Pricing and Selling My Jewelry

by Chris
(SC)

Silver and Lace

Silver and Lace

I have looked at many of your articles and just want to say what a lovely compassionate person I think you are and want to thank you for all the lovely advise you have given to people.

I was in a job related accident in what will be three years in October this year on my regular job (I am a bit of a "tomboy") flagging traffic.

I received a severe injury to my thoracic spine and put my "100 mile an hour" body into a complete standstill for about 8 months. I have three bad discs now and had a spinal cord stimulator implanted last year.

I still suffer from chronic pain but I had to find another avenue to keep my 100 mile an hour brain occupied.

I used to paint but due to the injury, I can't hold my arms in that position. So a friend suggested trying the jewelry avenue.

I have been designing jewelry now for about a year but it has been a roller coaster ride. I have sold a few pieces but not a lot of luck.

I do have a person who is showing some of my jewelry in her shop but she seems to be kind of lackadaisical about it and I haven't sold anything as of yet.

I email her and don't get responses, call and don't get responses, and I am concerned about my pieces.

I don't know if I have priced them correctly either.

I have attached a piece I made hoping perhaps you could give me some idea of how to price things as I am on a fixed income now and could use all the money I can; and all the advise I can as well.

I have started fusing silver as you can see on this piece the chain is hand made as well as wirework and it is a crazylace agate and beach glass swarovski crystal.

Thanks again for all you do...

Chris

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Pricing and Selling My Jewelry

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Wishing you healing, and some suggestions:
by: Rena

Hi Chris,

Thank you so much for your kind words! :o)

I'm sorry to hear about your accident and prolonged recovery. But I'm glad you've discovered jewelry making! So many people have found that it's a wonderful form of therapy - both mental and physical - and it's an excellent thing to add to your healing arsenal!

Regarding the shop where your jewelry currently is:

When a shop owner is in possession of jewelry which still belongs to you (since it's on consignment and she hasn't paid you for it), she should most certainly respond to your calls and emails.

It's a good idea to have some kind of contact with your shop owners at least once a month when you're consigning your work there.

If she isn't sending you checks for the jewelry she's sold for you, and not responding to you - I would say this shop doesn't sound like it's going to be a successful place for your jewelry.

(Unfortunately, a shop owner has less incentive to sell your jewelry if it's on consignment than she would if she purchased your jewelry from you at wholesale, since she doesn't have any of her own money tied up in your pieces.)

If this shop is where you can go and check on things in person (or have a trusted friend go for you), it would probably be wise to go and find what the situation is with your jewelry there.

Although I've had some absolutely fabulous shops consigning my jewelry, I've also some real stinkers. Sometimes the only way to know how well a shop will work out for you is to give it a few months' trial with a limited amount of your jewelry.

And if you've already given this shop a fair trial of 3 to 6 months with no sales and poor communication, I'd consider removing your jewelry from that location....

(continued below):
...continued from above
by: Rena

If you do decide to take your jewelry inventory out of that shop, below are some other places where your jewelry might sell much better - either wholesale, on consignment, or by doing a trunk show during their high-traffic time.

(Tip: When you're choosing among places like the ones listed below, you're more likely to get a good response from independently-owned businesses than from national chains or franchises):

If you sell your jewelry wholesale or on consignment through any of the above types of local businesses, be prepared to offer to provide your own displays or cases for your jewelry.

Also, any time you rely on a third party (such as a shop, salon, sales rep, etc.) to sell your jewelry - ALWAYS get their ongoing input as to what kinds of things customers are buying / requesting at that venue, that you can create. In most places particular colors, sizes, styles, pieces, price ranges, etc. do especially well.

So designing jewelry for the existing demand is a huge success strategy for selling your jewelry!

I have a lot of info on wholesaling and consigning handcrafted jewelry based on many years of experience - and if you want to pursue this path for selling your work, I think you'll find some good direction there.

IMPORTANT: If a shop owner takes some of your jewelry on consignment with an attitude of "well, i'll take a few of your pieces and see if they sell" - those pieces probably won't sell in her shop.

It takes a positive, proactive shop to make good sales. In my experience it's usually best not to waste your time or tie up your inventory with wishy-washy shop owners....

(continued below...)
(...continued from above)
by: Rena

Now, about your pricing - since I don't know your supply costs, I can't give you any exact dollar figures.

But I highly recommend my Jewelry Pricing Guidelines as a starting point for setting profitable, reasonable prices on your work.

If you feel your prices are higher than your target market can afford, please DON'T lower your prices on your existing pieces. Instead, design different pieces of jewelry that you can price in your market's price range when you use my jewelry pricing guidelines.

One more thing you may find helpful:

If purchasing jewelry supplies is a stretch on your fixed income, here are some suggestions for getting jewelry supplies cheaply or even free.

