First I'd like to point out some figures for you. Here is how to calculate your percentage of Profit. Take your bottom line earnings (gross) from last year, that is your sales minus expenses. Now divide that by your total sales before expenses . Take that number and multiply by 100. That is you percentage of profit.
Looks like this Gross/Sales x 100 = ?
My profit percentage is 54.96%. If I give a discount of roughly 50 percent, I am giving my work away for free. If I were to give a discount of 60% or more, I am paying my buyer to take my work. I love my buyers, but I don't love them that much.
Now lets take a really good look at what Groupon sites like Heartsy do for us all. I am not selling on Etsy right now, but Heartsy is affecting my sales too, the same way discounters like WalMart affect higher priced Department Stores. Lets take a closer look.
The economy is bad, budgets don't allow the average person the free cash to purchase little pleasures. So when the average buyer sees a discount that is what they will use. You want something pretty? why pay full price? you want soap? why pay full price? Is your merchandise that different from another seller's that if given the choice, they will buy yours over one at a 60% discount? I don't really think so.
So what does this mean to me? (royal me, meaning you). It means that by contributing to Heartsy, by offering your merchandise at a lower, discounted price, you are getting lots of traffic from people who want handmade at below profit prices, and who are not really supporting Handmade. Because if anyone really supports it they will pay a fair price.
You are also devaluing your fellow artisans Handmade Work (just like when your neighbor sells their house for $20,000 less than the rest of the houses in the neighborhood), because if buyers can get it cheaper, why can't your site-mates sell it cheaper too?
There is absolutely NOTHING right with Heartsy. Calculate your profit. If you sold on Heartsy, were you giving away your product for free? So you complain about China product underselling yours? because you just did that to yourself and others at your site and all handmade sites.
I know it's tempting to use Heartsy, but I BEG you to avoid the temptation. There is ABSOLUTELY NO BENEFIT TO ANYONE but Heartsy, who makes money off of their VIP program or $1 off each of your items if you don't agree to the VIP discount.