Pricing Handmade Jewelry Too Low

by Rena Klingenberg
(Home Jewelry Business Success Tips)

(A pretend jewelry ad I created to illustrate our discussion.)

Many artists make the error of pricing their handmade jewelry too low.

Often it's for one of these reasons:

They don't value their own talent. They feel "lucky" to sell one of their pieces at any price, even if the sale barely covers the cost of their materials.

They believe their jewelry is "unworthy" of netting higher prices.

Their well-meaning friends and family (who don't know anything about the handmade jewelry market) urge them not to "risk failure" by setting their prices too high.

If their jewelry isn't selling, they assume it's because of the pricing - so the first thing they do is drop their prices.

Their financial situation makes them desperate to make a sale, so they hesitate to put higher prices on their work for fear of scaring customers away.

They're not sure how to price handmade jewelry.

If you're not sure how to price your handmade jewelry profitably, please see my Jewelry Pricing Formula.

But why not charge low prices for your handmade jewelry?

I'm going to share some of my thoughts here, and then I hope you'll leave a comment below to share your thoughts and experiences regarding low prices on handmade jewelry!

Working Harder to Earn Less

Pricing handmade jewelry too low means the artist may have to make and sell 5 pieces of jewelry to earn $50, rather than earning the same $50 for just 1 piece.

When jewelry artists set themselves up to work harder while earning less, it's not a sustainable way to run a business.

Sooner or later the overworked artist tends to either burn out, or shut down the business because it's not profiting enough to stay afloat.

Growing the Wrong Customer Base

Under-pricing handmade jewelry also means that artists tend to attract a customer base that consists of "bargain shoppers" rather than "handmade jewelry shoppers".

That makes it hard for the artist to raise their prices without losing a big portion of their customer base.

It Devalues the Overall
Handmade Jewelry Marketplace

When some artists get into low-price wars, or try to compete with cheap imported jewelry, it can hurt other jewelry artists' sales.

Unrealistically low prices can cause some customers to equate "handmade" with "cheap pricing", and pass up jewelry that's priced higher and more realistically.

Undercutting other jewelry artists doesn't do you or your fellow artists any good.

You Don't Want to Make
This Kind of Jewelry Sale!

I've seen some jewelry artists actually buy other artists' low-priced jewelry ... specifically to take it apart and remake the components into a much higher-priced piece of jewelry!

The under-pricing artist is thrilled to make a sale - but has no idea their creation is being bought as a cheap source of jewelry supplies.

Don't let that happen to you!

Please share your comments and
experiences below!

Comments for
Pricing Handmade Jewelry Too Low

Click here to add your own comments

Hey, You're pricing is too low!
by: EmandaJ

I was at a church convention with many vendors. There was a sweet little lady sitting behind gift boxes of her handmade jewelry at bargin basement prices. I spent ten minutes telling her it doesn't do her or me or any other handmade jewelry artist any good for her to under-sell herslf. I think I made a convert. The next year her prices were slightly higher (but still low). Her customer base is the retirement center where she lives -- folks with limited income.

Emanda

When jewelry customers have a small budget
by: Rena

Emanda,

Great idea, to enlighten the sweet little lady who was charging bargain prices! :o)

I'm glad she took a step in the right direction (even though it was a small step!).

What should jewelry artists do when their customer base has a small budget, like the lady you mentioned?

In that case I recommend creating jewelry that's profitable at lower prices.

It kills me to see artists drop their jewelry prices if their clientele can't afford it.

I always say, "Please don't reduce the prices on your jewelry to sell it at lower price points!"

Instead, I recommend creating a different line of nice but quick-to-make jewelry from less expensive components. These jewelry items should wind up netting the artist a good profit when priced under $20.

Designing jewelry to be profitable for the artist while fitting the customers' budgets is a good business strategy.

But creating any jewelry the artist feels like, and then dropping the prices to fit the customers' budgets, isn't such a good strategy.

pricing too low
by: Kim Isner

I tried Rena's idea of creating jewelry at lower prices, because my sterling silver bracelets were rightly priced high. At the craft show, it gave shoppers an option. Plus, the lower priced jewelry was Ohio State Buckeye jewelry, and because we have rabid Buckeye fans here, those items made sales!

