I’m a jewellery designer, but my husband and I are also setting up
an internet-based jewellery retail site. We’ve selected some
wholesalers to buy from, but I’m not sure what the best pricing
structure is to use?
When making my own jewellery, I work out the cost price and then add
on my time charged at an hourly rate - can anybody suggest a better
way of pricing jewellery bought from a wholesaler?
Thanks
Hi:
When making my own jewellery, I work out the cost price and then add on my time charged at an hourly rate - can anybody suggest a better way of pricing jewellery bought from a wholesaler?
I’m not an expert, but you may be leaving out the retail mark-up
from your pricing structure. For a while, I was part-owner in a bead
store and the way I learned to price my jewelry is this: Charge for
my labor and add on twice the cost of my materials. From your post,
it seems you are only charging for your labor, thus underpricing your
work. When buying beads (or anything else) from a wholesaler, I
believe it is normal practice to double or triple (depending on the
demand) the cost of material to get the retail price. Don’t forget to
add in the costs of obtaining the material also (ie. shipping charges
or, in my case, train fare to go and pick up the stuff). Your final
price, however, should not be too far out of line with what other
area retailers are charging. I hope this helps,
Kim Starbard
Cove Beads
I insist my retail accounts keep at least a 2 key markup. Most keep
between 2.2 to 3. If you are selling your goods at a wholesale price,
via a retail website, you are then going to undercut anyone selling
your product retail, which in my opinion would be bad business.
Granted some things get a smaller mark up, i.e. large stones. I would
also suspect the wholesalers you are going to buy from would have a
suggested retail they would like you to stay close to, for the same
reasons mentioned earlier. If you really want, contact me off site
and I could offer some possible pricing guides for your own product,
because if you are adding just labor to cost of goods for your own
product, I suspect you are undercharging for your own goods on a
wholesale level.
Eric
Eric@studio311.com
I insist my retail accounts keep at least a 2 key markup. Most keep
between 2.2 to 3. If you are selling your goods at a wholesale price,
via a retail website, you are then going to undercut anyone selling
your product retail, which in my opinion would be bad business.
Granted some things get a smaller mark up, i.e. large stones. I would
also suspect the wholesalers you are going to buy from would have a
suggested retail they would like you to stay close to, for the same
reasons mentioned earlier. If you really want, contact me off site
and I could offer some possible pricing guides for your own product,
because if you are adding just labor to cost of goods for your own
product, I suspect you are undercharging for your own goods on a
wholesale level.
Eric
Eric@studio311.com
Typically jewelry purchased from a wholesale supplier is keystoned.
That is - the retail price is double or triple what you paid - based
on price point. Often lower price points are triple key.
The best pricing I ever got was from Thomas Manns’
course - Design for Survival. It works. It’s what I use for pricing.
Judy Hoch
Every step in the pipeline to the customer should double the price of
an item, in some cases triple.
Jerry
What Would be the best way to figure price when you you craft the
item yourself. Would you double/tripple the cost of all your
supplies used? Then add a decient hourly rate for time spent? I am a
novice and currently still doing this as a free time endevor. I do
not want to undercut professional jewelers work, However I do
understand my work is not of the same quality/ worth as professional
work “at least not yet”
My main goal for selling my current work is not to make a large
profit. My main focus at the moment is to recover monies spent so
that i can fund other tasks and to continue my learning.
Jerry Smith
jerry_smith@anvilsandinkstudios.com
Dear Judy,
I have just read your posting and would love some more information
about Thomas Mann’s course ‘Design for Survival’ that you write
about. Is this a regular course? Open to anyone? Did he publish a
book?
Looking forward to hearing more.
Regards,
Sarah
Botswana
Ndoro Silver
@Designconsultancy
In response to the questions generated by the comment I made on
Thomas Mann’s Design for Survival workshop, I pulled this information
off of his website www.thomasmann.com . I re-emphasize how very useful
this was to me. If you can take this workshop - do it!
Tom offers these workshops in a variety of configurations, alone or
grouped as a series and also with the Design for Survival workshop.
For pricing and scheduling on sponsoring a workshop,
contact Helen Redmann at 800.875.2113. To check out if one is being
offered in your area go to the Exhibition Schedule.
Judy Hoch
Hi,
I have two questions about pricing philosophy:
For ready items: are materials calculated from their actual cost
or the current market value?
How is price calculated for pieces not yet made? For example,
what if somebody orders 100 copies of a certain item. The order
needs to be filled within two months. So - how can one project
volatile costs in the ever-changing market - especially concerning
precious metals? It seems that one would need to be a prophet to
make a profit…
Thanx very much,
D
Last week, I had the honour of speaking to an award winning
designer…(no names permitted). She asked me a favour in helping her
to establish a ruling for pricing her famous jewellery. We talked for
almost an hour & this is what we decided & I want to pass this unto
everyone here.
Do not feel that your fine jewellery is too expensive, charge as much
as you can… (within reason). Introduce yourself to some new pricing
labels; such as “Consulting Fees”.
