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Don’t do this! Making your products too cheap.


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There is a shop Etsy that has thousands of sales. BUT the shop is selling an 8 ounce candle for 10 dollars and free shipping.

Do the math. Product creation. Glass, wax, fragrance oil, Etsy fees, and shipping cost box, box, padding postage. Etsy is on a mad dash for cheap products and sales with free shipping to attract customers but who wins here? Etsy not the seller. I don’t get it.

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Reminds me an old joke:

two entrepreneurs were looking for a new venture. They stumbled upon a watermelon field for $1 each and decided to sell watermelons.  
 

They bought a pick up truck, loaded the watermelons and set up a stand on the side of the road 12 watermelons for $10!!
 

They quickly sold out. When counting the money left at the end of the day the total was less than what the watermelons cost. thrilled with selling out they exclaimed, “we need to make more money - obviously we need to buy a bigger truck!”

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I'm in an antique/craft mall with a vendor selling pint soy candles for $10.  Then the owner of the mall has a line she buys and has one lit all the time which is RIGHT THERE when entering and checking out.  I do a little more to my jars to attract customers and hope the fragrance hooks them. ;)  Not the only place my candles are for sale just happy to sell some to get repeat customers.

GoldieMN

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Oh boy, I hate this subject. I always cringe when I see any type of artist/crafter selling their goods for a lot less than they are worth. It's really sad to go to all that trouble and then devalue your own work and miss out on deserved profits. I just don't get it.

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Forgot to  add in shipping box so take out .50 - 1.00.

So profit $1.00

Seller includes free shipping in ten dollars price.

Revenue

$10

Fees for Etsy

$ 0.7

Fees for Payment

$ 0.55

Total Fees

$ 1.25

Cost of Goods Sold (Including Fees)

$ 7.75

Gross Profit

 $ 2.25

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I'm glad people see this! I'm gonna be opening an Etsy store in a couple of months and I refuse to bow down to the typical prices everyone else charges. I've worked hard to come up with my wax combo (still tweaking) and the search for scents that'll last. I'm making melts BTW. My prices will be higher than the rest. It might deter some, but might attract some too. I read all the time about sellers raising prices and getting more business. I've also decided to not go with their free shipping gimmick and just offer a flat rate shipping. I'll be able to cover the excess if it goes over. I'm excited about it!

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