Multiple pricing for one piece.
by: Rita Juhlin

Knowing what my cost is enables me to change the pricing of a piece of jewelry to fit the market, always keeping in mind I need to make a reasonable profit. I don�t and cannot do this selling on the internet but since the majority of my sales come from in-store consignment sales, I can.

When selling in a gallery setting the piece is presented much more dramatically than if the jewelry displayed in a coffee shop or an out door casual art fair. In a gallery the emphasis is on art; and those who appreciate the art, design and uniqueness more than the materials will find a higher price acceptable.

I have also experienced some guilt in knowing what the cost of a piece is; having a store owner put an outrageous price on a piece and selling it within hours, (woohoo) but I got over the guilt quickly. (lol)

My rule is to be fair in my pricing at least when I price something. I really believe that some home-based jewelers �lack confidence� in their work which equates to one reason for under priced jewelry. My guess is that from the buyers prospective, low pricing equates to damaged goods or inexpensive costume jewelry.

Confession: guilty of emailing fellow home-based jewelers and letting them know, in a nice way of course, that they should raise their pricing and why. My opinion is experienced based and I look really hard at craftsmanship and design before I start the conversation. I�ve never let anyone know I think they are over priced; I just roll my eyes and go on.

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Submitted by: Rita Juhlin

Title

Comment
Knowing what my cost is enables me to change the pricing of a piece of jewelry to fit the market, always keeping in mind I need to make a reasonable profit. I don�t and cannot do this selling on the internet but since the majority of my sales come from in-store consignment sales, I can. When selling in a gallery setting the piece is presented much more dramatically than if the jewelry displayed in a coffee shop or an out door casual art fair. In a gallery the emphasis is on art; and those who appreciate the art, design and uniqueness more than the materials will find a higher price acceptable. I have also experienced some guilt in knowing what the cost of a piece is; having a store owner put an outrageous price on a piece and selling it within hours, (woohoo) but I got over the guilt quickly. (lol) My rule is to be fair in my pricing at least when I price something. I really believe that some home-based jewelers �lack confidence� in their work which equates to one reason for under priced jewelry. My guess is that from the buyers prospective, low pricing equates to damaged goods or inexpensive costume jewelry. Confession: guilty of emailing fellow home-based jewelers and letting them know, in a nice way of course, that they should raise their pricing and why. My opinion is experienced based and I look really hard at craftsmanship and design before I start the conversation. I�ve never let anyone know I think they are over priced; I just roll my eyes and go on.

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competing with the hobbyist
by: Anonymous

I have run into a lot of jewelry hobbyists at shows who are "in it" to recoup their cost to buy more beads.
I had a lady tell me, (I was in the booth kitty-corner from her) that she had $50 in parts in a piece...with a $54 price tag on it. Yikes...!
I'm guessing the only way to get away from the hobbyist is to be more selective of types of shows I apply for.
Any other suggestions...?

Soooo True
by: Debra

Thank you so much for this great information. We have to price our items for the time, supplies, and your expertise. We can't price to low in order to get sales because if we do we will never be able to rise our prices because we have attracted people that won't to talk you down or it's like a biding war they will have gotten used to those prices and when you add it all up you've lost out all together you had to do the same amount of work, pay the same prices for supplies.

Thanks great article

pricing
by: Sandy

Great article - thanks! I figured my cost on a popular item I sell at $40-45 w/ your formula. Came to $72. I certainly get the logic & rationale. I had raised my prices my 2nd year in business (this year) yetI have not been able to sell the pieces I offer higher than $45 very easily at all, so $70?? I just doubt it. More/better marketing? Better shows? All would be good I guess. I'm still building a market & clientele - my stuff is part jewelry/part "other" so I am doing alot of education about what's it about. Tough stuff.

