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I'm struggling, as I'm sure you all have, with pricing items. Keeping in mind that my materials and labor aren't extremely high - I'm trying to find a good price. I don't want to charge too much but also don't want to undercut the price and make my item appear of a lessor quality. Have any opinions on my pricing? Have tips on how you price your items? Thanks for any feedback!
Posted at 10:50 pm May 10, 2012 EDT
Most jewelry designers have a formula for pricing their items which will cover the cost of supplies for that item, all shipping, packaging and business fees plus pay yourself a decent wage. With that said I start with that formula but then adjust for different reasons which can vary from piece to piece.
If you would like to know the formula I use just send me a convo, I would love to help!
Posted at 12:35 am May 11, 2012 EDT
Not sure if you already do but what helps me in pricing items is that I have all of my supplies labeled with the names/prices/qty/size. That way when I make something I can easily calculate the materials per piece/bead/gem used and then add on my time/labor etc. When I price the sterling silver wire I normally calculate the cost per inch of wire that I roughly used. it can be tedious but its worth doing so you don't lose out. You always want to make back the cost of materials plus whatever profit you plan on making and packaging etc.
Posted at 3:47 pm May 11, 2012 EDT
:) No one formula works 100% of the time. Having said that, I normally use this one Labor plus materials plus % for overhead plus profit. Multiply that number. Run a market comparison and adjust as necessary - usually up.
A huge eye opener for me recently was a pair of earrings in the Sundance catalog. I can make an identical pair in 15 minutes even, I charge $20 the pair I looked at went for $50.
I think we all tend to undervalue our work.
Posted at 8:16 am May 21, 2012 EDT
I'm glad I found this tread! I'm currently struggling with pricing my items appropriately. A very kind supporter and fellow wire artist wrote to me and told me that my jewelry is worth so much more than I was charging. She sent me a link that I found very useful and interesting.
This blog post provides a simple formula to start out with.
Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price
Wholesale Price x 2 = Retail Price
Using this formula I've found that I have been grossly under-pricing many of my items. In most cases I am charging less than what my wholesale price should be. I guess I never thought to pay myself for labor...
Similar to what Sam (from sfresa) said, I have found that I can arrive at a retail price I'm comfortable with by multiplying my "cost price" by 3.
I'm in the process of marking all of my supplies with a price per piece, just as Kristina (from PebblesJewelsandMore) suggests, to make pricing in the future a bit easier. I've also made myself a cheat-sheet of the cost per inch of each type and gauge of wire I use. That way I'll be able to keep track of costs and create a very accurate pricing structure for my items.
Having said all this, I have yet to raise my prices. I'm afraid that my returning customers will leave if they see my prices are suddenly higher. If anyone has tips on gently introducing price increases I'd love to hear it!
Posted at 1:36 am Jul 5, 2012 EDT
This is also something that I struggle with. But I am really very new to actually having an open shop.
To be honest, when I make something like the sparrow in my shop, I make it with the hope that it will act like a hook to reel in some potential buyer, but I don't really expect that it's going to ever sell. Maybe I'll get a shock one morning.. but likely not.
If I used one of these formulas then I should be charging closer to $400 for it.. but if I can't expect it to sell for 200 what's the point?
As an artist I have always always struggeled with knowing my own value. I think that's a common trait that we wierdos share.
Posted at 10:05 am Jul 5, 2012 EDT
Julie I have friends who make birds and peacocks like yours - they charge a lot more than that AND they sell. Think about it ok.
Another thing to think about - you have no inventory to speak of. Get that first page filled and at least a couple items on the second page, give your customers something to look at :)
Posted at 8:15 am Jul 6, 2012 EDT