Pricing has always been a problem for me. However, figuring all the
costs involved in making it is not the problem, it is figuring out
the perception of its value that the customer brings to it, and
adding that to its selling price.
I learned this some years ago when I had a wide, hinged sterling
bracelet, overlaid with 24 K gold Keum boo, and set with 5 lovely
stones. I priced it at $250 (that was when gold and silver were way
way downin price. I was just starting out selling my things and
participating in a show, when a good friend, who was also in the
showcame up to me and said “That price is ridiculous.” “Well,” I
replied, being new at the art of selling, “how much should I reduce
it.” “Reduce it” she snorted, “No, you need to raise it” She then
askedme for another tag, tore off the one I had on it, and doubled
the price.“It will never sell at that price” I said, to which she
replied, “Trust me.”
How glad I am that I did. About 20 minutes later a customer came to
my booth, and bought the bracelet without blinking an eye at the
price. It is a perfect demonstration of what Jo means when she talks
about perceived value.
Of course that was years ago, and with the downturn in the market
for luxury items at least in some of the shows in which I am
currently participating, I find myself adding more inexpensive items
to appeal the customer who is looking for something less that $200.