Lowering your prices hurts everyone
by: Anonymous

This is a problem withmany items being offered at such low prices that I wonder if they are losing money rather than making it. It puts other sellers in a bad position as well, forcing everyone's prices lower than is fair or reasonable for their products. If you are barely covering the cost of your materials then you are working for free, and that's just nuts.

Find the right place to sell
by: jennyferrow

If you have the right customer then your price is justified and able to pay you a wage. I had some silver and stone pieces in a shop and they were not selling so I put them on sale. A woman bought a piece and didn't realise it was on sale until paying. She liked the piece and wanted to buy it regardless. I just lost money because I thought it would sell quicker if it was cheaper. Maybe we just have to make sure we have more exposure to the right kind of customer.

Hobbyists Vs Artists
by: Anonymous

I guess when it comes to this debate I'm not sure where I fall. I would consider myself a hobbyist but that could be because Ive seen the work that is out these and I feel like mine just doesn't compete. Maybe that's just me being insecure and I know that it translates into me having low prices but I now completely understand why this is not right for me; or my fellow 'artists' in the market place. I might just have to bite the bullet and put them up - hoping that my work is as good as everyone else s.

Sandy - RE: Pricing your $40-45 item at $72
by: Rena

Hi Sandy,

If your customer base gravitates toward your pieces priced in the $40's, you may want to focus your line on pieces that are created to be profitable at that price range.

In addition to that price range, I think it's also a good idea to have a line of higher-price pieces, such as your $70-ish item. That way you also have items for higher-spending customers. Plus, I find that once lower-spending customers have shopped from me a few times, they start looking at (and buying) my higher priced items as well.

Just a thought!

Thanks for the article
by: BeadJewelled

Thank you for your article.
I've always found that customers don't respect work that is too cheap.

I try to offer a wide range of price points to appeal to many budgets.

The biggest mistake I find is jewelers apologizing for their prices. ie: "I'm sorry, but that piece is..." You have to look the customer in the eye and confidently state your price. The customer will pick up on your confidence and pride in your work.

Early in my career I would play with prices, raising and lowering them, looking for the magic number. More often than not, raising the price sold a piece faster than lowering it.

I liked your basic formula but felt that your wholesale price was too low.

Thanks again for combating the scourge of underpriced jewelry.

Perceived Value
by: Sheryl

Many customers place a value on something they see AFTER looking at the price. Rarely do I see a piece of handcrafted jewelry or other item, that I think is overpriced. I think it is common for many people to have the "If I can do it, anybody can" attitude, so we naturally lower our prices to reflect that perceived value. I know I do. I have seen my abilities grow with each piece I make, yet my prices have remained fairly stagnant over the years. I am now preparing several pieces for a gallery in Cape Cod. You can bet, I'm going to ask a REASONABLE price this time!

Consider Factoring in Profit
by: Patti Leftwich

I recently read a great article on the subject of pricing handmade jewelry in one of the art jewelry magazines.
I agree with Rena-her formula for calculating a fair and reasonable price is very valid, however this article made me consider another factor-profit. The article suggested that you should not only consider material costs, labor and overhead, but also a profit margin. A profit margin is not the same as paying yourself for labor costs. Another way of looking at it, imagine that you paid your friend or daughter labor costs to make some of your jewelry...the profit margin would insure that your business receives a profit from a sale, after you paid your helpers. If in fact it is you providing all the labor, it makes no difference, your business also needs to be "paid". And by adding in a profit margin you also help alleviate the cost of replacing materials which probably have increased since you purchased them for your project. Like most of us, I am a solo gig, but I have started adding 3-5% to my prices to factor in profit. I also factor in sales tax, which customers love, because the price they see is the price they pay. I have signage in my booth that tells customers that price includes tax and that has made a positive difference in sales. I round off the price too, which is easier for me and the customer-no more handling coins, and easier math!

