{"id":22671,"date":"2026-03-06T16:11:46","date_gmt":"2026-03-06T16:11:46","guid":{"rendered":"https:\/\/westernbid.com\/%d0%b1%d0%b5%d0%b7-%d0%ba%d0%b0%d1%82%d0%b5%d0%b3%d0%be%d1%80%d1%96%d1%97\/when-low-prices-kill-sales\/"},"modified":"2026-04-25T12:57:59","modified_gmt":"2026-04-25T12:57:59","slug":"when-low-prices-kill-sales","status":"publish","type":"post","link":"https:\/\/westernbid.com\/en\/blog\/when-low-prices-kill-sales\/","title":{"rendered":"When low prices kill sales: why sometimes it is necessary to raise prices"},"content":{"rendered":"\t\t
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A low price for a unique handmade item often deters buyers, raising doubts about the quality and authenticity of the product. In 2026, on Etsy, the price signals a brand: it conveys the craftsman’s confidence and the value of their work. Increasing the product’s price combined with quality visuals helps attract conscious customers, reduce returns, and make the business sustainable.<\/p><\/blockquote>

Hello everyone! This is Masha Kaganovich, a marketer at Western Bid. Today I will say something that might sound very wrong. Sometimes, to boost your sales and conversions, you need to raise prices.<\/p>

And this is not just motivational talk, yes, just to say something and sound nice. I actually encounter this mistake with many sellers, especially those selling handmade products. The core problem with low conversions is that they have very low prices.<\/p>

Now I will share cases and examples where this rule applies. I will also explain how to correctly raise prices and experiment with them in your store<\/a>. And, of course, I will also discuss cases when you should not raise your prices.<\/p>

Why this sounds wrong<\/h2>

So, why does this idea often sound wrong in people’s heads? Because we are used to the fact that value propositions are primarily regulated by, not always, but mostly, the price.<\/p>

That the lower the price, the more sales. We often see, on Etsy and eBay, that products with lower prices sell better, become bestsellers, and so on. Yes, price often is the main tool, the main means, to increase sales, especially for commodity products.<\/p>

In other words, a commodity is something that looks the same regardless of who sells it. It is identical, regardless of the seller.<\/p>

Example with T-shirts<\/h2>

Let\u2019s take regular T-shirts as an example. Since we’re talking about commodity items, the most common example is T-shirts. If these are plain T-shirts without any special design, normal, standard T-shirts, then their price should be around 9, 10, 14, 15 dollars, maybe up to 17 dollars if they have a cool, interesting print.<\/p>

In principle, when it comes to T-shirts with similar prints and quality, they should be sold at approximately the same price. It’s hard to vary the price if the quality of your T-shirt isn’t significantly different from others. But as soon as we start talking… I mean, if something about it changes. Color, size, a small new feature, different material. Well, something original, unique. At that point, this product stops being a commodity immediately.<\/p>

And in this case, the price is not just a number; it also carries some additional meaning. Understand that handmade products are not mass-produced. Etsy is not a marketplace like Amazon. But trust, branding, your photos, and overall positioning can be much more important than just a low price. They can allow you to set a higher price.<\/p>

What happens with too low a price<\/h2>

If you stay at this lower level with great photos and a wonderful product, it often leads to a misunderstanding of your brand. It leads to devaluation, meaning people will look at the product and think it’s not genuinely handmade, or that it\u2019s not made from natural alpaca wool, or that the picture wasn’t painted by you.<\/p>

Now, I will give examples, show how this really looks in practice. Almost any handmade item can also be mass-produced; it doesn’t matter. But if it differs, if it’s not a commodity, say, because of better quality, color, a pom-pom in a different style, or if it uses more modern seasonal colors, or if it’s made from alpaca wool \u2014 then this item immediately ceases to be a commodity.<\/p>

And in this case, the price is not just a figure; it\u2019s attached to something more. Remember, handmade products are not mass production. Etsy is not a marketplace like Amazon, but trust, branding, your photos, and overall positioning can be more critical than price. This can justify a higher price point.<\/p>

