Hi,

How do you go about pricing your finished jewellery pieces?  Do you use a certain formula that includes the cost of taxes, shipping, materials and your time?

Thanks in advance for everyone's advice. 

Hi, This topic came up recently in the Bead Talk folder (and also in either this folder or the seed bead folder), so you might want to check through the back posts. There's a pricing formula available for download on the Eni Oken website. People use different formulas.

Rhonda

 This subject has come up a lot here. Try doing a search on here and you will find several discussions. Lots of people do 3 x the costs of supplies plus labor.

I  total up my cost of beads & findings (which has the shipping cost already figured in the per-bead amount), double that, and add sales tax.  At this point I don't charge for my time.  I know there will be many who frown on this, but since I live in a rural area with a horrible economy my customer base will not pay that kind of price.  I would rather sell a lot of pieces at a decent price than a few pieces for a hefty price.  So far it has worked well for me.

I should add that I use only sterling silver or gold filled beads, Swarovski Crystals, and lampwork beads that are made by artists--not mass produced, and I do not use stretch cord or thread.   So already my cost to make a piece is substantial. 

Alice  

Hi Alice,

I feel the same way and living in a rural area is the main reason I do not charge for my time as I enjoy doing the beading. I do try to charge based on the economy in the area and what people may be willing to pay. I haven't sold alot, but I have given a lot away to friends and family, so no profit, but the comments I receive are well worth it.  I use delicas and Swarovski mainly in my pieces. The issues I have dealt with is most people in this area are not willing to pay what the piece is worth. I know some people have told me that I am not charging enough, yet they haven't bought it either. I can't win for losing it seems. I have a few pieces for sale in a local stained glass store and she sold a few pieces, but it isn't enough to support my bead habit. I have about 150 pieces laying around my house. I tried a local craft show once. The weather sucked and I think maybe 25 people showed up for the whole day. It only cost me $10.00 to rent the table, I sold nothing, but I did learn some new things about selling. I am glad I invested that money for an education on selling. I know it takes a while to build a business and I am working on it. I'll keep on beading and stay as positive as I can.

 

Dorrie, I've never showed my pieces at a craft show but I've been to a lot of them.  My experience was that people going to craft shows (at least in my area) are looking for cheap, cheap, cheap.  I'm going to try to find a craft show in a more upscale area and see how things go there, but will have to watch out for the booth fee.

Have you tried home shows?  I've had a few in my home and they have always been a huge success.  At each one I've had at least one other vendor there and sometimes two or three others.  This gives you more people to invite since each vendor has their own customer base, which means more people attend, which means more people to buy, buy, buy!  In my experience, the majority of the ones who attend are there to buy. 

I'm getting ready to have my first show in someone else's home, which is in an upscale area.  I'm thinking I can re-price my pieces for that just a little higher and see what happens. 

You've got 150 pieces laying around...?  That's a lot--and I thought I had a lot with just over 50!  Try to branch out and use a handmade glass bead made by artists, or use some sterling silver with natural stones.  Maybe with a variety of items you will have more sales.  I always have loads of earrings available too.  That way if they want to spend money, but not a lot, earrings are a great comprimise and you still make money (earrings can have a great markup).

Alice

Hi everyone, Yes, its a big question that what should be the selling cost of our finished pieces of jewelry. Sometime i find it very difficult to finalise a SP for my items. There are many things which i have to include in my pricing. But after all this, iam selling my jewelry st the best wholesale prices. All the prices at my website are the best wholesale prices. My website is for both wholesalers as well as for retail customers. People can even order bulk quantities as well as order a single piece in any design & it will be couriered to you at the most reasonable prices. Consumer satisfaction is our main aim. Please visit our url's below. Thanks. Amrita. http://jewelry-shop.kriviinternational.com http://www.kriviinternational.com

Hi everyone, Yes, its a big question that what should be the selling cost of our finished pieces of jewelry. Sometime i find it very difficult to finalise a SP for my items. There are many things which i have to include in my pricing. But after all this, iam selling my jewelry at the best wholesale prices. All the prices at my website are the best wholesale prices. I tried to stick to giving my best prices to my customers so that i can supply them with jewelry at best reasonable prices. Thanks. Amrita. http://jewelry-shop.kriviinternational.com http://www.kriviinternational.com

Thanks everyone for your input.

I  guess my calculating will have to be a little different due to the fact that I have to add in currency conversion (when the Canadian dollar wasn't at par with the U.S.), extra shipping costs and duty.  This makes pricing a bit of a challenge since you still want your pieces to be marked at a price where people won't walk away because it's too high.  Yet you do want to cover your costs plus your time.  Hmmm..another challenge to deal with!

Thanks again.

 

This looks lik spam.

I freaking HATE spam. I thought this problem was addressed when this site changed. 

