A neighboring jeweler at a show told me his response to this dilema
Customer: How much is this piece
Jeweler: $150
Customer: Can you go any lower?
Jeweler bends his knees and in crouching position says: $150
My neighbor’s response may not have been the most “gracious” one,
but all the artists who heard his story got a great laugh and could
identify with the frustration which prompted that response.
Hi Folks- I have been following this thread and decided to share my
"canned" answers:
I do not charge sales tax - I only collect it.
I don’t doubt that store X can do the work cheaper- they know what
their work is worth.
When customers as what my best price is, I quote a price about 50%
higher. Shuts them up real quick…
When asked to discount an item, I tell them that eating is a habit
I don’t want to quit.
I generally reply in a firm voice, while smiling and offering no
further explanation. This seems to work well for me.
Ted Finesman
Teddybear’s Jewelry Patch
@Ted_Finesman
I have a wonderful answer for anyone who comes to my booth or
gallery and ask “Is this the best you can do with pricing?” I
always look like I am giving it a little thought and then say “Of
course, I can do better. Would a 15% increase make it more
appealing?” They laugh. I laugh. And usually the situation is
totally defussed. If they continue, I explain the processes, the
materials, that the work is handmade by artists and their elves.
One great store in Santa Fe has a child’s wand that they keep near
their cash register. When asked for repairs that are impossible or
to lower prices, they pull out the wand, wave it around a little,
then say “I guess it didn’t work this time.” I need to get a wand.
Good luck…Marlene Richey
William Richey Designs
15 Wharf Street . Portland . ME 04101
On the sales tax issue, it used to be common practice in Texas for
the state revenue dept. to check Art Shows, Craft Shows and Flea
Markets to see if the vendors are turning in sales tax receipts,
several large markets used to have agents checking when you were
renting your spaces. The state really didn’t care whether you
collected the tax or not, just as long as you paid sales tax on your
gross retail receipts.
One thing that I have long noticed, the ones that push the hardest
for you to give them a discount on their purchases are the ones with
the fattest wallets. I usually explain that my prices are based on
my time as a skilled craftsman, the cost of materials and the cost
of fixed expenses.
The reality of this is that many people have had the image of the
starving artist that will settle for scraps.
I know that many of the sellers in the same shows raise their prices
20 or 30 % just to accommodate this, the PRECIEVED discount has
often swayed sales their way.
The unfortunate reality is that many times I have made the item for
the other seller, and am offering it at the same retail price they
pay after the discount, their satisfaction is resultant of the THEY
GOT A DEAL.
After a two-year hiatus I am going to do a few shows this fall,
where I hope I don’t get approached for any wholesale accounts, just
retail sales I think this thread has been a great help to me in
establishing a more polite way of saying NO to the Wal-Mart
syndrome.
Sadly, I must note that the practice of getting it cheaper has been
ingrained into everything we wish to buy, from large Department
stores to grocery chains to auto dealers.
Most of the time the discount or savings is only the result of the
product or item is over priced to begin with.
Kenneth Ferrell
I tell people that we don’t “charge” sales tax - we merely collect
it as a requirement of the state government, who requires that the
tax be paid no matter what and no matter who pays it. Occasionally
for certain purchases/buyers we will offer a discount of “no sales
tax” - in effect if we pay the tax this amounts to less than a ten
percent discount, and for some reason it seems to make a material
difference to buyers.
~kara
Hello everyone. I had a woman at a show this Spring ask if I could
lower the price on a pair of earrings. They were only $55.
Unbelievably she said " I would really like to have them but I don’t
want to pay that much." I told her that they were some of my most
popular earrings and that they were the only pair I had left. They
sold so well I could hardly keep them in stock and I was seriously
considering raising their price. That was the absolute truth too.
She immediately bought them. After thinking about it.
I think that’s a good response to give anyone that wants you to
lower your price.
You caught me just in time, I was just going to RAISE the price on
that item… 
~God Bless you~
www.jewelrybypoppy.com
A pricing experience:
I had an interesting experience about ten years ago. I had an
industrial piece of equipment arrive, brand new, bolted to a pallet,
and I had absolutely no idea what it did or why. But there were 4
sets of opposing action hydraulic cylinders, some other mechanisms I
could not identify, and I was sure that the manufacturer was “Rube
Goldberg Industries”. So, I priced it at $175, had it sit for almost
2 years with no interest.