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Submitted by: Patti Leftwich

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I recently read a great article on the subject of pricing handmade jewelry in one of the art jewelry magazines. I agree with Rena-her formula for calculating a fair and reasonable price is very valid, however this article made me consider another factor-profit. The article suggested that you should not only consider material costs, labor and overhead, but also a profit margin. A profit margin is not the same as paying yourself for labor costs. Another way of looking at it, imagine that you paid your friend or daughter labor costs to make some of your jewelry...the profit margin would insure that your business receives a profit from a sale, after you paid your helpers. If in fact it is you providing all the labor, it makes no difference, your business also needs to be "paid". And by adding in a profit margin you also help alleviate the cost of replacing materials which probably have increased since you purchased them for your project. Like most of us, I am a solo gig, but I have started adding 3-5% to my prices to factor in profit. I also factor in sales tax, which customers love, because the price they see is the price they pay. I have signage in my booth that tells customers that price includes tax and that has made a positive difference in sales. I round off the price too, which is easier for me and the customer-no more handling coins, and easier math!

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Glad to read this article and comments!
by: Cindi

I find that pricing is the most difficult part of my business. It has taken me years to price things at a high value. I was encouraged by one of my suppliers to increase my prices (thanks, Lynn).

I also prefer making high-end jewelry, but do try to include some pieces at lower prices (but not too many). I want to attract a higher-end clientele.

I believe that the current economic conditions (people are really not spending that much on unnecessary things) has aided and abetted in the problem of jewelry being priced too low.

pricing
by: Barbara

I agree with everyone. I sell regularly at a Saturday farmer's market which is attended by people from all walks of life and with all budgets. I learn and practice my new skills on cheaper wire and using inexpensive beads and materials -- and price accordingly, keeping in mind there are a lot of kids and lower income shoppers -- and then switch to sterling and higher quality semi-precious and price those accordingly. What has happened over the past year is that I am now attracting the notice of and making sales to business professionals and summer tourists who attend the market.

One day I had a discussion about pricing and materials with the owner of the store that carries some of my work. She told me that people buying gifts don't want to appear cheap -- particularly husbands! When it comes to gifts people want to be generous and are prepared to not just pay more for something but to buy something worth more. So, yes, we should charge what something is worth and not apologise!

I think what holds me back in pricing is that I would never in a million years pay so much for jewellery for myself. Sometimes when I do the pricing calculations it takes my breath away! But we have to remember that this jewellery isn't for us. Quite apart from being mindful of the venue we're selling in, so long as we stand behind the quality of our materials, design and workmanship, then that's the price, and someone will come along who will appreciate that and be more than happy to pay for it.

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Submitted by: Barbara

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I agree with everyone. I sell regularly at a Saturday farmer's market which is attended by people from all walks of life and with all budgets. I learn and practice my new skills on cheaper wire and using inexpensive beads and materials -- and price accordingly, keeping in mind there are a lot of kids and lower income shoppers -- and then switch to sterling and higher quality semi-precious and price those accordingly. What has happened over the past year is that I am now attracting the notice of and making sales to business professionals and summer tourists who attend the market. One day I had a discussion about pricing and materials with the owner of the store that carries some of my work. She told me that people buying gifts don't want to appear cheap -- particularly husbands! When it comes to gifts people want to be generous and are prepared to not just pay more for something but to buy something worth more. So, yes, we should charge what something is worth and not apologise! I think what holds me back in pricing is that I would never in a million years pay so much for jewellery for myself. Sometimes when I do the pricing calculations it takes my breath away! But we have to remember that this jewellery isn't for us. Quite apart from being mindful of the venue we're selling in, so long as we stand behind the quality of our materials, design and workmanship, then that's the price, and someone will come along who will appreciate that and be more than happy to pay for it.

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Some Historic Rena Advice
by: Kathie L

Thank you for sharing your article! Great advice! Here's a piece of advice that Rena gave several issues back --> boy does it help! She said to use your more glamorous (my word not Rena's) piece on advertisement's etc. She noted that this piece may not sell (right away); however, it will bring customer's in with their curiousity. Once they enter your publication, they can see the more reasonable priced items. The expensive piece/s may not sell right away --> but give them time! They work well to attrack curious on-lookers and may even get you some serious customers --> there for the return sales. Good luck to you!

