What’s it Worth to You?

What a fantastic Tuesday - I've got some great ones to show off this Saturday during the weekly wrap-up! Still struggling through all the rooms in my house, searching in vain for my digital camera that has apparently gone MIA ... driving me crazy, with some of the beautiful new printed items that are coming out and I can't even show them off!

Anyway. So yeah, long design day, a break to run the hubby to an appointment, more design, and I'm finally stopping work now and moving water around the garden doing little happy dances looking at how big the cabbage and tomatoes are getting.

Today's Tuesday Tip is one that comes from the heart, and one that since I've begun putting it into use (finally following my own advice) I've already seen the rewards of. Phwew! So seriously, take a few minutes to look it over and see what you can take away from it to apply to your own business practices.

Recently, I asked for feedback on pricing my items. The question that I was asked in return most often was, “How do you price your items in the first place?” … and I had to admit that I’d been preaching something I hadn’t practiced: going beyond the numbers.

Granted, it’s been more than a year and a half since I wrote my “What to Charge for Your Etsy Products” article, but when I was asked how I priced my products, I was finding myself constantly ashamed to admit that I hadn’t even bothered following my own advice. And it’s good advice. It’s worked for lots of people. I’d somehow fallen into this whole, “We’re in an economic slump, so I really want to be as fair as possible to my customers” thing that wound up – literally – costing me so much money that I wasn't only not earning a profit, but I was putting myself in the hole.

Now, I’m not saying that you need to charge double profit. But there is one thing that I’d like you to keep in mind when you’re pricing your products: never undercharge yourself.

When you set a price on your products, it says something about what you make or represent. The price is, literally, the first indicator of value to a customer. Think about the last time you were checking out a new printer. On the one hand, we know that the $30 inkjet that prints the same number of pages in color as quickly as the $120 one aren’t all that different. Something else tells us, though, that you’re going to get a better quality, longer lasting printer at the higher price. The packaging of the high price printer really focuses on this, too, pitching the quality and uniqueness of its technology.

So it’s about perception. But it’s also about self-worth. You need to think about what your creativity and time are worth, and charge appropriately.

Here’s an exercise taken directly from the Etsy Storque that can get you going:<

Imagine if you will, a complete stranger asks you to create an item (something you currently sell in your shop). That’s not all, they want you to photograph, list and promote this item as well. Whew! “Is that all?” you ask. No, they have one more request: package that item, print a shipping label and drop it off at the post office. Now imagine they want you to do all this for the price you currently have this item listed for in your Etsy shop. Would you do it happily? Would you grumble? Would you deny this task altogether? Reality check: it’s up to you to determine the value of your time and efforts. Make sure you take a step back from your work and your prices and look at it from all angles.