Chris, I hope this helps! I think most folks who sell their creative work will agree:

Success is really just a matter of experimenting with all kinds of things till you hit on what works best for you - and not stopping till you get there! :o)

Best wishes to you on your jewelry journey - and in your recovery journey.

We care about you, Chris, so please keep us posted!
Pendent
by: Anonymous

That is a beautiful pendent ?
It looks as though you added silver around it.

Great Job ! Your work is inspiring !
I Found a Stinker
by: Rita

This is actually difficult to write about. I’m emotional about this, but maybe if I write about the situation it will somehow help others as well as me. I want to SCREAM, I feel stupid and gullible too.

One of the most difficult things, for me, is removing my jewelry from a shop and ending a relationship. I just took a hit for about $1100.00, and that’s my 60%. What is missing is mostly gold filled and sterling chainmail bracelets.

Is it stolen? Has it been sold? Has there been an insurance claim? I don’t know, all I know is when I went to the store and did an inventory I came up way short. The $ 1100.00 doesn’t include the first stolen, I am told, necklace.

Perhaps in the difficult economic times the money was used for overhead and maybe even food, who knows. I was totally caught off guard and that is my fault. I became complacent and didn’t want to offend the store owner. Had I laid down my mode of operation in the beginning I would not have felt like I would offend anybody by insisting on certain things.

So what is my plan for the future; I will only place a specified number of pieces in any one store. I will do my own spot inventory check once per month, two months maybe but no more than that. I will require that my work is kept together other than a piece being featured in a window display. I will be pro-active.

The signs that should have thrown up a big red flag:

1. In February, I had to ask for a check.
2. Communications started going down hill, I had to send two emails to get one very brief response.
3. My visits produced a cool reception.
4. My jewelry was co-mingled with other artist’s jewelry.

I will get paid, it may take a while and it may require court, it is to soon to know for sure.
Lesson Learned, grrrrrrr.
What a bummer, Rita!
by: Rena

I'm so sorry to hear about the terrible ripoff you experienced, Rita.

And what a waste of your valuable time sorting this issue out.

I hope you don't have to go to court over it.

Your plan for future dealings with shops sounds very wise - keeping much tighter rein on things and a close eye on what's going on in the shop.

Nearly every time I've had a sudden dropoff in communication from a shop owner, it's been because the shop was having financial problems / management problems - either of which is bad news for artists whose work is in the shop!

I've discovered there's also a lot of value in listening to my "gut" or intuition regarding the shops that have my jewelry on display. If I have any kind of a bad or uncomfortable feeling about the shop, the owner, or the communication I'm getting from them - it's a good bet something's not right.

One other thought -

A quick way I create proof of the jewelry I have in a shop is to photograph the entire batch before I deliver it. Sometimes I even do this quickly by putting all the pieces on my scanner and making a scanner photo of them. In addition to keeping this image for your own records, you could print out a copy of this photo and attach it to the shop owner's copy of your itemized list of the pieces you're delivering.

This might make it easier to prove any loss in insurance claims or court cases - and might make shady shop owners think twice about messing with your stuff if you're keeping irrefutable records of it, and they don't have the proof of paying you for it!
time for a change
by: Anonymous

I agree if you arent getting any communication from this shop then its time to pull out. You should be able to talk to the owner, see whats going on, get feedback and ask questions. If you dont have this kind of connection then it is probably a sign that you should look elsewhere for a more professional shop owner.

Sometimes we dont want to be pushy or offend shop owners but they are just people like us. And we have to be responsive in marketing our work. And if something doesnt feel right then that is your gut trying to tell you to make a change.

Sometimes things do well in one shop and not in others, whose to know why. My mentor says you need to be able to keep in contact with shops, this way they know you are monitoring your sales and activities and staying on top of your work and whats in the shop.

I am in a few shops and can talk to each of the owners about my jewelry, whats selling, whats not selling and stay on top of my business.

I think you should look for other shops that will welcome you and your work.

Good luck
Michelle
Dump them...seriously
by: Rachel

Hi Chris. I am so sorry to hear about your accident! I'm glad that you have discovered jewelry making though...like Rena said, it's very therapeutic.

As for the shop that is carrying your jewelry, I wholeheartedly agree with the people who have commented before me. The lack of response from the shop owner is setting off alarm bells all over the place. I would seriously consider removing your jewelry from that shop before you end up getting burned...not to mention all of your work/inventory that is tied up just sitting there.

By the way, I have to say that your work is fantastic. You certainly seem to be a natural because I was honestly surprised to read that you have "only" been designing jewelry for about a year. :)

Best of luck to you!
Rachel
Pricing formula
by: Terri

Rena: One thing I have wondered about the pricing formula. What does the "X4" take into account? I would have thought that multiplier would include things like labor, overhead, etc. Why not times 3 or times 5? I am just curious about that and would appreciate your further insights.
Terri
Why "x4" in Jewelry Pricing Formula
by: Rena

Hi Terri,

Thanks for asking!

