Hi,
Well, I know this has been gone over a million times, but I’m asking
anyway. I am doing a custom wedding set for some good clients. I
normally work in silver with the exception of some 18k production
pieces.
Here is how I normally charge:
Price of materials x 2
Hourly rate to make and design the piece
What I want to know is, is it OK to double the materials cost of
gold? That makes the rings really really pricey. Am I selling myself
short if I do price of materials x 1.5 plus the cost of labor?
Thanks!
Brooke
www.bellebrooke.net
Am I selling myself short if I do price of materials x 1.5 plus the
cost of labor?
Yes, very much so (assuming you’re talking about retail).
Daniel R. Spirer, G.G.
Hi Brooke,
How about the (price of materials + your labor costs) x your markup.
If you were to make jewelry for the trade (ie: to sell to a store)
you would have your cost and then you’d ad to that a wholesale markup
right? The store would then mark up your wholesale price to whatever
they use.
You should try to do the same.
Interestingly, when I order or custom make items I tend to stay at or
little above 2x markup. But for merchandise I put in my showcases I
shoot for 2.5. Psychological problem I need to work on I guess.
Mark
Brooke- Absolutely! At least double your gold costs. We are
wholesale only and we keystone our metal and stone costs to our
wholesale accounts, who then keystone their costs to the consumer.
Don’t short change yourself. We also charge $75.00 per hour for
labor. Sure we can be flexible on occasion, however… My husband has
a saying that he learned from his Uncle Bob who started in the trade
about 50 years ago.
"If you can’t charge your family and friends… well then who CAN
you charge?
Jo
www.timothywgreen.com
Materials (plus profit/markup) plus labor… in the real world
this certainly doesn’t include enough to be a viable pricing formula
or business strategy.
Anyone’s actual product cost includes a lot more than this unless
they live and work rent free, use no supplies or power, and purchase
no tools or equipment.
What about studio overhead? Working space, utilities, rent/mortgage,
etc? Other expenses incurred to make or sell the product? Business
profit?
There is more to be considered than only materials and labor.
Michael David Sturlin
www.goldcrochet.com
www.michaeldavidsturlin.com
Interestingly, when I order or custom make items I tend to stay at
or little above 2x markup. But for merchandise I put in my
showcases I shoot for 2.5.
To my mind, this is the exact opposite of what you should do. Once
work is made, it is worth less because the work is already done and
needs to be paid for. Future (custom) work is work and materials in
the future. It is the “call girl principle”-- a service is worth more
before it is performed than after!
Noel
Yes, Michael said it really well.
I price my pieces: [cost of silver or gold (what it cost me to buy,
not the spot price, and I include s/h) + findings + stones] x 3, plus
[hours of labor x my rate]. It’s up to the gallery to price per their
needs, overhead.
For a custom piece, there should be a premium price! You are making
it to fit the buyer’s need, and the buyer should pay for that.
Regarding the price of materials, you must not only make up the
price you paid, you must also replace that item, and pay yourself for
your investment, risks taken, any waste involved, etc.
Remember, you MUST pay yourself (time, energy), replace your stock,
account for risk, make it possible to invest in better materials,
bring peace of mind, improve your skills. Otherwise, it’s just a
vanity game, and you are throwing money at everyone but you.
May you have much joy in what you do, and profit from your labor &
risk,
Kelley