Jewelry Pricing: Wholesale vs. Retail vs. Etsy
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Original Post
I am just beginning to reach out to local boutiques, etc. to sell my work on a wholesale basis, and of course I'm running into that piping hot bowl of crazy that is pricing.
In order to justify calling something a wholesale price, my retail prices have to be at least 20-30% higher. However, setting wholesale prices at a level that still turns a profit (even a tiny one) on my end means that my retail prices quickly skyrocket far above what is marketable here on etsy.
I know a lot of this is due to the fact that on etsy one is competing with a huge pool of hobbyists -- people who aren't concerned with turning a profit, necessarily, and are just out to cover their materials cost and support their crafting habit. That's all well and good, but how does one compete?
Anyway, I was just wondering if other jewelry artists out there had suggestions regarding the pricing issue. Once my etsy shop is more established, I know I'll be able to support slightly higher prices, but right now I don't think I could be marketable with items in the $50 range.
Any thoughts?
Posted at 12:17pm Dec 13, 2009 EST
Responses
I have a question, I have to use my secret account so my wholesalers and buyers don't read this, but I just recently sold an order to a boutique. I was happy with my prices for my jewerly except a few pieces I really did low ball myself on a few. She was a difficult person to deal with and the red flags were when she kept asking how much my supplies are and how much I would sell those pieces online, post dated check and I gave her a "suggested retail price" but in the back of my mind I knew she would raise it 50%. One bracelet was $18.50 wholsale and retail it would be $32.00 i don't give a 50% discount because my items are unique, handmade and the length of time it takes. so when a customer came in yesterday to look at her store she spotted my jewelry and asked how much it was, the owner replied and said she hadn't priced it yet but ended up pricing it at $45.99!!! I know I have no control over how much she prices it still I cannot compete and I am not willing to raise my prices that much so that I don't undercut her shop, she basically did that to herself. I am slowly raising my prices but I can't go that high and she doesnt want me posting on my facebook that I am in her shop because she doesn't want ppl finding me and feeling ripped off from her?? I did put my tags with my site on my pieces but I'm sure she will ripp them off....because she kept saying she doesnt want ppl finidng my site and comparing prices, but really I gave her the best price I could and now I'm feeling like this was a bad idea and wasn't worth the headache from her? Any thoughts on this?
Posted at 10:30pm Jul 4, 2010 EDT
Well ... as andymathis said, wholesale is normally 2x retail, and artisans that sell wholesale are expected to retail their items at 2x wholesale.
But there are exceptions. There are some pple who sell here through Etsy that sell wholesale with only a 30% discount.
BUT ... most wholesalee purchasers won't buy for only a 30% discount.
And you'd need to have a very very unique product for that to work for you. If you're not really unique, then the wholesale buyer is just going to find somebody else that has normal wholesale/retail prices. Fact is there are a bazillion jewelry makers ... and it's easy enough for a wholesale buyer to find another artisan to purchase from.
Posted at 10:59pm Jul 4, 2010 EDT
yes I realize she can sell it for 50% that is not what bothers me I just cannot sell mine higher than hers and yes if ppl do find me they will find that I am selling mine cheaper, as said before I gave her a suggested retail price and even at $18.50 wholesale and she sells it for double it would still be around $40 but she is going for more than that and I can't raise my price and she isn't willing to lower it so she will end up looking like she is ripping ppl off and that isnt my doing. In the future I will increase my prices for wholesale and retail. I guess i just don't know where there is a fair price especially selling online so that I'm not undercutting her when I have already gave her a price I would sell it for if she isn't going to try to match or sell less than me??
Posted at 12:35am Jul 5, 2010 EDT
She also tried being friends with me and I should've just kept it a business relationship just so there are no problems, it also gave her a reason to ask me how much I pay for supplies and how I do things and other personal questions I have learned from this deal. She just seems to be much to preoccupied with my etsy site and people looking me up and that's why she doesnt want me posting that I am at her store it all just seems weird and paranoid....
Posted at 12:43am Jul 5, 2010 EDT
I don't wholesale my jewelry b/c I wouldn't enjoy it BUT, I price my jewelry at FULL retail.
I price them the same here, as I do on a private site.
Posted at 12:45am Jul 5, 2010 EDT
Goddddddaam it I posted in a zombie thread. I am going to bed.
Posted at 12:46am Jul 5, 2010 EDT
Pricing is always a tricky one add all the costs involved including your time then double plus half again is your Etsy price.You may then need to double that price again for boutiques but if they buy from u up front and a number of items give them a little discount :).Don't rip yourself off.
Posted at 12:47am Jul 5, 2010 EDT
Haha,
Years ago, when I first started making jewelry I had no idea about pricing. I sold my jewelry by consignment in my friend's hair salon.
She used to travel a lot and would buy pices then sell them to her customers.
I, being the total noob, asked whhat I should charge. She told me to take the cost of materials and double.
Okay, so I started selling alot there! But she took 50%! So I was basically making my cost of materials back and nothing else. I did this for a whole 6 months, until I one day realized this.
So I asked her to only take 40%. My take was materials plus 10%. OMG, I can't believe how unimformed I was!
After that, I did research so I would never be so naive again.
Posted at 1:39am Jul 5, 2010 EDT
jorgensenstudio said:
You also can separate pieces into different lines of work- some you wholesale & some you list on etsy. they don't have to be the same. :)
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Honestly, that's what I do - not all of my items can be wholesaled. Some are exclusives that I only sell through Etsy or markets, so direct sales. Some I strip down to the bare bones, in order to be able to also sell them locally in boutiques.
In Hamburg, consignment means 50% off - some products just take too long to support that.
Posted at 1:48am Jul 5, 2010 EDT