The "x4" in my jewelry pricing formula enables you to set your retail price high enough so that if you sell your pieces at wholesale or on consignment to a shop, you'll still make a profit.

Wholesale and consignment prices are typically 50% to 60% of your retail price. So the $37 retail-priced bracelet in my jewelry pricing formula example would be wholesale-priced at $18.50.

The shop owner would then turn around and retail-price the bracelet at $37 and sell it to a customer who comes into the shop.

Your $18.50 wholesale price gives you a much smaller profit margin on your bracelet. So wholesale pricing usually requires the shop owner to purchase a minimum quantity of 6, 10, 12, (or however many) items at a time.

When you make and sell multiples of an item, your manufacturing and selling costs are lower, and you make up for the smaller per-item profit by selling more items at a time.

In contrast, when you're selling jewelry pieces one or two at a time to individual customers (at shows, home parties, etc.), you'll need to charge retail pricing to stay in business.

That extra money you receive when you sell your bracelet to a customer yourself, retail-priced at $37, gets eaten into quickly by booth fees, party hostess incentives, travel expenses, wear and tear on your displays, and other costs of selling directly to the public.

I hope this makes sense, Terri! :o)

If not, please let me know and I'll try to make it clearer! :o)

Actually, I think I'm going to add this info to my jewelry pricing formula article too - I'm sure you're not the only one wondering about the x4!
X 4 answer
by: Terri

thanks much Rena. Now, I get it. I don't like making more than one of something so that did not occur to me but I see how that works. Thank you for always being so generous with your information and for having this kind of forum for jewelry artists.

Terri
Always take pictures
by: Catherine

What Rena suggested about including photographs with an inventory really works. I, too, have had problems in the past when selling my jewels through consignment. But once I stated including photographs with an inventory eight years or so ago, problems have virtually vanished. I remember one place where the owner said "Oh, no, you never brought that in". I whipped out my copy of the inventory with photographs, showed the owner her dated signature and got my money immediately (and also decided to sever my relationship)! Even though including photographs is initially a little more work, I will never ever let my jewels and an inventory out of my hands without photographs.
yes, pictures are good
by: Rita

I had pictures, I had a complete inventory list, that made no difference. What makes a difference in keeping track of things is being more active in doing "your own inventory, methodically.

I didn't do that, I trusted. If I had trusted my own gut, I would have pulled my inventory weeks before I did. That's the hard part, wanting to have inventory in front of people because it sells faster that way.

The greed factor, it's no different than when people lose money in the markets. You get in the market, watch it go against you until it tanks, then you wake up.

The one big lesson: If a store owner starts blowing you off; stops communicating; get out and cut your losses.
Consignment
by: Brenda

<<<<<< Rena says: A quick way I create proof of the jewelry I have in a shop is to photograph the entire batch before I deliver it. Sometimes I even do this quickly by putting all the pieces on my scanner and making a scanner photo of them. In addition to keeping this image for your own records, you could print out a copy of this photo and attach it to the shop owner's copy of your itemized list of the pieces you're delivering.
>>>>>>

I do this as well, sometimes just so I can remember whats where! lol

Brenda Braun
Decadence 2 Boutique
You're right, Brenda -
by: Rena

...it is handy for that!

I've also used my scans / photos of jewelry batches to double-check exactly which components I used in an item that turned out to be a hot seller in that shop!
Dealing with shops and consignment
by: Michelle

Hi
I too have had situations where I have put my jewellery in a shop and found that they weren't looking after it or it was getting lost etc.

Now with every new shop I deal with, I start with a 1 month arrangement, with a set date to review and revisit them, I make an appointment with them for a months time from the day I take it in.

If they haven't sold anything within a month, its usually a good sign that they are not promoting or displaying the jewellery properly and are probably not the best outlet for my work. I can then pull it out with no offence on either side.

I also make up a stock list with a code, description, cost price and retail price, for the stock I take in, and write a contract at the bottom of that stock list that they have to sign and agree to.. including payment dates, loss or theft clauses etc. This makes them respect the business transaction a whole lot more, and makes them respect you and your work as well. And you have their signature for any legal purposes if it comes to the worst. Insurance companies would also need something like this if they had to pay out on any stolen or lost work of yours.

If you aren't comfortable with anyone who has your jewellery, go in and get it back straight away. It's your property and your hard work.
If a shop is in trouble, liquidators can seize the stock, which might include your work, and you may not get it back in a hurry!

If your jewellery isn't selling it is not because of the price or the quality, as I have seen the most overpriced items sail out the door at high speed in the right environment.

Find your comfortable niche and stick to your guns. Think of yourself as just another supplier to the shop, and try to take the emotional part out of the transaction if you can.
Remember it is your money sitting in their shop, your hard work and your talent!
Good luck
Shelle

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