 

amanwani:

Hi everyone, Yes, its a big question that what should be the selling cost of our finished pieces of jewelry. Sometime i find it very difficult to finalise a SP for my items. There are many things which i have to include in my pricing. But after all this, iam selling my jewelry st the best wholesale prices. All the prices at my website are the best wholesale prices. My website is for both wholesalers as well as for retail customers. People can even order bulk quantities as well as order a single piece in any design & it will be couriered to you at the most reasonable prices. Consumer satisfaction is our main aim. Please visit our url's below. Thanks. Amrita. http://jewelry-shop.kriviinternational.com http://www.kriviinternational.com

Modified clone of spam. 

 

amanwani:

Hi everyone, Yes, its a big question that what should be the selling cost of our finished pieces of jewelry. Sometime i find it very difficult to finalise a SP for my items. There are many things which i have to include in my pricing. But after all this, iam selling my jewelry at the best wholesale prices. All the prices at my website are the best wholesale prices. I tried to stick to giving my best prices to my customers so that i can supply them with jewelry at best reasonable prices. Thanks. Amrita. http://jewelry-shop.kriviinternational.com http://www.kriviinternational.com

 This was always very hard for me, but now I use Jewelry Designer Manager, a software program made for people who make and sell their jewelry. I think the lowest priced version is around 80.00, but it's well worth it. I cannot believe how I was underpricing. Also, it keeps up with your customer base, addresses, pieces bought, etc., and also you have a record of all  your finished pieces including pictures.

Hugs,

Cluny 

 That software does look pretty good. Putting in the information will be time consuming so one would have to be dedicated to do that, although the work would pay off in the long term.

 I use MS Access that I set up, which can store photos and gives me reports at a glance of monthly sales, average spends and grand total. All helpful for the tax man. Excel is a great starting point, but if you know someone that can teach you Access and set it up for you, it is even better and more versatile.

HI,

I use 2 x materials plus $6 per hour to keep it reasonable.  Materials can be a matter of discussion also.  Should you charge twice what you paid after shopping around and getting a really good price, or twice what the consumer would pay at a bead store?  My strategy is to keep a spreadsheet of what crystals and findings usually cost me so that if I get a good deal I am able to enjoy the savings.  The hourly rate is important because you should value your time.  Already, I am not billing for research or shopping time, or organizing my workspace time, just the time it requires to make the items.  For instance, a strung necklace might only take 20 minutes, so the time costs are $2.  But a spiral seed bead rope might take 5 hours, so the time is worth $30.  Does that sound about right to others?

Karin

 

 

Actually, it takes very little time to enter the components in the Jewelry Designer Program; I thought it would take forever, but now I zip through very quickly. And when you think about how much time you can spend looking for things if you don't have these records, it's downright speedy!

Hugs,

Cluny

 

 It was a brilliant idea for someone to design that software. Wish I'd thought of it!

 I agree with all the above. In theory I double the component cost then add for my time making the piece, however I do have an unbusinesslike habit of then deciding I haven't a hope of anyone paying that and dropping the price!

I work with interantional artisan lampwork beads, so component costs are high. In contrast, last night I sold a simple sterling chain necklace with gemstone drops for $60. Based on the formula above I should only have charged about $20. Go figure. I think the unknown element in the "formula" is the factor of "perceived value" by the buyer. In the UK lampwork glass beads are not well known by the general public, so they do not understand the skill and time involved in making them. I still get asked if designs are painted on .

The lady last night was happier to pay quite a lot for an item that was more conventional, and more like what you see in High Street shops, rather than spend the same money buying a bargain work of art in the shape of a lampwork bracelet.
 

This is always a balancing act.

  When you buy beads mark on the little plastic bag exactly what they cost you.  If seed beads are used, then do an average of the types and prices you paid for them.

  Calculate your material cost - being sure to include x yards of thread or wire, and all findings.  Take this price and multiply by 2 - then add your labor (you have to do this step or you are working for nothing).  Many beaders use $12. per hour.  After beading for a while you will know the time it takes to do peyote stitch or another type of beadweaving.

  The big thing to remember after all this - is to use this figure as your wholesale price.  This wholesale price is only if you are selling to a store that will be marking it up, usually doubled for retail.  If the piece costs 40. (wholesale) then the retail will be $80.  If you sell at a craft fair then you should charge 80., and no less.  Any store that buys from you will not do so again if you undercut your prices at a show. 

Helen

that's funny, people often ask if i paint on my beads too... i think "perceived value" is a BIG part of it. name branding is too. there are artists out there who have a great brand going and so their work has a higher PV even though they are doing similar work to others. they've figured out the unknown quantity that makes for a successful business. it's the hardest part of selling i think.... and it's true that sometimes people will pay for things that took me little time and effort to make, but because it appeals to their personal sense of style, it's worth it. melanie

Here is all you need to know about pricing your jewelry: http://www.jewelry-making-resource.com/jewelry_pricing.html

I have done it this way for year and it works for me and my costumers.

Hope this helps.

 For me - I compare what a similar piece from another competitor...I try to stay a bit below their price...but I also incorporate obviously the cost of the materials and then the time it takes to make each individual piece.