Profit Margins

I read an old Etsy blog this morning about pricing your handmade items correctly. I've been concerned that my prices were a bit too low for a while now, but I haven't had the time or the tools to sit down and work the numbers out. The blog post is called 'A Simple Formula for Pricing Your Work' and it helped get my started. I still need to figure out the exact cost of materials for each kind of item I make, and then there's my profit margin, too. Shesh... I feel overwhelmed already!

From this chart I made using the info I found on Etsy I know my base price for every item is $5. Then I need to add material costs and my profit margin to get the wholesale price. They say to double the wholesale price to get the retail price. I don't know if I will double it until I see all the numbers. I want to make affordable jewelry!

I've been told by some customers that my items are too under-priced for the time I put into them and that they'd sell faster at a higher price because buyers don't mind paying more for handmade items. I've been told by other people that my items are priced just right and I'd risk loosing customers if I change my prices now. It's one of those "rock and a hard place" situations.

If you're a seller and you have any feedback for me please leave a comment on this blog. Review my current prices on Etsy HERE. Thanks!