Pricing for handmade jewelry often means walking a fine line and balancing the need for competition without devaluing your efforts and the time it takes to put your creations together. Profitability is the ultimate goal. So it’s important to make a realistic estimate of the cost of each part as well as your overhead.
If you get on the financial side of your jewelry business, you are a professional yourself. Here are some tips on how to get your handcrafted jewelry at competitive prices so you can make the jump into a jewelry store. thriving home industry.
Let’s start with the myth that low prices make products sell faster. This is not always the case, especially with handmade items. As a result, many hobby and craft businesses fail to make a reasonable profit. This is simply because you want the money to come in as soon as possible. It is tempting to believe that the lower it is, the faster the price will sell.
Very low prices can sometimes make customers suspicious. Why so low If someone wants an item (as long as the price is not exorbitant), they will also pay what you ask for.
How much did it cost you to make your handcrafted jewelry?
When it comes to the price of jewelry, one of the most important factors is the direct and indirect costs you incur in purchasing jewelry materials and tools, renting a workspace, reserving your spot at a craft fair, and finally doing the work.
It is important to take a close look at your costs as your pricing strategy should cover your costs and bring you a profit. Direct costs such as the materials used for the design as well as the packaging that you choose for the piece must be individually factored into the price of your jewelry. For example, a larger necklace made of precious metals and gemstones will inevitably have a higher price than a smaller necklace made of wire and pearls.
When setting your price, consider your overhead costs. These are all costs that are not directly related to your goods. For jewelry, for example, the bills would not be an additional cost as they are part of the item you are selling. Here are some examples of overhead costs:
Travel (such as going to shows to buy supplies).
Your office supplies (business cards, paper, pens, etc.).
Your tools (pliers, wire cutters, etc.).
These are important to consider as they will cost you money. If you don’t include them in the cost of your jewelry, you are wasting money. Calculate your overhead costs and determine the approximate overhead costs that you can apply to each piece of jewelry you sell.
Factoring the workforce in your pricing model is key, but it’s also about how you value your time. Take a step-by-step look at your production process and ask yourself how long it takes to prepare the part to the point where it’s ready for sale. Remember to also consider your design process. This can be time-consuming, especially if your particular design process involves multiple models or examples.
The time it takes to create your handcrafted jewelry should be reduced to a minimum hourly rate. If you’re just starting as a professional jewelry company and want to work a few days a week, you need to calculate how much you want to make, add up the overhead, and then divide the total by time. . They plan to go to work next year. This will help you fine-tune your hourly rate and how it should be included in the price of your handcrafted jewelry.
If you want to make volume sales this is something to cover. Many artisans feel exploited by wholesalers, but the rules for wholesaling have already been established. So you have to follow their rules. You can sell your jewelry at a fair, but you have to spend 1 to 2 days at the fair plus additional cash on food, drink, gasoline, etc., while a store can only take it off your hands for a while. a few hours. issued for sale.
Asking this question is important in determining the price of handmade jewelry products. After all, the answer can change and evolve as your jewelry style is cultivated throughout your career. However, if you have a clear idea early on, you can determine the price of your jewelry. If you are selling to independent stores and your product is a significant percentage of your business, your price should take this into account. If you are just starting your career and are just discovering your style, you might want to go to small local craft fairs that are expected to have lower prices. Your designs and how you rate them ultimately determine the buyer. So when it comes to the pricing of your handcrafted jewelry, it’s never worth straying too far from your target price and population size. that you know you are ready to pay for a unique piece of craftsmanship.