27.10.08

etsy pricing dilemma

I am struggling with online pricing (etsy in particular) with respect to the recent fluctuations in worldwide currencies. I have been watching with interest the way that various independent designers/makers/artists have been attempting to cope with this issue but I'm not sure which way to jump.

Initially I thought it best to adjust my prices on etsy to reflect the price of my goods in Australian dollars...but this is proving to be a very difficult task as the dollar fluctuates by the second/minute/hour/day and I can't keep up. I thought about reviewing it weekly but I'm not sure that I would be happy with that outcome either. It seems fine to adjust my prices in this way at the moment given that everyone wins—Australian customers receive Moyou goods at a reasonable Australian dollar related price and American customers receive Moyou goods at a bargain US dollar price...but what happens when the Australian dollar begins to creep back up? How will customers feel about fluctuations in my pricing? And at the end of the day I wish to cater to a wider global market, so should I keep thinking in Australian dollars or do I need to be more 'global' in my pricing too?

At this stage I seem to be leaning more towards keeping my etsy prices stable and current with the US dollar. I realise that this may discourage some Australian customers from purchasing through etsy at this point in time (given the state of the Australian dollar and its relative worth) but I hope to be branching out more directly within Australia in the coming months and I am always contactable via my blog and email for direct inquiries and orders. This being the case, I feel that keeping a more 'global' perspective for online selling is perhaps the better path to travel for now.

Oh pricing! This could be a question for the ages...it has kept me going around and around and around in circles. I would love to know what other people think about this matter and how you are dealing with it, so please feel free to leave a comment :)

5 comments:

Jon said...

Amy,

Have a look at what oil-dependant companies are doing....airlines, Dow, and the like. Some of them have clear policies on when they will and won't pass on increases in their prices or fuel surcharges.

Your pricing communications stragey is key. Start conditioning customers for more dynamic pricing, but within the bounds ofyour clearly defined policies.

And if you have balanced sales volumes in the US & AU, the swings and roundabouts might balance themselves out.

Regard,

Jon

glorydaze said...

This problem is driving me mental. I have recently opened an online store which is entirely in AU dollars so I have been adjusting my etsy prices to match up with them as best I can, but it is a major headache. It would be much easier if etsy had the option of listing in other currencies. Apparetly it is on the cards.

I love you fabric designs by the way!

Jesse said...

I'm having the same problems. For the moment I'm keeping my prices in line with US dollar prices for similar items on Etsy, as the site is so US-centric. I'm adjusting my shippping prices, though - and I refund shipping if the quoted price is higher than what I pay on the day I ship. (South African buyers tend to contact me for a Rand price before they buy.) Currency conversion on Etsy would be glorious!

Melanie Gray Augustin said...

I so know what you mean! I've decided to keep my prices in line with the US$ for Esty. My biggest problem has been postage for my eBay store - I have to convert it to yen! And that's downright nasty at the moment!

I'm going to be working on my store tonight and am thinking of putting up a special offer to Aussie customers to buy from me directly to get a better price.

Michelle said...

As an Australian based Etsy shopper, I think keep it in US dollars, but have the option of contacting direct for orders in AUD.

Beautiful blog and lovely work!