However, I do take time into account when pricing.
material costs cost to get material to my place time to create (what it would cost to hire someone to do this) packaging (this is things like labelling and measuring - not the shipping packaging, that's separate) time to package
Basically, if I can get the materials for cheaper or do the work myself, that's awesome. But I'm also very concerned about resilience and sustainability in pricing. If I have a huge custom order and I break my arm or my main supplier runs out, how much would it cost to create the item if I bought the supplies at regular price and hire someone to help?
That gets me to my wholesale customer price (which until this year was my bread and butter).
On Etsy, I put the standard retail markup (which is really important to know for your industry) on my item to bring it inline or a touch higher than the same item in the brick and mortar stores. I want to encourage customers to support local stores and I'm happy to have fewer Etsy sales if it gets people buying local. This is a huge part of my branding.
So time is taken into account, but I haven't paid myself a wage yet. But since I own the company and I don't need the wage to eat (yet), I like the idea of having more money to grow the range of products I can make. I have no idea if this is going to be a good business model or not because my understanding of budgeting is excessively basic:
1. don't spend money you don't have.
2. the money coming in has to be a bigger number than the money going out.
3. there will be unexpected expenses, keep a buffer in the account for emergencies.
r ranson wrote:
Historically, during times of economic decline, people return to fibre arts and the demand for yarn and yarn-related tools skyrockets.
So why aren't there more handspinners out there on etsy selling their yarn? Why is my niche empty?
Skandi Rogers wrote:But do they buy the top of the range supplies when times are tight?