Elaine,
Off the top of my head I can think of three jewelers that I personally know who support themselves.
If you count the people you know on Orchid you know far more than 3
people who support themselves through jewelry.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
Hi Rachel,
is this the only way most jewelers are surviving and thriving? By having a partner with a 'real' job? I was hoping to be able to support myself and make a living as an independent jeweler, but I keep hearing the same thing from everyone. Tell me it ain't so!
No, it is not the “only” way. My wife is also my partner and
business manager. We both work at our jewelry business full time. She
had a “real” job years ago, but for most of the 26 years we have been
married we have paid for our own health insurance and saved for
retirement. On the side of personal finances, it has helped that we
live where property is cheap, so the purchase price of both my home
and my workshop is less than many people pay in a single years rent.
I have never bought a brand new car, but I have sent 3 kids to
college and have 3 more still in public school. I went right from art
school to a year and a half working for another craftsman. From him I
learned a lot about business and keeping my nose to the grindstone.
But I didn’t get very good wages, so there was nothing to loose when
I set out on my own. Since 1984 I have been self employed and have
never regretted it. It took about 8 years before we started to have
an OK income, but then it got a lot better. I think that you have to
expect it to work. When I hear from people who say they have to keep
their day job to support their business I wonder how they have time
to make the business viable. It seems like that shows a great lack of
faith in the business plan. I have often heard artists and craftsmen
who have relied on other jobs for a living say “I could never earn
enough from my art to do it full time” My answer is that you could if
you had to. If you are smart and talented you have as good a chance
as anyone else. But you will have to do some things very differently
that if you are in it for a living, rather than a hobby.
Stephen Walker
Here’s one more jeweler who is self supporting. My husband is also
an artist and we do combine incomes, but I have lived from proceeds
of my own work for close to 40 years, No paychecks in there. I know
many jewelers who support themselves.
Keep on keepin on. Marianne
I decided I was going to get out of the spraying business so I doubled my prices when ever anyone called, do you know what happened? My business doubled, I have a hard time getting into the fields now to cut hay with all the calls I am getting.
OH NO, MY CUSTOMERS WON’T PAY.
OH NO, IT WILL DRIVE MY CUSTOMERS AWAY TO OTHER PEOPLE.
OH NO, IT WILL NEVER WORK
OH NO, WHAT IF THEY WON’T PAY
OH NO
David S. Geller
JewelerProfit
www.JewelerProfit.com
If you count the people you know on Orchid you know far more than 3 people who support themselves through jewelry.
Absolutely.
I was thinking of people I know in real life. And I should have
specified that I meant people making a living selling artisan
jewelry. Excluding those in the jewelry industry.
Elaine
http://www.CreativeTextureTools.com ™
Hard to Find Tools for Metal Clay
In order to succeed we have to be willing to risk failure. Sometimes several times. But continuing to strive for our dreams is empowering.
Now there’s an entrepreneurial spirit if I ever saw one!
A word or two about failure. It can blindside you, or it can be your
own fault. If you’re smart about it you take great pains to ensure
that you get the right training, have a solid plan, the right
location and so on. Good, you’re halfway there. Now what about those
things you have NO CONTROL over? Are you going to just hope that bad
stuff doesn’t happen to you?
Well, you do have some power regarding things you can’t control. You
can plan for failure mitigation. When the market sours, or the town
tears up your street for a long period, or you misjudged public
reaction the overwhelming aspect of this is your income drops far
below your obligations. It then becomes a matter of time before an
ignominious end.
So…when you’re setting up think of those things that can kill you.
Is there some other way you could be arranging things NOW that could
save your skin later? How about asking your landlord for an escape
clause? When negotiating all things are open at the start. If one
landlord won’t have it then look for another.
Look at the overall cost of your proposed lease. What seems like a
(hopefully) manageable monthly cost of say, $4K becomes a long term
commitment of nearly a quarter million dollars assuming a five year
lease. You’d have to do nearly three million in that 5 year period to
justify that rent. Most landlords require a personal guarantee these
days. But not all. Do you want to be on the hook for a quarter mil?
Instead of a PG see if he will accept a letter of credit from your
bank(make sure it has a fixed term), or a larger security deposit. It
might be tough to come up with at a time when you are spending on
fitout but in the long term could be quite handy. Maybe you could
put the value of the larger deposit as collateral for the LOC and at
least collect interest on it. You’ll sleep better just knowing the
sword of Damocles is not hanging over your head.