You're worthy!
by: Barbara herndon

As long as we have millions of gals giving it away, it will always be a struggle to sell at a profit. But consider how many come and go - will you be able to find them if something goes wrong?

Consider quality - It takes five minutes to learn a skill, five years to be really good at it, and maybe another five learning to stand out.

Consider price - When was the last time YOU dreamed of owning something cheap? I LIKE nice things, and as a woman, also feel like I'm WORTH nice things. What man do you know who prefers his woman in cheap stuff?

Let's make lovely, quality things and sell women on the idea that they are more than worthy to own the very best and that their men desire and deserve a woman they can show off!

barbaraherndon.com

Thanks Rena
by: Anonymous

Thanks Rena for a great article. I struggle with this subject, but reading your article is making me value my work. If I value what I do, then others will follow.

Know your audience, price accordingly
by: Erin

I have had discussions with artist friends whom I think price too low. I was told by an artist that she got into it and priced to cover her costs and buy more beads. But now it has taken off and she is very popular, and I told her that she needed to upsell... still offer those $45-50 bracelets and necklaces, but also have a line that edges it up to what it is really worth. Especially if it includes art beads...those are VERY costly (and well worth the expense, I might add). I sometimes worry for her that she is undercutting herself and her amazing talent, and also the rest of us.
I believe that we have a right to charge what we are worth, and that most who start making jewelry don't believe in their worth. I use a pricing similar to Rena's, but charge x5. That gives me room to adjust if necessary, plan for future wholesale selling and take care of a profit margin (I like that idea). I used to obsessively write down every component and how many of each and then calculate it all. Now I am pretty good at knowing what the value needs to be within my framework.
I do believe firmly in finding the right buyers for your wares. I don't take every offer to sell my work if I don't feel that it is the right fit. I sell my work in an artist's coop, a custom goldsmith studio and a high end fundraising show each year. I am very selective about it, not snobby, but I am not looking for bargain hunters. I am seeking those who appreciate art and one of a kind and stand out sort of pieces. Knowing your client base is so important.
Thanks for the insightful article, Rena!
Enjoy the day!
Erin

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Submitted by: Erin

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I have had discussions with artist friends whom I think price too low. I was told by an artist that she got into it and priced to cover her costs and buy more beads. But now it has taken off and she is very popular, and I told her that she needed to upsell... still offer those $45-50 bracelets and necklaces, but also have a line that edges it up to what it is really worth. Especially if it includes art beads...those are VERY costly (and well worth the expense, I might add). I sometimes worry for her that she is undercutting herself and her amazing talent, and also the rest of us. I believe that we have a right to charge what we are worth, and that most who start making jewelry don't believe in their worth. I use a pricing similar to Rena's, but charge x5. That gives me room to adjust if necessary, plan for future wholesale selling and take care of a profit margin (I like that idea). I used to obsessively write down every component and how many of each and then calculate it all. Now I am pretty good at knowing what the value needs to be within my framework. I do believe firmly in finding the right buyers for your wares. I don't take every offer to sell my work if I don't feel that it is the right fit. I sell my work in an artist's coop, a custom goldsmith studio and a high end fundraising show each year. I am very selective about it, not snobby, but I am not looking for bargain hunters. I am seeking those who appreciate art and one of a kind and stand out sort of pieces. Knowing your client base is so important. Thanks for the insightful article, Rena! Enjoy the day! Erin

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Getting Over Myself
by: Donnie

Having limited funds for myself for so long has led to the the cheap syndrome. I would never spend that much money on myself because I can't afford it. Getting involved in creating jewelry myself has taught me to appreciate the work that goes into the thinking, planning & creating a quality piece of
jewelry. That has caused me to see other artists & their pricing in a totally different light. I am getting over my deficiencies & seeing myself in the same light - what I have & what I do is precious, it is a part of me & that part of me is creating something precious for my customers. If they choose to pass something by because they feel it is priced too high for them then they are they ones who are missing out. I do not take it personally!

