Wednesday, August 31, 2011

Sweet Sparrow Pricing

Ohh, this is a subject I have been struggling with for a while now...how much will someone pay for what I make? Am I pricing too high for this economy? Am I underpricing my work and consequentially devaluing it and my creative process? It is so hard!

So, I have been researching and reading about how to price items. Here are the guidelines I have decided to follow:
  1. Time. As in, how many hours it took multiplied by the hourly wage I've set for myself.
  2. Experience. I think I have definitely moved out of the "beginner" category and am somewhere in the "intermediate" category. Thus, I will take this into account when pricing. I am not an expert seamstress or quilter like some people are when they have been sewing for their whole life. That is a goal of mine--to someday reach "expert" level, but for now, I know I am not there!
  3. Complexity. I will admit: some items I make are a "wham-bam-thank-you-ma'am" type of construction (in my opinion), and then others take hours and lots of varied skills to complete. Such as embroidered or appliqued pieces. The "easier" pieces will be priced accordingly. But within that type of piece, say like a checkbook cover, I could create one that has more detailing, such as patchwork on it, and then I would charge more.
  4. Materials. They aren't free. I wish they were. Especially the designer fabrics I use. They are worth it because they look and feel exquisite and are unique, but they cost $$$.
  5. Packaging Cost + Time. This is an aspect most buyers don't think about. I know I don't when I am shopping on Etsy. When I see someone charging over $2.50 for shipping I get annoyed, but they are usually doing it because they are using quality packing materials and may be shipping your item Priority Mail. Though sometimes you have to inquire to make sure they aren't trying to rip you off. I try to keep my packing materials and methods as low as possible, because I don't think it's fair to rip people off on shipping.
  6. Photography. It takes time to get good photos that illustrate an item visually. Bottom line: TIME IS MONEY! Especially when you are a SAHM!
 I remember paying $49.00 for a simple medium-sized tote in a designer fabric back in 2006. I still have that bag, and have used it again and again. It is unique, pretty, and well-constructed. This morning I went back into my buying history to see how much I had payed for it because I wanted to see how much I, as an Etsy buyer and not a seller, would pay for a handbag. My jaw dropped when I saw that I had paid almost $50 for a simply constructed bag. But when I thought about the transaction and how much I love and use that bag, I realized it was worth it. The seller had used a quality shipping box (yes, I remember these things), Priority Shipping, wrapped it in tissue paper, put her shop sticker on it, put her business card in it, and wrote a nice note. Then the bag itself was just beautiful to me. I have gotten tons of compliments on it over the years. She did not under-price her work or what she was doing as a seller.

Here are my new pricing categories. I hope that people who visit my shop will understand that I work hard on these items and that they are getting something high-quality, unique, and well-loved by its maker. I feel like I have been putting so much into what I make, and not asking for what they are worth to me and their new owner.

  • Basic Wallet: $14
  • Card Wallet: $14
  • Checkbook Cover: $7 (same price)
  • Chickadee Bag: $28.50
  • Tissue Cozy: $6.50 (same price)
  • Basic Totes: $30
  • Pleated Plover Bags: $40
  • Zipper Pouches (Large): $15 regular, $18 detailed (embroidery/applique)
  • Pocket Clutches: $15.00
  • Wristlets: $15.00
  • Tea Books: $10 (same price)
I love my little shop and working on fabric creations. I hope that customers will continue to find my things on Etsy, and order them and enjoy them the way I did my favorite bag back in '06! :)

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