Consider a low rent. Might not be the best spot in town but even the
best locations can have tenant failure. If you don’t have a public
following already, a lower monthly obligation may allow you the time
to develop one. With a high rent you have to get profitable rather
quickly. You don’t want a monthly Sysophus exercise.
Think about what will be your core business activity. If the market
sours can you survive on just that? Your niche? Will your niche still
be there when things get rocky?
Planning for success is a two pronged approach. Do the things that
get you money, and avoid the things that drain you of capital.
Sorry to have run off at the keyboard again.
I hope my coffee didn’t get cold.
I’m a little late getting into this one but here is my story. My wife
an I got into jewelry in 1992. For the first 3 years we both worked
full time jobs then came home at night and worked until 11:00 or so
in the shop and used all our vacation to go to shows. I remember the
nights getting back from a show at 5:00 in the morning, grabbing a
couple hours sleep and rushing to work.This was a total burnout but
it did acomplish a few things that made it possible to quit our jobs
in the 3rd year to do jewelry full tume. We were able to devote 100%
of what we made with the jewelry back into the shop that meant that
when we left our jobs we had a nice shop paid for, a fair inventory
of stones and silver and a few thousand stashed away to get us going.
Since you are by yourself it might take a little longer but it can be
done. My wife worked at the jewelry for another year and started a
horse business. Talk about a business that looses money now I support
my business and hers. I don’t get rich but I don’t have go to the
office every day and I know I could work a whole lot harder than I do
if my goal is to just make money.My only regret is that I didn’t do
this about 10 years earlier.
Good Luck you can do it.
Dave Owen
OH NO, WHAT IF THEY WON'T PAY OH NO
Well, David, I’m going to be pretty much forced to put this to the
test. I have a showin a couple of weeks-- my only one of the season.
Because of the increase in the cost of metals, I really have to
raise my prices, and I’m pretty nervous about it. Last night, I was
making a necklace style that has sold quite well at $225. It will
now have to be $320. Will it still sell?
Last year at this show, I sold 10 of a style that averaged about
$50-- my lowest-priced item, and a good gift choice. Will they still
be, at $70?
We’ll see!
If I wanted to get out of the business, like the crop sprayer in the
story, I’d do as he did and double my prices. But like most of us, I
have a lot to lose.
Noel
I think that the world is starved for good goldsmiths/metalsmiths. If
you feel like you’re good, and people you respect see your talent,
and you want to work hard, you can make it happen. If you’re a
newbie, get a job in a shop with talented smiths who will train you.
If you have put in time working and have hit a wall, make a change.
Find a new situation or start your own thing. If you start your own
thing, find your niche and work to exceed your clients expectations.
Always be willing to change, look forward to change. Pay attention to
your clients needs and feelings. Ask advice of people you see as
successful, listen to what they say. The recipe for success is all
around you, all you need to do is work each day to improve things
just a little bit.
Mark
A friend of mine and I have been discussing the differences in
retail and wholesale recently. We have both been in the business for
quite some time, and come from the wholesale end of the industry. He
told me that he sees the main difference between the two is that
wholesale is price sensitive and retail is trust sensitive. I had
never heard it put quite so succinctly, but that really is what it
boils down to.
One of the wholesale things I used to do back in the 80’s was to set
CZ’s for a company that sold CZ jewelry. They were selling loose 1ct
CZs for $100. They sold a ton of them. I had a real hard time with
that. The little package they put them in cost as much as the CZ.
Then it was explained to me that no one would set a $15 CZ in a $250
mounting, but they would if that stone cost them $100. I believe the
term used was “perceived value”.
Think about it. If you go into what looks a nice restaurant and the
price of their finest steak is $6.50 and their best bottle of wine is
priced at $4.00, what would you expect? Bet you wouldn’t count on a
fine feast with waiters in black tie anticpating your every need. I
know I wouldn’t. One of the most successful restaurants in the
Raleigh - Durham area is The Angus Barn. It is somewhat high-priced
with a meal for two easily costing over $100 (you can get to $200
without any real effort). Yet, even with these phenomenal prices, the
place is packed almost all the time. Why? They do a good steak, their
service is outstanding and the “perceived value” is very high. People
like to spoil themselves and those they love. Spending money on what
they perceive to be fine quality is one of the ways they do it.
