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Hey folks! Just wanted to share a little bit of info on what goes in to my small business, Nico's Fan Niche- Today, the topic is pricing! Figuring out prices on items can always be a struggle- I want to make things as affordable as I can, but I'm also trying to build my brand and make a living. There are definitely items on my shop that I'm still undercharging for, but I've found something that helps is to consider the 'biggest discount scenario'.

For me, I sell a lot of small, low-cost items. Because of this, my returning customer coupon offers 40% off any purchase over $40 USD- It's better for my shop's growth phase at the moment to encourage people to come back and make a bigger order at a bigger discount, than to offer a small discount on buying the exact same item again. So let's break down what could happen when somebody buys one of my button-up shirt designs. It's no secret that I partner with Merchize to produce these, and in that space...

Somebody purchases a button-up for $40 USD. This is their second purchase, so they get %40 off, bringing the price down to $24. As these products are fulfilled with shipping included, it doesn't charge shipping separately. Merchize charges me $15 to produce the shirt. The buyer doesn't live in the US or the EU, so I'm also charged $9 for shipping. Etsy charges me their fees as well, which come out to around $4 for this product. If you've been keeping up with the math- In this situation, I've received $24 for this sale, and I've been charged $28 between Production and Fees. In the 'worst case' scenario, at my current price, I lose $4 selling a shirt.

I won't be increasing the prices with that math in mind, though- Because in the best case scenario of a US-based customer paying full price, I have about a $20 profit, and that particular perfect storm is not likely to happen very often. A US customer using the %40 discount leaves me with about $5 of profit for my efforts, so that's the measure that I'll continue using: Setting my items to non-discounted prices that, as often as possible, still leave me in the green when they're discounted. I'm not sure if that's the greatest system, but it's the one that seems to work for me so far-

And, if you're interested in these shirts, but can't afford them at the full price- Just reach out! I'm sure we can find a compromise that keeps us both in the green ;3 and if you CAN afford them at full price, consider doing it, so I can cover for those every-so-often scenarios where it turns out I lost money on a sale~

Description

Hey folks! Just wanted to share a little bit of info on what goes in to my small business, Nico's Fan Niche- Today, the topic is pricing! Figuring out prices on items can always be a struggle- I want to make things as affordable as I can, but I'm also trying to build my brand and make a living. There are definitely items on my shop that I'm still undercharging for, but I've found something that helps is to consider the 'biggest discount scenario'.

For me, I sell a lot of small, low-cost items. Because of this, my returning customer coupon offers 40% off any purchase over $40 USD- It's better for my shop's growth phase at the moment to encourage people to come back and make a bigger order at a bigger discount, than to offer a small discount on buying the exact same item again. So let's break down what could happen when somebody buys one of my button-up shirt designs. It's no secret that I partner with Merchize to produce these, and in that space...

Somebody purchases a button-up for $40 USD. This is their second purchase, so they get %40 off, bringing the price down to $24. As these products are fulfilled with shipping included, it doesn't charge shipping separately. Merchize charges me $15 to produce the shirt. The buyer doesn't live in the US or the EU, so I'm also charged $9 for shipping. Etsy charges me their fees as well, which come out to around $4 for this product. If you've been keeping up with the math- In this situation, I've received $24 for this sale, and I've been charged $28 between Production and Fees. In the 'worst case' scenario, at my current price, I lose $4 selling a shirt.

I won't be increasing the prices with that math in mind, though- Because in the best case scenario of a US-based customer paying full price, I have about a $20 profit, and that particular perfect storm is not likely to happen very often. A US customer using the %40 discount leaves me with about $5 of profit for my efforts, so that's the measure that I'll continue using: Setting my items to non-discounted prices that, as often as possible, still leave me in the green when they're discounted. I'm not sure if that's the greatest system, but it's the one that seems to work for me so far-

And, if you're interested in these shirts, but can't afford them at the full price- Just reach out! I'm sure we can find a compromise that keeps us both in the green ;3 and if you CAN afford them at full price, consider doing it, so I can cover for those every-so-often scenarios where it turns out I lost money on a sale~