Lets say over a weekend you find yourself doing some mental solving
in creating something further along your great design. I do this
usually at 4:00 A. M. the ‘price-clock is now ticking’ you resolve a
major problem during these early hours. done! I peg this fee at 18% on
top of the mfg’ing costs.
Another good label is the ‘Cost-Overun’ what is this? Lets say
your tools need overhauling. Or your supplier raised their prices
after you do the ‘original costing’ & they include a state /province
tax that they didn’t tell you. you need a “paper-trail”, another
hidden fee. For this I increase the costs another 36%…just to be
on the safe-side.
With this amount you decide to select a better quality of stones or
gems, so why should you suffer this & reduce your profit margin? With
this label, your courier service ‘hits’ you with a higher than normal
shipping fee for something very expensive. the 36% allows you to
cover these points. My appraiser will take about one week to appraise
my project, it is that difficult to estimate. Her costing fee will be
much higher than ‘normal’, another ‘cost-overrun’ for me. this is
where the money goes, silently? Or the gold caster decides he must
charge more for the intricate wax-preparation. oops! Another hidden
fee I didn’t program. I feel that the 36% covers many of these
last-minute fees. If you feel you should charge more, then do so! I
spoke to my accountant friend & we discussed my project. He said
you’re not charging enough for your own pocket.
Increase this again another 18%, but also allow the same salesman
commissions.
We must remember one thing, we are creating something never seen
before anywhere in the world. We agreed ‘we’ must make these projects
affordable to those who can afford to buy them. the ‘fantastic’ 1%!!!
If it’s too cheap they won’t buy it, plain & simple!..don’t get
stuck with the bargain attitude. More you charge, then they will buy
it! My ongoing & nearly finished project is no small potatoes, I
quess-estimate it will appraise for $1.3+ mill. And I’m not cutting
my costs one iota.
My selling fee is a mere $736,818.00 This will take only 218
carats of stones. Here is the clincher, the additional newer 18% I
just put on, will allow if the buying client if they wish a discount.
We now have a new label for the 18%, it’s called a “Wiggle Room”. I
still make my originalprofit & not loose a penny to make a sale. My
salesman will make his $$ and everyone is happy! If you, the reader on
Orchid, think that this is a wrong attitude, remember that these are
just my observations! BTW, when I get an order, all of my deliveries
will be made by “BRINKS”.
Nice to see a ‘little’ shipment being made by 2 ‘armed’ security
courier-guards knocking at their door. That alone is part of my
36%…Get my drift?..Have fun creating those designs. Gerry Lewy
Dear Gerry we all have our ultimate dream creation. I am so glad to
see someone not afraid to reach for the stars. Keep us posted on
your progress. blessings pat
In Alaska where there is less than 3 feet of snow. At least it is
too cold to rain. It was -15 yesterday.
Does anyone else see the irony of telling us that every item needs
armed security while giving out the exact values on a public forum
where an IP address could possibly be traced?
I love Gerry for sharing us the impressive accomplishments as I am
in awe atwhat you create, but think it’s the opposite of security.
Rick Powell
Does anyone else see the irony of telling us that every item needs armed security while giving out the exact values on a public forum where an IP address could possibly be traced?
Umm Rick,
Since every email is moderated by T and H, the only IP address you
will have is Bangkok and possible where Orchid’s server resides, not
the posters address.
Kay
PS I also see the irony of not understanding the functioning of a
mailing list…
yes ironic and also his big calculations end up being just times
manufacturing cost by 5400% so from what I have see which is 500%
markup he indeed is not putting enough on his items
Teri
Rick
If I’m worried over my IP address I might as well just get into a
cave somewhere, & hide! What I’m trying to say is that if a delivery
is made using the regular normal companies …‘things’ can & might
happen.
So why do jewellery trade shows have “Brinks” & “Wells-Fargo” come
right into the show display areas? Security, is their answer! The
image of an armed guard delivering a parcel is not uncommon. It
shows the receiver that his purchase has been well taken care of.
If a parcel is worth umpteen hundreds of thousands of dollars,
‘safety & security’ are paramount. What other people think, is not of
my concern. I just want to protect the valuables.
Cost? you just build this into your expenses!
If it’s lost, it’ll cost you more. Which is better?
Gerry Lewy
I never said IP’s are displayed directly on this forum. Forgive me
for not realizing that it is impossible for someone to gain access
to the ganoksin domain and see the original messages that people
send before they are posted on this forum. Please tell me more about
their impenetrable data fortress. I was originally concerned for
peoples safety so I don’t understand the snarky insult you posted
about not understanding how the internet works.
Rick Powell
Rick and others
Please tell me more about their impenetrable data fortress.
Ain’t no such thing. Everything can be hacked/cracked. Which is why
internal memos in the Russian secret service and probably others are
now retro, i. e. typed and sent with the office boy. That’s progress
for you.
Smart phones that have a GPS can have that GPS turned on even if the
phone is turned off. And the phone can be tracked.
The police use it in Australia. Big Brother is well and truly hear.
As Larry Ellison of Sun Microsystems said “Privacy, get over it.”
Richard