👉 The SECRET pricing strategy you NEED in your Etsy shop 👀

About this video

Kate Hayes explains her two-phase adjustable Etsy pricing strategy. She argues price shapes subconscious quality assumptions — priced far below competitors, shoppers suspect poor quality; priced higher, they may assume better materials and care — and that price is a competitiveness lever on a crowded marketplace. Pricing is presented as a process of trial and error, not a single formula, because product type, materials, time, niche and ideal customer all shift the right point. The goal is a sweet spot: low enough to be competitive, high enough for a healthy margin, noting low-margin products (her example: $1-$2 stickers) require far more traffic/volume than higher-priced items (her example: $70-$80 chunky knit blankets) to hit the same revenue goal. Phase 1, ‘price to rank’ / starting price: price below the market average to be irresistible, sacrificing some pure profit (but still covering labour) to gain sales, conversion and search ranking, since Etsy ranks listings higher with more sales volume and conversion. Phase 2, ‘price to profit’ / ideal price: once a listing sells consistently, gradually raise price above the average — but not to be the highest in the niche — for a healthier margin. Using Sales Samurai, she finds a keyword’s price spread (personalized tumbler example: listings from $3 to $55) and average, checks top similar listings, then uses its calculator: input customer price, shipping charged, coupon, labour cost, material cost, shipping cost and ads/renewals; it builds in fees including the 20-cent listing fee, 6.5% transaction fee, payment processing and optional offsite ads. In the worked tumbler example, a $20 price plus $8 shipping, $10 labour, $5 materials and $4 shipping cost yielded an estimated 21% margin / $5.89 pure profit (profit is extra beyond the labour already paid to yourself), and she iterates price and hourly pay until margin and competitiveness balance.

Key takeaways

• Use two phases: start with a below-average ‘starting price’ to win sales and ranking, then move to a higher ‘ideal price’ once a listing sells consistently.
• Never aim to be the lowest or the highest in the niche — price around, then later just above, the keyword’s average price.
• Always build your labour cost into price calculations; the remaining margin is pure profit on top of paying yourself.
• Research the price spread and average for your keyword and inspect the closest competing top listings before setting a price, e.g. via Sales Samurai search.
• Model scenarios in a fees-aware calculator (listing, transaction, processing and optional offsite-ad fees) and iterate price vs. hourly pay until margin and competitiveness both work.

Episode details: published November 8, 2022 · 17:03 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Kate Hayes’s own claims, shared for education — they are not typical or guaranteed.

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