Then, a customer identified it as a molding machine for silicon
rubber gaskets. We raised the price to US $9,000, and within 3
business days had 3 customers fighting over the machine, the first
guy who actually fedexed us a certified check got the machine, beat
out customer #2 who also sent us a certified check but on 2 day
economy.
pricing can be an interesting tool.
mark Zirinsky, Denver
"private cutter buying rough and collections"
Hello Larry,
On the rare occasion when someone wants the piece without tax, I
tell them I have to make the govenor happy and leave it at that.
Judy in Kansas, where my rain gauge runneth over! Poor tomatoes
don’t know what to do.
Judy M. Willingham, R.S.
B.A.E. 237 Seaton Hall
Kansas State University
Manhatttan KS 66506
(785) 532-2936 FAX (785) 532-6944
Most of the time the discount or savings is only the result of the product or item is over priced to begin with.
That is sooooo true. At my last trade show, the vendor across the
aisle was offering 70% off. I mentioned this on the list previously
and was kindly educated that this is a very viable method of doing
business.
I beg to differ. Here’s why. In order to take 70% off an item that
was marked up 100%, the remaining price is only 60% of the cost.
That’s a great way to go broke. So, OK, you mark the item up 200%.
Then you are still only recouping 90% of the cost of the item. The
only way this formula works is if the mark-up is 300% or more. Then
you could recoup your cost plus 20% profit. Not too many small
businesses can survive with 20% profit, although it may be possible.
$1.00 * 2 = $2.00 * .30 = $.60 (loss)
$1.00 * 3 = $3.00 * .30 = $.90 (loss)
$1.00 * 4 = $4.00 * .30 = $1.20 (profit)
I know that jewelry may be marked up 300% or more, so maybe this
strategy would work for some. However, I don’t believe it’s really a
very good strategy when the competition’s prices (the ones that don’t
deeply discount) are as low as they are. People do, however go for
it, thinking that they are really going to be getting a bargain. You
know what they say about “one born every minute.”
Susan
Sun Country Gems
http://www.suncountrygems.com
I’ve told people that we must pay for the new Erlich baby. That
usually gets a laugh.
(For those who don’t know, the MD governor’s wife just had a baby
boy. This is the same woman who threatened to slap Brittany Spears
last year.)
For the people who protest "what you're going to charge me tax for that too??"
I’m sure i am very late on my response as I have been away on
vacation ! Just wondering, how many of you just roll the price of the
tax into the price ? I find it is easier not to have to make change
and just round up with the tax included.
Regards,
Tina
Tina -
Just wondering, how many of you just roll the price of the tax into the price ?
That’s not legal in many states; I’d check with your local tax
folks. Around here (upstate SC, USA), the tax percentage varies as
much as 2.5% if I go up a county or over one for a show, so that’s
not feasible for me even if it were legal. Plus, I don’t want that
extra amount to look like it’s part of my price. It might hinder a
sale.
Courtney
Courtney Graham Hipp
cgHipp Jewelry Designs
http://www.cghipp.com
Tina, That’s a little iffy. I think you’ll get into problems with
the state tax people if you try to do that without clearly stating
what part is tax and what isn’t.
Daniel R. Spirer, G.G.
Spirer Somes Jewelers
1794 Massachusetts Ave.
Cambridge, MA 02140
617-491-6000
@spirersomes
www.spirersomes.com
Hi Tina,
Just wondering, how many of you just roll the price of the tax into the price ?
I am about to do my first show. And for ease for the customer, we
are rolling the tax into the final price. However, if you intend to
do so then be careful how you extract the tax. A further complication
for us is that the organizer gets 30% sales net of tax. I developed a
spreadsheet to take care of it all.
David
That's a little iffy. I think you'll get into problems with the state tax people if you try to do that without clearly stating what part is tax and what isn't.
Perhaps it is a a state-by-state thing.
