Pricing Our Products We Sell, Things to Consider
Welcome, and hope you all had a great weekend! It's Monday, and I am back to sharing things with building, and having your own business. Last time it was discussed about managing costs, and expenses with your business and supplies. Today we will cover pricing your products you wish to sell. This is always a hard formula to come right out, and tell everyone on what to do. There are things to consider when pricing your items you will be selling. Hopefully after today you might have some ideas to come to terms that are more comfortable for you in pricing your products being offered.
Some things you will be reminded of, and repeated about is costs and that there are a lot of hidden costs with a creative business too. It's always work to keep your costs low, keep your retail prices down, and reminding yourself which of your supplies can be bought in bulk to save cost.
With the "formula" of pricing, your cost will be your total amount of expenses that were done through the process of your creativity. Also, with your shopping of items to resale too. Remind yourself that costs are made up of much more than just the material used to create with. It is good to familiarize yourself with an average of costs that is beyond the material costs.
Things to consider with cost is:
• Any listing fees for platforms used
• Sales fees which could be anywhere from maybe 2% - 5% Again depends on the platform used
• Packaging of products
• Business Cards
• Shipping Supplies and Materials (boxes, envelopes, bubble wrap, peanuts, tissue paper, ribbon, etc)
• Marketing and Advertising Fees
• Paypal or Credit Card Fees (generally around 2-3.5%)
• Small percent of office equipment, and supplies
• Small percent of website and hosting fees
When you first start up things will cost more, expenses will be higher, and you have accumulated prices at that time. Once your business gets up, and running eventually it should be replacing some of these first investments. Once you have paid off that beginning charge your charges that you have per listings should slowly build into your expense account, or savings account for your business.
Something else to consider is your labor. The time it took you to make things, or with your shopping of resale items too.
• Time involved with product
• Time to picture the item
• Listing it
Generally you add all the time it took per listing, and multiply that by your hourly rate of pay. Your pay rate may be lower in the beginning. As your reputation builds, and you grow things will change. Make sure to pay yourself comfortably from the start. One of the fastest ways to burn out would be to not pay yourself. Repeating designs, and relisting them can keep your cost of labor lower.
People are willing to pay for quality, and for creativity of items. So, don't degrade yourself by listing low prices, or using poor photos in your listings. Take the time to do it with quality, and with care for others to see. Keep in mind to also not try to underestimate your customers, and charge sky high prices right away. Things will change as you get further along, and build your name with reputation for online sales.
Every business is different, and unique. I am not comfortable giving pricing formulas to others, and I don't like suggesting some of those I have seen either. Just remember to have the cost of your materials, add your labor, and then either times it by 2 or find a formula that you are comfortable with in your business. Make sure to have the cost of things along with your labor considered is a sure thing. Your total price will either be something of a wholesale price, or a retail price that you choose.
I hope this bit of information with pricing your products was helpful to you. Remember that what I share is not the rule of how to do things, but is giving you ideas of things to consider with your business. Make sure to visit Market Your Creativity as she has shared things extensively with how she sells, what she has done, are things I have been sharing with you, and etc. Nice personable source to use.
Thanks for sharing your time with LilacsNDreams everyone. Happy to have you, and hope to see you again soon! Have a Happy Day!