Target your jewelry line
by: Cloud Hale Design

I've recently determined that you can't be everything to everyone. Choose to make jewelry that is profitable & affordable to your existing clients OR choose to make jewelry that is higher end & sell where the clients can afford it. I recently had my worst show - it was juried & the type I normally do really good at. While the traffic was slow, I don't think that was the only reason. I had everything from $16 earrings to $300 necklaces. I sold hardly anything, but the artist who had only high end stuff starting at $300 sold a decent amount, and the artist who had mostly earrings under $50 also sold plenty. Why? Their lines where targeted! People who looked first at my high end stuff & couldn't afford it walked out without noticing my lower priced stuff. I think my lower priced stuff "cheapened" my high end stuff - customers have a hard time understanding the real differences in their costs. Why did the high end artist do so well? The jewelry was very cool & technically difficult - i.e. he doesn't hear "Ooh, I could make that" and he doesn't appoligize for for his expensive prices. I have been focusing on my PMC & wirework pieces, & I think I will phase out my lower priced earrings.
Tina

Jewelry vs Painting pricing
by: Cloud Hale Design

Why is it that when we(jewelry artists) price jewelry & some customers evaluate our prices we tend to think about the material cost & the basic labor for assembly. What happened to the ARTISTIC TALENT?? What separates beautiful jewelrly from ordinary crafty or mass produced jewelry is the artistic talent. Why is it that nobody tries to price a painting based upon the material costs of the canvas & paints? Paint & canvases are cheap - shouldn't we be able to buy a painting for $20?? NO! It's all about the artistic talent that turned the materials into art - that's what we pay for! Don't forget jewelry is art too, and you are an ARTIST!
Tina

phasing out low end jewellery
by: Barbara

I agree with Tina, particularly when it comes to craft shows. I've seen the same thing. It's funny -- I am most attracted to the very spare, well laid out displays. My table tends to get a bit disorganised looking -- well, let's be honest: junky-looking -- because I want to put everything out all at once. I've enlisted a neat freak friend to help me simplify.

Even though above when I talked about having different things and price ranges on offer on the same table at the farmer's market, I've now got things clearly separated, and I'm not replacing a lot of the items. If anything, I'm trying to up the quality and price of my lower-priced things.

I've been there long enough that most people have gotten to know me and they go straight to what they want, but if people tell me they've never seen my stuff before, I give them a little guided tour of the table explaining the price ranges and what I'm trying to do.

Craft shows are very different. You've got literally a few seconds to attract someone's eye, and it's a one-off occasion. Despite their best intentions, people very rarely will come back after looking around. Either they've forgotten all about you, or they've spent their money or the show is closing.

An eye-opening exercise in pricing your work
by: Sandra Patrick

I've been a visual artist for many years & started making jewelry about 6 years ago. I'm also a business person & financial officer for our landscape business. I know you have to have a good formula plus a wiggle factor when pricing your(any)work. I target the upper clientele in my jewelry & researched to find the best formula to price my jewelry. First- I know the cost of each component that goes into the piece - down to the wire & crimps! My general formula is: Cost (ie, cost of goods sold) x 2 = A. A + labor cost (time at $20/hr average for a bench jeweler) + design time (at $20-40/hr) = B. Cost B is your actual COST to produce the item. Now add your overhead (includes studio, utilities, cell phone, travel time, fees to shows, misc tools, etc..) which for me is about 20% of the cost. So Cost B x 1.20 = Cost C. Final addition: add your PROFIT. If you want to achieve a 20% profit, then cost C is really 80% of the piece & profit $$ is 20% to equal 100% sales price. How do you get THE SALES PRICE? Divide Cost C by .8 and that equals sales price. Then - look at the piece itself - is it so unique and well-crafted that it could be even higher priced? Will your clientele want it no matter what the price (the wow factor). You could nudge it up even more. Guess what - if you want to wholesale it to a shop or gallery - this sales price is actually your wholesale cost! The true retail cost of the piece is double your desired sales price. If someone asks you if you can lower the price for a piece, you can tell them that this is actually a wholesale price, it would be twice that if they were to buy it in a shop or gallery!

