.

So a cheap price is only going to make that worse, all right? Now, if you have your 20 pound price and your photos are stellar your target market you have down your branding is just awesome it attracts the right person people trust you you have reviews there is no reason why sally who's looking for a hair bow for her flower girl is gonna much rather buy your 20 pound hair bow because she knows it's gonna arrive in time it's gonna be right it's gonna look the part versus someone's five pound product where their photos, target market, branding, reviews, trust, et cetera, any good.

Now, the other thing you're not seeing here is straddling those two AB listings.