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
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
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