How do I price my jewelry?
One of the greatest thrills of all time is when someone pays real money for something you have designed and created. The first question pops up: Can I make some serious money making jewelry? Why not? With smart planning, strategizing and marketing, you should even be able to make a living from your creative impulses. I have so many customers come to me and ask “How do I price my jewelry”.
Some advice:
First, buy your "parts" economically.
Pursue a strategy of "DEPTH", not "BREADTH". Limit your inventory at first. Buy a "few" parts in large quantities. Limit your colors, the types of findings and metal beads you use, stringing materials, and the like. [After a few years, you'll be able to broaden your inventory, as older customers are ready for new items, and you have enough of a customer base that you can buy more things in bulk.] The more expensive your parts, the harder it will be to mark up your finished product in order to make a profit. If you try to design your business so that you can meet every contingency -- that is, respond to every request or market niche -- you'll end up buying a lot of different "parts" to have breadth, rather than depth, of inventory. This will cost you. Each part will have to be bought in smaller quantities, and thus will be more expensive.
If, instead, you concentrate on replicating a limited number of designs, (perhaps varying certain design-features rather than coming up with completely new and different designs), you'll be able to buy parts in larger quantities, making them less expensive. [As your business develops and matures, your goals will change, and you will seek greater
breadth -- but this is a subject for another article.]
Second, know your market.
* Who are your customers? What will your customers be willing to pay, say, for a pair of earrings?
* Where are your customers located? How will they get to you, or you to them?
* What will it cost you to link up to your target market? -travel, displays, packaging, timing
You don't want to make a $100.00 beaded watch band if your most likely target market customer will only be willing to pay $20.00 for it.
Third, know your competition.
* Check out similar merchandise in stores, flea markets, on-line and other places that sell jewelry like yours, and that target your customers like the ones you want to target. How have they priced similar merchandise?
Fourth, mark up and price your products so that you will make a sufficient profit.
Sufficiency means that (a) you can buy replacement parts, (b) you can pay your overhead costs, (c) you can pay yourself, and (d) you can reinvest 5-10% of your earnings back into your business, such as expanding your inventory, or buying display fixtures and the like. Remember, it's always easier to lower a price, than raise a price. Customers smile at lower prices, but frown on raised prices.
Some advice:
First, buy your "parts" economically.
Pursue a strategy of "DEPTH", not "BREADTH". Limit your inventory at first. Buy a "few" parts in large quantities. Limit your colors, the types of findings and metal beads you use, stringing materials, and the like. [After a few years, you'll be able to broaden your inventory, as older customers are ready for new items, and you have enough of a customer base that you can buy more things in bulk.] The more expensive your parts, the harder it will be to mark up your finished product in order to make a profit. If you try to design your business so that you can meet every contingency -- that is, respond to every request or market niche -- you'll end up buying a lot of different "parts" to have breadth, rather than depth, of inventory. This will cost you. Each part will have to be bought in smaller quantities, and thus will be more expensive.
If, instead, you concentrate on replicating a limited number of designs, (perhaps varying certain design-features rather than coming up with completely new and different designs), you'll be able to buy parts in larger quantities, making them less expensive. [As your business develops and matures, your goals will change, and you will seek greater
breadth -- but this is a subject for another article.]
Second, know your market.
* Who are your customers? What will your customers be willing to pay, say, for a pair of earrings?
* Where are your customers located? How will they get to you, or you to them?
* What will it cost you to link up to your target market? -travel, displays, packaging, timing
You don't want to make a $100.00 beaded watch band if your most likely target market customer will only be willing to pay $20.00 for it.
Third, know your competition.
* Check out similar merchandise in stores, flea markets, on-line and other places that sell jewelry like yours, and that target your customers like the ones you want to target. How have they priced similar merchandise?
Fourth, mark up and price your products so that you will make a sufficient profit.
Sufficiency means that (a) you can buy replacement parts, (b) you can pay your overhead costs, (c) you can pay yourself, and (d) you can reinvest 5-10% of your earnings back into your business, such as expanding your inventory, or buying display fixtures and the like. Remember, it's always easier to lower a price, than raise a price. Customers smile at lower prices, but frown on raised prices.