Opening on Etsy soon: some help please?

Originally Posted by GoldenVenissa

I like the long description - you're painting a picture for the prospective buyer and then providing them with a more factual statement on what the perfume contains. I know I'm more likely to buy something that gives both descriptions.

One of my favourite Etsy perfumers, Wiggle Perfumes, has her 5ml listed for $11 which is, IMO, on the cheaper end of the scale. (Her 15ml are about $30, I think?) $15-18 is still affordable, especially if you plan to sell samples. If I fall in love with a fragrance, I'm more than happy to sell out a bit more $$ instead of buying blind. TBH, and this might sound silly, I won't buy something if it's less than, say $9, because I wonder why it's so cheap - cheap materials?

Also, I find packaging to be a huge factor as to whether or not I'll be a return buyer. Wing and Prayer Perfumes is one of the best stores I've seen for packaging - it seemed more like a gift than a purchased order. One of my favourite things, and probably fairly cheap, is tissue paper to match your store. I know it's petty, but nice packaging makes me feel like the seller likes what they do and cares about their customers.

Originally Posted by Petra Ichor

The most basic 'by thumb' pricing for crafts is:

Cost of Materials + Labor cost + Overhead costs = Wholesale price
Wholesale price x 2 = Retail Price

I've no idea how this compares to the way other small/niche perfumers price, but try it on your products and see if the result falls in your comfort zone.

On Etsy you'll see a lot of people selling below retail and not paying themselves for their time. This is ok when it's a hobby, but gives you no way to expand if you're a small business. The above formula lets you repurchase materials, pays you for your time and gives you a profit which you can re-invest in the business, or (eventually) draw out yourself. If you're paying yourself a wage, and get too busy to cope (here's hoping!), then with the above pricing you'd be able to pay someone to help with orders if you ever needed to.

It's also ok to adjust the formula. For example:

(1.5 x Cost of Materials + Overhead costs) + Labor cost = Retail Price

can work if you're intending to stay small and you're not intending to do much or any wholesale. Don't get too hung up on competing on price, but concentrate on quality of product and quality of customer service. It's always better to sell 1 thing at $25 than 2 at $12.

Remember to add things like Etsy fees and PayPal fees into your overheads. You may also need a small amount as 'self insurance' to cover loss/damage in shipping.

Most buyers on Etsy are from the US, so if you can keep your shipping low it helps, psychologically. You may have to absorb some of the shipping/packaging costs into your product. Being in the EU is a plus for EU buyers though - no import duty, wheee!

I'd pay up to $30 from the EU for 5ml for something good. Who knows how much for something amazing! Probably not blind though, so a sample program would be important.

Originally Posted by GoldenVenissa

Absolutely! I didn't mean to imply you should compete with American prices, which are cheaper given the cost of supplies and etc... I hope I didn't offend. Being in Canada, we pay alot more than they do, and we're just across an imaginery line, being in Europe I'm guessing is still alot more than here. Given the info you just provided, I know as a consumer, I'd be willing to spend alot more, because I know some people charge $10 for simply mixing inexpensive perfume-type fragrance oils with Jojoba. I look forward to seeing your products and hopefully ordering some!