What happens with prices that are too low<\/h2>

If you keep your prices low despite having high-quality photos and an excellent product, it often results in a misperception of your brand. People might think the product isn’t handmade or that it\u2019s cheap Chinese manufacturing, which devalues your brand and decreases trust.<\/p>

We will look at real examples \u2014 almost any handmade thing can be mass-produced, but if it differs \u2014 quality, color, special features, or materials \u2014 then the price should reflect this. For example, a hat made from alpaca wool shouldn\u2019t cost $28 if the wool itself is expensive. Price variation is influenced by many factors, so the price for a simple, commodity hat can range from $20 to $70, remaining a bestseller. For instance, a $70 hat can be a bestseller, while others priced at $20-30 sell badly. Even at $10, sales are practically non-existent.<\/p>

The impact of price on buyer perception<\/h3>

Price<\/p><\/th>

What the buyer thinks<\/p><\/th>

Business consequences<\/p><\/th><\/tr><\/thead>

Too low<\/p><\/td>

“Probably Chinese or a cheap copy. The quality is low.”<\/p><\/td>

Low conversion, suspicion of fraud, unprofitable business.<\/p><\/td><\/tr>

Average\/Market<\/p><\/td>

“An ordinary product, like everyone else’s. Comparing prices.”<\/p><\/td>

High competition, fighting for every dollar.<\/p><\/td><\/tr>

High (Premium)<\/p><\/td>

“A unique, author\u2019s piece. The craftsman is confident in quality.”<\/p><\/td>

Loyal customers, high margins, increased brand status.<\/p><\/td><\/tr><\/tbody><\/table><\/div>

What the price communicates to the buyer<\/h2>

So, what does the price tell us when a person sees a certain price? It communicates the quality, the seller’s confidence, their brand, as well as who the target audience for your product is.<\/p>

Let\u2019s take the example of leather gloves. I searched for leather gloves. The price range for gloves varies, as I picked a common product for reference. From $20, the cheapest, possibly vintage or second-hand, to more expensive options like $145, $60, $45, and so on. These are examples of price ranges for different products.<\/p>

If you go beyond this range \u2014 for example, selling gloves for $300 or $400 \u2014 it could significantly reduce your conversions. Conversely, if you sell gloves that should be valued at $70-80 for only $20-30, it might also greatly reduce conversions.<\/p>

Real example with gloves<\/h2>

Let\u2019s consider a glove priced at $17.49. First, what I think when I see this glove: it’s probably not made of real leather; it’s likely mass-produced in China. $17 doesn\u2019t match the quality of a well-made, elegant glove. That price is suspiciously low.<\/p>

On the other hand, I see a beautiful, interesting glove, a unique style not common in every shop. Priced at $45, it\u2019s purchased by two people, which seems reasonable. The store, founded in 1861, has an established brand reputation. A glove like this, meant to look elegant \u2014 in its photos and presentation \u2014 should probably cost around $59. If the seller listed it at $20, I would immediately think it\u2019s a quality issue, maybe a scam or cheap Chinese manufacturing.<\/p>

Your price must reflect the quality you offer, including high-quality photos, branding, and added features. Raising the price can sometimes help, but only if the product’s perceived value supports it.<\/p>

Story with calendars<\/h2>

This next example is based on a real case. I won\u2019t show the actual shop I analyzed, but it\u2019s very similar and I’ve seen many such examples. Let\u2019s consider a shop selling calendars, with nearly 4,500 sales, probably created in Canva, using images not drawn by the seller.<\/p>

For example, a calendar priced at $24, which includes the paper and a stand \u2014 the stand itself costs $12, and the whole set is $36. This fits with their store’s other products.<\/p>

Another example is an artist in Colorado painting with watercolor. She has only 18 sales and sells a beautifully illustrated calendar, painted by herself, for $18.75, including the stand. Without the stand, it\u2019s $18,75 minus $0.75 for the stand.<\/p>