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Submitted by: Sandra Patrick

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I've been a visual artist for many years & started making jewelry about 6 years ago. I'm also a business person & financial officer for our landscape business. I know you have to have a good formula plus a wiggle factor when pricing your(any)work. I target the upper clientele in my jewelry & researched to find the best formula to price my jewelry. First- I know the cost of each component that goes into the piece - down to the wire & crimps! My general formula is: Cost (ie, cost of goods sold) x 2 = A. A + labor cost (time at $20/hr average for a bench jeweler) + design time (at $20-40/hr) = B. Cost B is your actual COST to produce the item. Now add your overhead (includes studio, utilities, cell phone, travel time, fees to shows, misc tools, etc..) which for me is about 20% of the cost. So Cost B x 1.20 = Cost C. Final addition: add your PROFIT. If you want to achieve a 20% profit, then cost C is really 80% of the piece & profit $$ is 20% to equal 100% sales price. How do you get THE SALES PRICE? Divide Cost C by .8 and that equals sales price. Then - look at the piece itself - is it so unique and well-crafted that it could be even higher priced? Will your clientele want it no matter what the price (the wow factor). You could nudge it up even more. Guess what - if you want to wholesale it to a shop or gallery - this sales price is actually your wholesale cost! The true retail cost of the piece is double your desired sales price. If someone asks you if you can lower the price for a piece, you can tell them that this is actually a wholesale price, it would be twice that if they were to buy it in a shop or gallery!

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Dropping Jewelry Prices
by: Anonymous

Wow, this topic has the most comments I've seen on this site!!

OK,,,I have a store on Etsy..and (said with the utmost shame and guilt), have reduced my prices..all in the name of tryin' to make a sale...and STILL, NO SALE!

This was a serious judgement error, on my part. Because it is not a true worth/value and I don't mass-produce...even if I sell it..I sold it at a loss.

Also, what I tend to forget is just because components have been sitting in my inventory...doesn't necessarily mean they've lost value.

I thought I would gather a loyal following and then raise prices...but that's not a good business practice, either.

Customers admire my work, but when I tell them the cost..they hesitate. When I tell other jewelry designers my price, they've all said, "You're pricing it too low".

My friends/family are the kind to wear solid gold and precious stones...so they see my stuff as costume. Those who wear costume, see my stuff as over-priced. I need to find those in the middle.

If I want to sell stuff for a dollar, then I need to make it from stuff that cost pennies and the reverse.

Good discussion!!
shocdesigns.etsy.com

Pricing
by: Aileen

I have enjoyed reading all the comments and this newsletter for over a year now. I bought Rena's book on the "ultimate guide to a profitable booth" last year. I read it cover to cover in a short while. Then I implemented many of the things I read. The biggest one was pricing. I had a beautiful piece of Ammolite over 40 carats. I had 14kgf Wire sculpture wire on it. I included a 14kgf chain. I carried this piece around to several shows. I had it priced orinally for 115 so I raised it to 195 still nothing so I raised it to 450 it sold at a festival. All the while I kept educating people on the price. I told them that I saw a piece on a jewelry shopping channel for twice as much on half the size and in sterling. The woman could not get it fast enough.
Since then I have kept my prices on the higher end. I also feel that since I am making one of a kind pieces that there is one special person who that piece was meant for. So I continue to carry from show to show so that the two can be united. If a piece does not sell one year, I raise my price the next year.
Now I am no longer embaressed about my prices. I see in magazines all the time people who have been doing this a lot less time than me and not the same quality charging far more than I do.
Come see some of my work www.aileensart.com