I still subconciously swallow hard before telling someone that it
will be $39 to size their plain gold ring down a half size, but I’ve
found that the people that say “HOW MUCH???” to $39 would say the
same thing if I told them $12. It has less to do with what you say
than with how you say it. If you say “Geez! Are you sitting down? I’m
sorry, but this is a hard job and with the price of gold going up
like it has it’s gonna be $150, is that OK?” the customer will
respond just the way you set them up to respond and probably leave.
On the other hand, if you look in your Blue Book and confidently say
" This should be a fairly easy thing to do, but it does have some
potential difficulties. It’ll be $150, and it’ll be done right." they
will also respond the way you set them up to respond, and you’ll
likely get the job and probably a long term customer, not to mention
a lot more money for your time and talent. Add zeros to the prices,
the process and mindset remain the same. The only catch is that you
must provide what the customer expects and maybe just a lttle bit
more. There’s a little jewelry company called “Tiffany” that has
quite effectively used this mindset to their advantage.
In retail jewelry, we sell the sizzle as much as the steak, probably
even more so. Your attitude towards your pricing will have far more
bearing on your eventual success or lack thereof than the actual
prices you charge. No matter how much or little you charge, there is
always someone that will do it for less. You must convince your
customers that your work and jewelry are worth more, but first you
must convince yourself. Don’t be afraid to let them walk; their loss
is greater than yours. This has been a hard lesson for me to learn in
making the transition from price oriented wholesale to trust
sensitive retail. If there is one piece of advice I could give
someone just starting retail, I would say, do the very best work you
can, charge for your work and be confident. Your time and talent are
worth it. You might actually be surprised at how much more
credibility you will have by pricing high and being confident about
it. I know I am. High prices without confidence or vice versa are
both a losing propostion, but the two together is a winning
combination and the only way to break into the big-time, I’m finding
out.
Noel, don’t say a word about the higher prices. I’ll bet you a cup
of Joe nobody will even notice. If someone does notice, whatever you
do, don’t apologize – Justify! I mean it’s not like you’re trying to
sell a $15 CZ for a hundred bucks or something.
Dave
OH NO, WHAT IF THEY WON'T PAY OH NO
I did a Christmas Craft Show today and a gentleman was looking at my
Cripple Creek Turquoise pieces. I have a couple pieces that have the
deepest blue Cripple Creek I have seen in a long time. The stuff came
out of the ground about two months ago. My friend David Graham of Bad
Boys Mining Co. showed up at my door with a 5-gallon bucket of the
raw ore I ground a bit off to see the color. I immediately got a
pound of it and now whished I had gotten more.
Anyway the guy was asking why my turqouise pieces were so high
priced. $185 for a medium sized pendant and $295 for a large chunky
piece of the gemmy blue Cripple Creek. I told him he should go down
to Santa Fe and see what natural gem quality tuorqouise is going for.
I’ll be reviewing prices after my last show of the year and I’m
thinking of doubling the prices on those pieces.
Rick Copeland
Silversmith and Lapidary Artisan
Colorado Springs, Colorado
rockymountainwonders.com
Last night, I was making a necklace style that has sold quite well at $225. It will now have to be $320. Will it still sell?
So did your costs go up more that 30% in one year? Or are you making
more profit?
Hans Meevis
Last night, I was making a necklace style that has sold quite well
at $225. It will now have to be $320. Will it still sell?
So did your costs go up more that 30% in one year? Or are you making more profit?
The answer is a very good yes:
Its in a great price range
It sold for $225 for one BIG REASON: you said "Hmmm, I think I’ll
mark this up “x” times.
If you had used 2x times it might have sold at that price.
If gold and silver had gone up 3 years ago you would have sold it
at $320 BACK THEN.
I started in 1974. It would have sold then for $110. Surprised
you selling ANY NOW.
David Geller
www.JewelerProfit.com
Noel, don't say a word about the higher prices. I'll bet you a cup of Joe nobody will even notice. If someone does notice, whatever you do, don't apologize -- Justify! I mean it's not like you're trying to sell a $15 CZ for a hundred bucks or something.
Thanks for the pep talk, Dave. You provide an interesting
perspective. I am concerned, though, that it may be more difficult
in a show, where the sense of trust is not supported by a
bricks-and-mortar presence year round. On the other hand, I am
local, and it will be my fourth year at the show (One of a Kind in
Chicago).