Here in Arizona, The practice is common, particularly at shows, and
is referred to as factored sales tax or privilege tax. An itemized
breakdown of what is and what isn’t tax is not required on the
receipt. Your state laws may vary. Check with your State Dept of
Revenue for clarification.
Various municipal government websites provide instructions on how
to calculate the factored tax. The calculation is as follows:
Total Price/ (Sales tax+1)= Adjusted sales price.
So, if you sold an item for $100, and your sales tax is 8.1%, you
would divide 100 by 1.081 to obtain your adjusted sales price,
$92.51. The $7.49 balance is owed to the State and City governments.
Lee Einer
Dos Manos Jewelry
http://www.dosmanosjewelry.com
Be careful with that. In some locations (Maryland being one of them)
it is illegal to roll the tax into the final price. You have to set
the tax separately.
I have no idea why, but that’s what the tax codes say.
Elizabeth Schechter
RFX Studios
I find it is easier not to have to make change and just round up with the tax included.
My attitude on this is: Yeah, it is much easier to include tax to
have a round number. But I believe people don’t take that into
account in evaluating a piece. That is, they look at your $80
earrings and mentally compare to other items they’ve bought/seen for
$80, even though tax is added to the other items. In my area, the
earrings would actually be about $73 (our tax rate is 8.75%), so
they may, in fact, be a “bargain” by comparison, but not be seen as
such.
To put it another way, if a customer decides to buy a piece, I’ve
never yet lost that sale because I add tax, so why give an extra
discount by not adding it?
For those of you who include it, it would be an “invisible” way to
raise your prices a little-- start adding on the sales tax.
Since I started taking credit cards, I have very few cash sales.
If I don’t have change, or don’t feel like messing with it, I round
it down. It still saves me money over paying the credit card fee,
and the customer may feel good about saving a few pennies.
HTH! Noel
Now as to rolling the cost of Sales Tax, in Illinois it’s a tax on
doing “Retail Ocupation Sales” and sellers are “Allowed” to pass on
the sales tax to the consumer, (or, of course pay it themselves). So
the knowledgeable Illinois consumer can try laying that on you. . .
So, you just have to be Strong of Heart, stick to your pricing with a
smile on your face a tremmer to your heart! For a Thirty dollar
piece offer them say, $30 each or 3 for $100.00 tax free (:<))) .
Have Fun!!
Or just ask for thier Retail Tax ##s!
Or re read this thread . . . ??
Ed
One of the things I love most about Orchid is the wide variety of
topics that touch on every aspect of the jewelry trade/hobby. For
those of you fortunate enough to sell in Texas (we "adopted"
Texas–I’m originally from Oregon–tend to be just a little bit
jingoistic) here is a cut-and-paste directly from the State
Comptroller’s website:
Am I required to separately state the sales tax amount to my
customers? Yes. You must separately state the sales tax amount on
your invoice or receipt unless you provide a written statement on the
invoice or receipt that the sales price includes sales tax. If you
use a written statement that sales tax is included in the sales
price, you have collected sales tax and must report the collected tax
by backing it out of the total amount received.
For example, you sell T-shirts. You are located in Austin and are
required to collect 8.25% tax on your sales. You charge a customer
$50 for a T-shirt and your invoice contained a written statement that
the price included sales tax. Your sales price for that T-shirt was
$46.19, and you collected $3.81 in tax.
Del Pearson of Designs of Eagle Creek in Beautiful South Texas where
Europe is just a few feet below street level along San Antonio’s
Riverwalk, or Paseo del rio.
I do have a question about the sales tax issue. I am in Texas too,
and at my shows I always include the tax and have simply a rounded
off number. My patrons are residents of retirement homes mostly. It
helps them, not to mention myself, in that the price they see is the
price they pay. I don’t have to fiddle with a change box, which is
just one less thing I have to worry about.
My question is about the invoice they receive. I normally write on
the bottom of the receipt, “Tax Included”. Is this enough? Or, do I
need to back the tax amount out on the receipt as well? I have a
spreadsheet at home where I record all the sales and it automatically
backs the tax out for me, which I then pay quarterly.
Thanks for any input.
Betty