So, you’ve created your first few digital products—yay! Now comes one of the most critical (and sometimes trickiest) parts: figuring out how to price them. I remember struggling with this in the beginning, feeling unsure whether I was charging too much or too little. But here's the good news—pricing doesn’t have to be overwhelming! In this post, I’ll walk you through how to price your printables, planners, and journals so you can find that perfect balance between affordability and profitability.
1. Understand the Value of Your Time and Effort
The first thing you need to consider when pricing your digital products is the amount of time and effort you put into creating them. Yes, they’re digital, but that doesn’t mean they’re “free” to make. You’re investing your creativity, time, and sometimes even money into designing these products, so you should be compensated fairly.
Start by asking yourself:
- How long did it take to create this product?
- Did you pay for any design tools (like Canva Pro or Adobe) or purchase fonts, graphics, or templates?
- What is your skill level, and how does that add to the value of your product?
When I first started, I priced my products a little lower than I wanted to because I was new and wanted to attract more buyers. However, as I gained experience and improved my designs, I increased my prices to reflect the added value.
Pro Tip: Create a simple spreadsheet to track how long each product takes to make and any expenses involved. This will help you understand your baseline costs and ensure you’re not underpricing yourself.
2. Research Competitor Pricing
One of the easiest ways to figure out how to price your digital products is by checking out what your competitors are doing. Etsy is a competitive marketplace, and pricing too far outside the norm (either too high or too low) can hurt your sales.
Here’s how I do it:
- Search for similar products: If you’re selling a printable daily planner, search for other daily planners on Etsy and check out the prices. What’s the average price for planners with similar designs and features?
- Look at bestsellers: Focus on the products that have “bestseller” badges or lots of positive reviews. These products have proven appeal, so they give you a solid benchmark for pricing.
- Consider the complexity: If your product offers more features or better design than the competition, you can justify a higher price. On the flip side, if your product is simpler or more basic, you might want to price it slightly lower.
When I first launched my shop, I priced my daily planners around $3.50 each because that was the average for similar products. Over time, I found that customers were willing to pay a bit more for higher-quality designs, so I gradually increased the price as I improved my offerings.
3. Test Different Price Points
One of the best things about selling on Etsy is that you can experiment with your prices until you find what works best. When I started, I tried a couple of different price points for my products to see what resonated with customers. Here’s how you can do the same:
- Start with the average: Begin by pricing your products close to the market average for similar items. This will help you gauge initial interest and competitiveness.
- Track sales at different price points: After a few weeks or months, adjust your pricing and see if it affects your sales. You may find that raising your prices slightly doesn’t deter customers—or even boosts your perceived value!
- Consider bundling: Offering bundles (like a pack of 3 planners for a discounted price) is a great way to increase the perceived value of your products while encouraging larger orders. For example, I created a bundle of 3 different daily planners for $8.99, which attracted more buyers than selling each for $3.50 individually.
Pro Tip: Don’t be afraid to test different strategies! I tried offering discounts, setting a higher price, and even running promotions, which helped me figure out what pricing approach worked best for my shop.
4. Factor in Etsy Fees
Etsy charges a few different types of fees, and you’ll want to make sure you’re accounting for them when pricing your products. Here are the basic fees you’ll encounter:
- Listing Fee: $0.20 per item listed.
- Transaction Fee: 6.5% of the total price (including shipping if you offer any physical products).
- Payment Processing Fee: Varies by country, but in the U.S., it’s 3% + $0.25 per order.
For example, if you sell a digital planner for $5.00, here’s how the fees break down:
- Listing Fee: $0.20
- Transaction Fee: $0.33 (6.5% of $5.00)
- Payment Processing Fee: $0.40 (3% of $5.00 + $0.25)
Total Fees: $0.93
So, you’d earn $4.07 from that sale. Understanding how fees affect your earnings is essential when setting your prices.
5. Consider Your Long-Term Strategy
Finally, think about your long-term goals for your Etsy shop. Are you aiming for high volume and lots of smaller sales, or would you prefer to sell fewer, higher-priced items? Both strategies can work, but they require different pricing approaches.
- High Volume, Low Price: If you want to attract lots of buyers quickly, lower pricing can help get your shop off the ground. Just be careful not to price too low—you still want to make a profit!
- Example: When I first launched, I priced my planners around $3.00 to $4.00 each, which helped me gain traction and get reviews. Once I had a steady flow of sales, I raised my prices.
- Low Volume, Higher Price: If you’re selling a more specialized or premium product, don’t be afraid to price higher. Customers are often willing to pay more for products that solve a specific problem or offer more value.
- Example: I later created a more complex business planner, which took more time to design and offered more features. I priced it at $9.99 and was able to attract buyers looking for a high-quality tool.
6. Psychological Pricing Tricks
Sometimes, a small change in price can make a big difference in how customers perceive your product. One popular tactic is using psychological pricing—this means pricing just below a whole number, like $4.99 instead of $5.00. It might sound silly, but it works! Customers are more likely to see $4.99 as a better deal, even though the difference is only one cent.
Another tip is to offer tiered pricing. For example, you could price one product at $2.99, another at $5.99, and a premium bundle at $12.99. This gives your customers a range of options and allows you to target different types of buyers.
Ready to Start Pricing Your Products?
Pricing your digital products doesn’t have to be stressful. It’s all about understanding the value of your time, researching the competition, and experimenting to find what works best for your shop. Remember, pricing is flexible—what works today might change in the future, and that’s okay!
In the next post, we’ll dive into marketing your Etsy shop and how to get your products in front of the right customers. I’ll share tips on Etsy SEO, social media strategies, and how to drive traffic to your shop.
Stay tuned for Post 5, and happy pricing! Let’s find that sweet spot together.