Yesterday I printed out graphs of the price of silver and gold over
the last 5 years. It is plainly visible how much they have risen,
and that they have doubled in the last two years. Unfortunately, I
really can’t post them in my booth! I doubt that the average shopper
realizes that metals are at record prices. They only know they can
afford less.
Well, I must bite the bullet and raise prices. I really do want to,
I’m just scared. The show is very expensive, and gruelling to do,
and I really need to come out ahead…
I’ll let y’all know how it went after it’s over (Dec 6-9).
By the way, do you think I’m undercutting my multi-hundred-dollar
pieces by even having $50-$100 ones?
Noel
Last night, I was making a necklace style that has sold quite well
at $225. It will now have to be $320. Will it still sell?
So did your costs go up more that 30% in one year? Or are you making more profit?
Well, I miss-typed. It was priced at $275, not $225. The actual
increase is 14%, and the chain has gone up 13% since a year ago (I
just checked, since you asked). Plus, I have really been trying to
put all the advice from Orchid into practice-- doubling materials
and adding my hourly rate PLUS profit.
I keep reminding myself of the advice I got years ago (and have
quoted here before)-- if your toes don’t curl when you quote the
price, you’re not charging enough.
Noel
So did your costs go up more that 30% in one year? Or are you making more profit?
Well actually at $850/oz, something gold recently hit your metal
costs would be up 30% in the last year. But regardless of this, since
your investment costs go up, you should be trying to make more profit
on it because you will have invested more to begin with. People often
forget that it costs money to stock and hold materials, whether in
raw form or finished form and you should get reimbursed accordingly.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
I was thinking of people I know in real life.
This statement I find quite funny. I mean aren't we in real life here??? Orchid isn't an online game with avatars. Last time I looked we were all real!!
I was writing out the common internet abv. IRL = In Real Life. I
wrote it out in case not everyone here knew it.
And I should have specified that I meant people making a livingselling artisan jewelry. Excluding those in the jewelry industry.
I'm confused by. Everyone who makes and sells jewelry is part of the jewelry industry (whether they like it or not).
Yes, you know that, and I know that, but not everyone
self-identifies as being a part of the industry.
Also, people expect Jewelers in Jewelry Stores to be successful.
People think of people who do craft fairs for a living as artists.
And most people think artist = unsuccessful.
I thought Rachel might be asking about the viability of making a
living on the crafts show circuit, or otherwise, outside of the
industry, so I answered in that vein.
Elaine
http://www.CreativeTextureTools.com ™
Hard to Find Tools for Metal Clay
But it's also unsettling that you seem to believe you can't be part of both worlds.
Sorry to have unsettled you.
One can certainly be a part of both worlds, but they are in many
ways, different worlds that overlap but are not the same.
As an industry person I can be a part of GIA Alumni and Assoc., I
can join WJA.
As an individual metalsmith/artist type, I can join SNAG. My friends
from WJA will not be at the SNAG conference, for the most part.
I can attend a monthly WJA meeting, and my SNAG friends will not be
there.
As a person selling handcrafted jewelry, my participation in the
jewelry industry is invisible to my customer.
Elaine
http://www.CreativeTextureTools.com ™
Hard to Find Tools for Metal Clay
Rick this is in response to your turquoise statement. I think there
are a couple of factors at play here first it is the relative
rareness of the turquoise and its quality compared to turquoise in
general from all places. A good stone is a good stone no matter where
it’s from turquoise or not so in that regards by all means get what
you feel it is worth. I sold a pendant with a really nice piece of
Chinese turquoise this summer for twice what I would normally have
sold it for no problem.
The other factor at play I think is a little different it has do do
with location. I lived in Bisbee for several years and found
something rather interesting. Bisbee turquoise is worth the most in
Bisbee. Granted top grade is worth a lot anywhere as above mentioned
but the more common stuff sold for a lot more in Bisbee than I feel
it was really worth. I was in Crested Butte this summer and came
across Lapis from the local deposit.While some of it was of good
quality when compared to Afghani Lapis a lot of the quality was
substandard when compared to Lapis in general but… It was mined
there and the gentleman selling it was doing quite well and getting
much more for it than he could have probably gotten else where
because it is a local commodity. It is a good marketing strategy in
certain situations.
Dave Owen
I was writing out the common internet abv. IRL = In Real Life. I wrote it out in case not everyone here knew it.
Actually Elaine, I’ve frequently wondered what IRL stands for, so
thanks.
Helen
UK