Reviewing this, the $24 and $36 prices show a typical markup, but the artist’s stand costs only $0.75, so it appears cheap. Her photos make it look dull and unappealing. The perception is that she might have printed these at home or on the cheap, which devalues her product.<\/p>

What should this artist change in her listing? First, name it, e.g., 2026 Hand-painted, Handmade. Instead of just showing a calendar that repeats others in her shop, she should show how she\u2019s painting the images herself<\/a>, even if they are prints. Original artwork is more valuable. The calendar should be priced at least $40, reflecting the effort and quality.<\/p>

What you lose by raising prices<\/h2>

Often, when you set your prices too low (up to $25-30), you\u2019ll lose some customers. These are usually bargain hunters, asking many questions and ultimately not buying. These are emotional buyers who regret their purchase afterward, leading to returns and complaints.<\/p>

Raising prices attracts more thoughtful customers who value your work, are less emotional, and appreciate the quality and effort you put into each item. Sometimes, cheap customers are the most expensive in the long run.<\/p>

Selling at a loss<\/h2>

Often, when a seller prices handmade items very low, they\u2019re selling at a loss. It\u2019s hard to imagine someone making handmade items, paying international shipping, customs, offering 30-day returns, answering customer questions, and investing in marketing, selling at $10-15. Usually, that\u2019s dropshipping, AliExpress replicas, or similar \u2014 just cheapware, often lowered below cost price, flooding the market.<\/p>

This creates a brutal competition among newcomers. They don\u2019t build a brand, don\u2019t understand SEO, don\u2019t take professional photos, and sell CHEAP, often below cost. This isn\u2019t a sustainable business model.<\/p>

How to correctly raise prices<\/h2>

The first thing is to ensure your listing reflects the higher price \u2014 professional photos, good lighting, well-chosen angles, blurred backgrounds, seasonal showcases, and showing your process, e.g., how you paint or craft your product<\/a>. Your videos and photos should reinforce the value, including that it\u2019s handmade and intended for your target audience.<\/p>

Maintain clean, attractive listings. If unsure, I offer individual consultations to help optimize your shop. Gradually increase your prices by testing. If a product costs $17, raise it to $20, observe the conversion, then move to $23, $25, and so on. Use different listings to test different price points, gradually increasing. Find the point where increasing the price still boosts conversions, then stop before declines happen. Don\u2019t apologize or justify \u2014 experiment gradually and confidently.<\/p>

When NOT to raise prices<\/h2>

There are many cases when it\u2019s better not to raise prices. If your product is mass-produced, if there are competitors with similar items at lower prices with comparable visuals and positioning \u2014 don\u2019t raise your price.<\/p>

Similarly, if your listing has poor quality photos, weak videos, poor descriptions, weak branding, or if you don\u2019t understand your target audience, your efforts should focus on improving these components before increasing prices. Also, long delivery times or high shipping costs (over 25% of product value) can hurt sales. Such issues need to be addressed to enhance your shop\u2019s competitiveness.<\/p>

The problem of expensive shipping<\/h2>

One major reason that kills sales is when shipping costs are over 25% of the item\u2019s price. Customers often abandon their cart when they see high shipping costs, especially if they realize it doubles the price. This kills their enthusiasm and willingness to buy.<\/p>

What to do in this case? Raise your product\u2019s price if necessary, but don\u2019t leave the shipping cost exorbitantly high. Find ways to optimize or reduce shipping costs, so your customers are not discouraged at checkout.<\/p>

This is not about greed; it\u2019s about sustainable business<\/h2>

Often, raising prices is not greed \u2014 it\u2019s about building a lasting, sustainable business. As handmade artisans, you should value your work, understand that it\u2019s impossible to compare a unique item made with love and hours of effort to mass-produced goods from factories in China or Vietnam. The value of handmade, one-of-a-kind items is inherently higher, and buyers understand this, too. So, appreciate your work, and we at Western Bid will support you in being successful. Thank you very much for your attention!<\/p>