Michael Corneau said it well: "As a goldsmith, designer, manager and
former owner please heed my words. Talented goldsmiths are hard to
find and have value. "
My mentor of over 25 years AGO, wouldn’t light his torch for less
than $5.00 Notice that was 25 YEARS ago. Inflation since then
probably means he would be charging at least three times that now.
I think Geller’s book would be a wise investment for you.
Judy in Kansas
Hear hear Richard! Many years ago, I took in a black star sapphire
and diamond 14K ring to repair a simple prong on one of the diamonds.
Well…I had no more hit it with the torch and the whole thing (well
most of it anyway) simply collapsed! It took me hours to completely
take it apart, clean it all up and rebuild it! Learned later that it
had been purchased from ‘one of those TV shows’. I have no idea what
they had put it together with…probably superglue!! (grin)
Cheers from Don in SOFL.
Orchid,
I’ll just put down a few thoughts about “Gellers blue book”. I began
using David’s book back in '99. I was convinced to use it from a
mutual acquaintance David & I know. What I remember thinking was “ARE
YOU NUTS??!!” My friend convinced me to at least try it. So I shelled
out $150 for the “kit”. Within 3 days I made back 10 times what I
paid for the book. Oh…I’m just a one man trade shop here in Great
Falls, MT (Pop. 60,000) I began working with 3 other retailers who
reluctantly implemented the pricing. Even though I’m a trade shop, I
work out of a retail store & the owners always involve me in their
sales/custom work.
6 months later, ALL the stores reported to me that they had
experienced a minimum of 60% growth in their repair dept. I began
doing “in store clinics” on how to maximize dollars. It worked. One
store I began working with went from making $70,000 pr/yr (includes
repairs & new mdse) to making $570,000 in a 1 year period. This is a
small town w/ a population of about 9,000. In a 3 year period I was
directly responsible for them making $1.3 million dollars! Are you
still doubtful about David’s book?
He IS ABSOLUTELY correct when he says “You don’t receive because you
did not ask”. OK…I really twisted it there. But “asking” is a huge
deal. I have to convince the retailer that it really is that simple.
You can’t interject your “feelings” when it comes to pricing. Trust
is paramount to getting your price. I remember one individual (here
on Orchid I believe) that raised his price by $1 pr/week. After a
couple of weeks he found that NOBODY was complaining. So he just set
the pricing according to David’s book. NO problems.
Since 1999, I have personally sold about 20 of David’s "blue books"
to potential clients. Not everyone “jumped on board”. But the ones
who did are very grateful they did. Your biggest enemy w/ regards to
price changes is YOU! If you’ve listened to the CD’s David makes
available, or attended any of his seminars, you WILL learn how to
overcome objections with ease. And no…I’m not a paid endorser of
David’s books. Just someone with an 8 year track record.
Walt Teats
American Goldworks (Uber 1 man trade shop)
Great Falls, MT
Hi Claudia,
Alastairs advice is right on.
I would add that it’s all about relationships. Initially you will be
just another goldsmith. But if your work is consistently exceeding
expectations, on time and done without complaint, the jewelers will
begin to rely on you. Over time price becomes less of an issue, your
clients give you work because they can count on your ethics and they
know you will get it done. If you make them look good you will stay
busy.
As briefly as I can say it, to get your minimum wholesale price you
need to time your work, calculate your hourly rate, add in your
materials (typically marked up 50%), and add in your hourly
overhead. That will give you your absolute minimum wholesale! So if
that’s your floor, your ceiling is whatever reasonable people are
willing to pay.
Pricing is one of the hard things about running a business, there is
nothing out there that says if you do this, then charge this,
(Geller’s book is really for retail stores, not wholesale shops, and
copying other shops price lists is usually just repeating their
mistakes).
Every relationship is different. You may be a great goldsmith with
terrible clients who undervalue your work. Your goal should be to
seek out and build, over time, positive win-win relationships with
jewelers who care about your work and about you as a person
both…not just how much they pay.
Oh, and only do work for jewelers who pay you on time.
Mark
Geller's book is really for retail stores, not wholesale shops, and copying other shops price lists is usually just repeating their mistakes
Many trade shops sue my book and charge the stores ABOUT 40% of
retail.
David Geller
www.JewelerProfit.com
Gellers book is the closest thing we in the jewelry industry have to
a automotive repair pricing guide which calculates the average time a
job should take, materials, markup etc… If you are faster than the
average you make more money.It is for a retail business but you can
easily figure what you should be paid as a wholesale repair person. I
don, t always agree with the prices and frequently charge more but I
am in a resort area and my overhead is more. If your overhead is less
you could charge less, however if you intend to make a business out
of your skills some day you will have more overhead, tools, staff,
rent etc.