So I know there are many discussions in the archives about pricing
work, and I’ve read most of them, and read stuff in other places
about it. But it is SO confusing, and there are so many different
equations and tips, and most of them are totally different. I know
it’s a very variable thing, and depends on quite a lot. What I just
want from you guys, as professionals in the jewelry field, as I am
trying to break into the whole selling-my-work thing, is for you to
look at my online store and tell me what YOU think I should be
selling my work for.
I was recently told that I am majorly underselling myself, but I also
do want to make sales. I don’t really need more equations - I’ve seen
about a billion of those. Just honest opinions would be great. If I’m
going to up my prices, I want to do it now before I publicize myself
too much. Thanks!!
You have some cute things! And your prices are way too cheap. With
the amount of labor you are putting into each piece, your retail
prices should be at least double maybe even triple what you are
charging on etsy.
look at my online store and tell me what YOU think I should be
selling my work for. http://jmwjewelry.etsy.com I was recently told
that I am majorly underselling myself, but I also do want to make
sales.
Jen - looking at your etsy store, I think you’re priced just about
right for retail. The pieces are small and simple, yet visual and
attractive. I think you’re about right. Now…you are talking about
wholesale priciing for your work and that means that the prices on
your etsy are 2 to 3 times higher than your wholesale price. So, if
you are selling your bronze disks for $40, your wholesale price
should be $13.50 to $20, but not more than $20. Can you live with
that as an appropriate price for your item? If you can’t, then you
need to raise your retail prices to reflect what you would consider
a reasonable wholesale price. Although you don’t want formulas,
you’ll need to do this one. Take your wholesale price (the minimum
price that you are willing to accept for the piece) and multiply it
by 2, by 2.5 and by 3. The price of the three totals that you came up
with that you feel most comfortable with will be your retail price
and your items should be priced similarly (i.e., with the same
mark-up).
I make a line of pierced silver items that are similar in technique
but a totally different design theme and your prices are in line
with what mine retail for.
That being said, while as a merchant you likely can’t resist
comparing you prices with those of others, the fact is things cost
what they cost to make and you price should be driven by your costs
not someone else’s selling price. If you price to compete with
someone else’s selling price than you may wind up competing against
a sweat shop worker in a third world country, not a lifestyle I wish
to emulate.
You have to use some sort of method to come up with your price that
involves materials, labor, and overhead. For instance, in pricing my
pieces I took the silver disk I started with and weighed it to
determine the cost of metal that goes into the piece. The scarp that
I remove to give the silhouette is a bonus to me that goes back to my
scrap bucket. I then marked up the cost of the metal by a factor of
two to cover my replacement costs plus a little bit extra. In order
to get a labor cost I timed myself while making several copies of the
same or similar pieces. I then decided on a labor rate per hour that
I was willing to pay my employee (myself) that I could live off of.
As the boss (also me) I realized I needed to mark up the labor rate
an additional portion because I have to cover the time my employee is
eating lunch, talking to someone else, surfing orchid, or any thing
that is not making jewelry. This all resulted in a labor rate that I
used in the calculation. The final component, the overhead rate, I
find is the most difficult to arrive at. This is essentially the cost
of doing business such as rent, electricity, consumables replacement,
insurance etc. A lot of it depends upon your situation and location.
For instance, if you are married and have insurance through your
spouse, you might not need to calculate that in, but I would suggest
that you add in some cost for that just in case the situation
changes. That way you can easily funnel money to that without having
to worry about upping your prices right away. If after you do all of
this you fell that the pieces are not moving because they are over
priced, you need to reanalyze you manufacturing process or business
environment to look for cost cutting steps or ways to increase
efficiency, such as stacking more than one disk for piercing, in
order to cut labor costs on each piece. If at the end of all of this
the pieces are moving vary fast and you can barely keep you, that
means you might need to raise you prices by an additional percentage,
which is a big bonus. You will likely lose a few sails but it will
free up time for developing your next big line of jewelry.
Your prices look right on to me. Your marriage of metals work looks
great, and I wonder if you can squeeze the price up a bit higher,
but overall, it looks right on. I am far from any expert, however,
constantly debating the prices of my own work…