Hey y’all and thank you for the grace you afforded me on Friday. Your kind words mean more than you will ever know! I don’t like to miss our weekly video with chat; but, with all that is happening in the world my heart and energy needed to be redirected. I spent the weekend reflecting and replenishing myself and am feeling better. I hope you were able to find some peace as well.
As promised, I am here to price out the Lifestyle Tote. If you have watched my previous pricing segments you know that I am a firm believer in valuing our time and talents. Etsy recently announced they are increasing the transaction fee to sell from 5% to 6.5%. They aren’t the only ones raising prices. Everything costs more these days. So, from here forth I will be calculating my hourly rate at $22. That ten percent raise, from $20 per hour, will offset the increases we are seeing across the board (supplies, shipping…).
The first step in our calculations will be to determine the cost of the materials used to make the bag. Mine are as follows:
3.5 yards of material x $12.50 per yard = $43.57
1 yard of Annies Soft and Stable = $6.00
14″ zipper = $2.00
5 hours of labor x $22 = $110
Cost to make and absolute minimum price: $159.57
15% selling fees and shipping $23.93
Suggested price to sell on Etsy: $183.90
For this project, the cost to make and absolute lowest price you should sell the bag for is $159.57. If you will incur additional fees from selling online, add that to this number. On average, that cost is 15% to sell on Etsy and includes shipping within the United States. So, the price I would list this bag for on Etsy is $183.90.
I know many of you struggle with pricing. I hope this year to offer you a new perspective on the subject and empower you to fairly price your handcrafted goods.
Until we meet again, please know the creative genius in me will be celebrating the creative genius in you!