Wednesday, January 7, 2009

Pricing Your yourself what you are worth!

Alright...hmmmm that title can't possible be right, there is no way I can pay myself a million dollars! hahahah!!! Okay all kidding aside, when we put our stuff out there, we are looking to make money right? We're looking to make back what we have in supplies and fees and time, but also a profit! It's difficult getting your pricing just right and sometimes it seems as though there are people undercutting you every step of the way, but no worries keep it at what you think and the customer that buys the cheaper item was never going to be your customer to begin with. There are so many threads like this around, that I hate doing a blog post about it, but sometimes people want to hear it from someone they 'know' and I feel like I know you all! Sometimes prices are just too high and that's because the pricing formula may not be right. I've priced some pieces that I knew were overpriced, but was just too lazy to figure it out right then and there. Of course they didn't sell. Remember that if you are interested in Wholesale selling your items, the norm is 50% of your selling price. So be very careful! I price all of my items, so that I can still put them on sale at 50% if they are not selling and make a good profit.
My pricing formula:
Supplies x 2 + 2.00 for overhead (bills and such) + 15.00 an hour + .60 (2 renewals and listing)
I round up to round off the dollar amount as I don't like listings that say 4.75 in my item shop.

Whenever I get a new supply order in, I count every single piece in the batch (even the ones I cannot or will not use) I then divide that by what it cose to purchase and ship or any other fees associated in the cost of the supply (If I went out just for that, I put in some gas money too), this gives me the per-item cost that I then use to calculate supplies pricing. The pieces I do not use head off to a box of my destash stuff and then when I go to sell my destash, it's all pure profit outside of the fees and photography time, since I built that into the cost of the supplies that I do use.
Hope this helps you guys!!


pnkgeeni said...

Your posts are always so helpful.

Ooty said...

thanks! this is great help!

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