So if you’re making lavender essential oil to sell in your Etsy shop, you’d want a spreadsheet or notebook to keep track of anything you buy to make it such as the oil, the essence of lavender you use, the bottles or containers you sell it in, and the labels you put on the packaging. It’s a lot to keep track of! It can also be helpful to keep all of your receipts handy so you can enter them in later or keep a record of expenses. A digital spreadsheet on Excel or Google Sheets allows you to keep track of your expenses neatly and run calculations easily.
For instance, if you’re knitting a scarf to sell in your Etsy shop, you’d track each of the yarns you use as well as any embellishments (things like patches, glitter, or even tags) you add to the final product. It’s super important that you have a clear picture of exactly how much your spending to make each of your items.
For instance, if you bought a laminator to help make your items, include that in your list of expenses. Etsy charges a fee per item that you’ll want to include in your list or spreadsheet. Taxes can vary based on your location so look online to see how much you need to account for in your sales.
For instance, if you set an hourly rate for $15 USD, and it takes you 2 hours to make your signature handmade scarves, then you’d calculate $30 USD for labor costs. Many professional crafters that sell items on sites like Etsy usually charge an hourly rate of $12-$20 USD to calculate their labor costs.
For example, if it costs you $3. 50 USD in materials to make a custom wooden sign, and it takes you 1. 5 hours to make it, with an hourly rate at $15 your total costs would be $26 USD. That means your wholesale price would be $52 USD. You want your wholesale price to be cheaper than your retail price to encourage a supplier or store to buy a whole bunch of your items.
So let’s say your wholesale price for a handmade necklace is $24 USD. Your retail price would be $48 USD. Keep in mind you can always tweak your pricing and adjust it up or down if you want to.
For instance, if you’re selling detailed prints of the night sky on a specific date, you could up the price because your print could make a great anniversary or birthday gift for someone. So if your normal retail price for a print is around $20 USD, you could charge $25-$30 for a higher demand item.
For instance, if you’re selling hand-stitched face masks for $15 USD apiece, but you see other Etsy shops selling similar items for $5 USD, you may need to lower your prices a bit to be competitive. Be careful not to undervalue your items or try to set the prices much lower than your competition. It could turn into a vicious cycle of you and your competitors setting your prices lower and lower.
For instance, let’s say you make crochet beanies. You could sell 1 for $15 USD and another for $25 USD in your shop. If 1 of the prices does much better at generating sales, use that price! Experimenting and playing around with different prices can help you nail down the best price for your items.
