Pricing pieces of wearable art!
One thing I will do, is to allow for ‘cost over-runs’. These will
happen 200% of the time.
My diamonds are priced in US funds, then I gotta make a calculation
into Canadian dollars. I put on 2% extra as the posted currency will
change during the course of the week or even a day. If I miss any
minor cost, I allow for this at 18% costing in ‘cost over-run’.
My time at the bench, or dreaming up another design & figuring out
how to assemble it at 4:00 a. m. is another simple process,
‘Consulting Fee’…I use at least 36% for this label. Some designs
might take up to a year to get into a real-time product. I allow a
high-commission for my salesperson @18%. Why so high? I use this as
an ‘incentive’ to sell my ultra high-end 18kt goods. But my many
salespeople (of any gender) should have some casino contacts prior,
no cold-knocking on any door.
The last phase of calculating is “10%,wiggle-room”. “Wiggle Room” is
another name for charging high & allowing to give that
discriminating buyer a benefit of asking for a discount. No one gets
hurt in this phase, not me, or my salesperson.
So now you all have my equations on how I price my ultra high
It isn’t rocket-science, but ‘we’ have to take into consideration
invisible unforeseen costs that will occur.
An example of ‘cost overruns’ is my Cad fellow might hit me with a
high cad-fee. Or my caster will charge me extra for his time in
preparations of special wax spruing or one flask casting fee. He also
charges me 13% tax.
If I don’t allow for these hidden fees, I won’t be making a decent
drawing of funds!!! Some of my patterns need specialized setting
tools. woops! How about the costs of making a $36.00 colour brochure?
I’m making 25 of them. The ‘over-run’ list just keep on adding up.
You MUST ALLOW at least 36% to keep your mind at rest in case of an
additional last-minute fee. Don’t be timid in using my method. It
just might help when you are subjected to those unforeseen costs.
They will 100% happen… Gerry Lewy.