When a crafter starts a new business, they often find pricing products to be a daunting task. Add wholesale issues into the mix and things will get even dicier. The issue is that most artists undervalue their work and even look to other online sellers to set the standard. Sure, you compete better when you have the same prices as peers but your ability to grow offline will be harder.
Here’s a few ways to determine your product prices for wholesale (or even just in general!):
- Asking for help on the Etsy Forums
Etsians are very helpful with this sensitive subject. Many sellers will encourage you to raise prices because it helps everyone as a whole.
- Working with a Jewelry Calculator.
Don’t be alarmed by the seemingly high prices this thing spews out. After a few months doing wholesale I realized this was very accurate and I even went above what it said at times! Be sure to add ALL your costs otherwise your results will be way off.
- Check your LOCAL competitors
Forget your online competitors and make a trip to a store you want to see your items in. Check out the retail prices of your competitors there because this will give you a very good idea of what your items should be sold for. Be sure to avoid looking at prices of mass produced merchandise like that of H&M because it can be discouraging and counter productive.
- Ask a competitor!
Many indie designers are very willing to give free advice on pricing your work. I spoke with two women (with very successful wholesale jewelry companies) and both were absolutely upfront and honest about how to price my collection.
I'm Justine Smith, a Toronto Social Media Consultant, Problogger & Sales Strategist. I can help you dominate your creative business and build the success you've always dreamed of. To learn more, click 
Asking a competetor is a great option. I think that is what has helped me out so much in my pricing strategy. I’m still working on tweeking my pricing but if you can find a competetor what will be willing to give you honest advice it’s probably one of the best ways to go! I appreciate the etsy sellers who have helped me along the way to get my shop in working order!
Great article!!
.-= Kara and Brooke´s last blog ..Oblong Pink Glass Earrings =-.
Hi Justine- I’m thinking about offering my items wholesale and would love to have a shop like Etsy to simplify the process for retailers. Do you know if Etsy has an option to have “closed shops” – so only selected retailers could purchase items at the lower prices? Or maybe you know of another site that can do this? Thanks so much. Lisa
.-= Lisa Orgler´s last blog ..Hawaiian Shave Ice =-.
Hi Lisa,
No you can’t have your items closed down just for retailers to look at or priced differently for registered businesses. That would be an awesome idea but no, that’s not possible. I heard of one other website like that but I wouldn’t feel comfortable recommending them because it’s not free and I’m not sure they have a good success rate.
You are better on just setting up a wordpress hosted website aimed at retailers or setting up on Etsy at your normal prices and just seeing if you can a) make any etsy sales and b) directing retailers there. But I know from my own experience, a few retailers did not want to look at Etsy to browse.
Hi Justine, What a ball of energy you are! I just need to make one comment that I keep coming back to when I read your advice. It’s an attitude thing. You talk about “slashing your prices for selling wholesale. I don’t really think that this is a healthy or friendly way of looking at wholesale prices. When pricing your work which can be VERY complicated, it is important to start out but using some sort of formula(which can be tweaked. It’s just a starting point) Mine is materials plus labor times 3 for my wholesale price. (No slashing. That’s what I need to make and then if I’m selling retail I double that. (That’s called KEYSTONE.)Some stores do more. It really is hard to compete with those selling jewelry who are pricing any other way though (especially at Etsy), most are. We would all be on even ground (and already set up for wholesale if everyone thought of pricing this way to begin with.I do have a feeling that those starting out don’t take into consideration ALL of the things that are expenses. There are SO many.(That would be a great subject to begin to think about.)
But…. getting back to the attitude thing….. and slashing, which has a somewhat negative connotation. Remember this. The stores and galleries that buy your work are your ALLIES, your friends. They don’t want you to slash your prices. They want you to make a living and THEY also want to make a living. Stores have many expenses to cover to sell your work.
So lets not think about slashing prices. Lets think about creating our prices to reflect our needs, to cover our expenses and maybe even get those who don’t do wholesale yet to think this way. (though I realize that won’t happen in my lifetime)
Keep up the great work.
Pricing is one of the biggest things that bugs me about Etsy. I sell handcrafted pens and I often find other Etsy sellers offering a pen for sale at a price that barely covers the cost of materials much less electricity, labor, or profit!
For example, a Baron style rollerball pen:
$12 kit
$5 blank
$5 for box, sand paper, finish, etc
=====
$22
I sell it on Etsy for $65 (basically tripled) but others sell them for $25???? Do you have any suggestions for dealing with this type of scenario?
I am really looking forward to your Etsy series! Patrick