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👉 The Secret Pricing Strategy You Need In Your Etsy Shop 👀

price is so important when it comes to selling on Etsy but it can be tricky to figure out what the perfect price point is price your products too low and you make no profit price your products too high and your listings are no longer competitive the frustration is so real after years of selling on Etsy and a lot of trial and error I've created a system for pricing products that works in two phases to get your products and your listings ranking in the Etsy search while also earning you a healthy profit margin on each sale I'm breaking it all down for you in this video and we're starting right now [Music] well hey there welcome back to the channel if you're new here I'm Kate and my wife Mama Etsy seller and business coach and I'm here to help you start and scale your online business so that you can make a full-time income doing what you love if you're excited about today's video Give a Little Love tap on that thumbs up button and let's dive in alright I'm super excited to share with you my two-phase pricing strategy but first I want to talk about why pricing is even important to think about when you're selling on Etsy the price of your listings can really make or break them and can make or break the success of your shop truly because price does a lot of things for the Shopper when a buyer is looking through different listings deciding what they want to purchase there's a lot that goes on subconsciously in their mind when they see the price point Shoppers subconsciously assume quality based on what the price of the listing is so a lot of times if a shopper sees an item that is priced way low like way under the competing listings they're subconsciously probably wondering like why is it priced so cheap why is it so low there must be something wrong with it the quality must be not good enough for them to be able to price it so low so I'm probably not going to buy that because it's making me wonder like what is up with this listing for it to be priced so low alternatively if there's a listing that is priced way above the other competing listings of similar items a shopper might assume that that is actually better quality than all of those listings that item is made with better materials there was more time and effort and care that went into it and they subconsciously sort of assume that a higher price point equals better quality now whether or not that's true or accurate for that listing is another matter altogether but this is often what's happening subconsciously and I know it's true for me as a buyer I've noticed myself even thinking along those lines when I'm purchasing something price point is also super important because it allows you to be competitive in the market especially on a Marketplace like Etsy where there are tons of sellers tons of similar listings competing in the same Niche you need to use and leverage every single thing you can in your listing to give you the edge on the competition to give you a leg up and to make your listing the one that stands out above the crowd having just the right price point that's in that sweet spot can really do this for your listing now a couple things to understand about pricing and the process of finding that perfect price point for your listings is number one that you have to understand pricing is a process so there's not many times you're just going to nail the right price point right on your first trial a lot of times it is a process of trial and error trying different price points for your different items and seeing what takes off what works the best and adjusting where you need to it's definitely more of an art than a science in my opinion there are people that will just throw a formula at you and say hey follow this formula for every single listing and price according to that no matter what but to me there's a lot more that goes into it because there's so many Dynamics at play when you think about what type of product you're selling what category or Niche you're selling in how much your materials are costing how much of your time and effort is going into the creation process who your ideal customer is and their buying habits there are so many different variables that go into this that will shift your price point and help you to decide what the right price point is and in my opinion a formula just doesn't cut it a lot of times you really have to work with this as a process and perfect it as you go now our goal with pricing our products online is to find that sweet spot price where it's low enough to still be competitive in the market but it's high enough to be earning you a healthy profit margin one thing that is really good to consider also is how much traffic you'll need or how much sales of volume you will need need in your shop to reach your Revenue goals your profit margin or the amount of extra money you're making on each sale as pure profit is going to determine how much traffic and how many sales you'll actually need to reach your goals there are all different types of sellers on Etsy so let's say there is a sticker seller and let's say there is someone who sells those really nice luxurious chunky knit blankets right so we've got a really easy inexpensive digital product on this side and a really time consuming more high-end physical product on this side they're both great products and they both can bring in profit but the sticker seller is probably pricing their items at like one or two dollars each whereas the chunky knit blankets probably priced at like 70 or 80 dollars now yes the blanket seller is going to have more material costs since it is a physical item as well as time costs because it's taking them probably several hours to create this product but at the end of the day I'm willing to bet that that physical product seller is making more profit per sale than the sticker seller which means that the sticker seller is going to have to do a lot more work marketing to drive a ton of traffic to get their sales volume up to the amount that it can build up and reach their revenue goals whereas the blanket seller might only have to sell a few blankets to reach her goals there's no right or wrong type of product on Etsy it's really just what works for you but it is smart to think about that ahead of time especially if you haven't decided on what type of product you want to sell yet and ask yourself if it's the type of product that's going to be less expensive that's not going to have as high of a profit margin do you think you have the capacity to drive those sales and drive that traffic to build up that Revenue okay so let's go ahead and talk about phase one of my two phase adjustable pricing strategy so phase one is where you're starting in the beginning and this is where you're pricing to rank so what I mean by this is your goal in this first phase is not necessarily pricing your products to earn a huge profit margin but you're working with your price point first to get your listings ranking high in the Etsy 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