Tonight I decided to develop a new pricing formula for the books in my Etsy shop. Until today, I had a really simple pricing structure which was basically a set price for each of my standard book sizes - regardless of any other factor. This has been working quite well for me but I recently purchased some paper that costs substantially more than the paper I've been using so I was wondering how I would price books made with this new paper.
So I have developed a pricing formula that seems to make sense so far. Concerning the materials costs, it is the cost of the paper which varies the most in my books. So that is part of the formula. Then I decided to actually price out the cost of the leather, per square inch. In some cases there are other material costs such as paper linings on the leathers so that is included. I have also devised a pricing scale for the various types of bindings that I have. So the more time-consuming bindings will get priced higher...whereas until now, I was charging the same price for a quick binding as a complicated binding.
Now my Etsy shop is full of uneven prices. Earlier today I had a bunch of books that ranged in price from $30 to $33. Now those same books range in price from $29.50 to $37.25. I am curious if anyone thinks the range of uneven prices is not as user-friendly as the more generic pricing with all round numbers; however, the changes were not very drastic with this particular selection of books. Once I start using some of this more expensive paper and doing some different bindings, then I think the formula will be more important.
[Edit: after trying this pricing formula for a while, i've decided to go back to using the round numbers. The formula resulted in prices similar to what I was using anyway, so at least I know it is still the same ballpark. I can still use the formula when I do something new or if the cost of supplies change and that will help keep everything priced fairly, but I'll still be rounding it off to match similar books in my shop.]