Thursday, January 24, 2013

Make Sure Your Prices Include Etsy and PayPal Fees

I know that many of you reading this are fellow crafters and artists. As I was calculating the price for a new pair of earrings it occurred to me that I have been absorbing my PayPal and Etsy fees in my profit. That's not smart. Hopefully you're more saavy pricers than I've been; if not, let me share my finds with you!

Click on the image to go to the site.

This is a two part calculator by fellow Etsian, Gred Ledet. In the top section, Reverse Etsy Fee Calculator, you enter what you need to receive (net) in the top box and the calculator automatically tells you what you should charge (gross). In the second, Etsy Fee Calculator section, you can do a couple of things. First, you can skip the first section and just enter the price you already calculated for your item and see what your profit will be after shipping and handling costs, postage, and material costs. For me, I put in the price I got from the top section and it tells me what profit I'm really going to make after paying for the costs that I usually absorb, like postage and shipping supplies on high-price items; which is additionally a reminder that I should just include those in my price.

If you're just interested in knowing what your PayPal fees are going to be, like if you need to invoice someone directly for goods or services, he has his PayPal Mobile Calculator, too.

There's another calculator I found that's a little simpler and more straight forward to use, to make sure you're charging enough (gross) to earn enough money to cover your costs(net). It's from Craftybase, which sells inventory and sales software for crafters.

Click on the image to go to the site.

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