Wow!
by: Terri wlaschin

I think I have held every opinion on this page at one time. I have now come to see pricing as a personal thing. By that I mean I may have the same materials as some one else but I may have paid a lot more or less than them. And, my level of creativity, complexity, and design capability may be different from theirs as reflected in how I use the materials in a piece even if the materials and the time it took to make it is the same. I do believe that if you price low, you will attract bargain hunters and a clientle that will want to negotiate pricing even further. But I also believe that to price higher the quality of your piece and your reputation better be impeccable if you hope to sell and stay in business. I think selling at the high end requires the patience to build trust and relationships with customers and hone your skill in jewelry making. When I was buying jewelry, I would not have paid more than $100 for anything from someone I thought I was only going to see once at a show. If they had an online presence or were local, I might consider that...after I got to know them. I sell on etsy but most of my sales (online and offline)are to people I already know from building relationships and a mailing list over time. So, if I am at a show, I really don't worry about how other people are pricing because I see their work as different from mine. Or, if it is similar and they are priced low, I just figure they will attract a different kind of customer than I want. I would not lower my prices just because someone else does because of what it does to me and my feeling about my work. Most times I lower my prices because I am tired of seeing the item:) My main goal at shows (besides selling of course) is to meet potential new customers and maybe get them on a mailing list and to a home show and hope, over time, I will make them lovers of my jewelry. Having said all that, I know some people are struggling to make a living and I support them doing whatever they think they need to make that happen.

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Submitted by: Terri wlaschin

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I think I have held every opinion on this page at one time. I have now come to see pricing as a personal thing. By that I mean I may have the same materials as some one else but I may have paid a lot more or less than them. And, my level of creativity, complexity, and design capability may be different from theirs as reflected in how I use the materials in a piece even if the materials and the time it took to make it is the same. I do believe that if you price low, you will attract bargain hunters and a clientle that will want to negotiate pricing even further. But I also believe that to price higher the quality of your piece and your reputation better be impeccable if you hope to sell and stay in business. I think selling at the high end requires the patience to build trust and relationships with customers and hone your skill in jewelry making. When I was buying jewelry, I would not have paid more than $100 for anything from someone I thought I was only going to see once at a show. If they had an online presence or were local, I might consider that...after I got to know them. I sell on etsy but most of my sales (online and offline)are to people I already know from building relationships and a mailing list over time. So, if I am at a show, I really don't worry about how other people are pricing because I see their work as different from mine. Or, if it is similar and they are priced low, I just figure they will attract a different kind of customer than I want. I would not lower my prices just because someone else does because of what it does to me and my feeling about my work. Most times I lower my prices because I am tired of seeing the item:) My main goal at shows (besides selling of course) is to meet potential new customers and maybe get them on a mailing list and to a home show and hope, over time, I will make them lovers of my jewelry. Having said all that, I know some people are struggling to make a living and I support them doing whatever they think they need to make that happen.

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Middle of the road
by: Vicki

I consider myself the middle of the road, in my pricing. Many people have told me I need to raise my prices, but just as many have told me I was to high! Go figure...any way I sell a good amount of items and I am happy, so i guess there is a clients that need the middle of the road too! I think what bothers me, about alot of the higher pieces, is that "they are just not worth it'! I have just seen necklaces, made of one string of twine two or three knots and four or five beads, and was asking $65.00 for it. Whats with that? Any way just wanted to make a point to pricing ridiculously high also! I know,I know, I will get pulverized by this,but just another opinion! Good luck everyone!

Maybe you don't know
by: Millie

Some time ago I handcrafted a piece of sculpture and I priced it at $25.00. Hmmm, a woman came by and asked why the piece was priced at $25.00.

I said I felt that it was a fair price and she promptly handed me $75.00 and said "My dear, you don't know what you are worth."

I'm sure you get my meaning here.

Millie \o/
Overstocked with Rocks

Paying More
by: Barbara

I've had people do the same thing on several occasions, give me more money for what they bought. Really does make you rethink how you're pricing things.

Some things to think about
by: Lisa W.

I have read all of the comments here, many with very good points. Here are a few other bits for thought. A profit is required if we want to grow our business, and for some of us, if we want to eat and pay rent. Even non-profit organizations make a profit, or they can NOT stay in business. Their profit margin is restricted, but they DO make a profit. Do you?

Counting all of our components to create a basic materials cost is a good strategy - IF we are making all of our jewelry from components. The minute we begin to create our own materials, we are in a new realm, and component cost becomes only a portion of our materials cost. What about those materials that are required for our work, but are not components? In my case, there is acetylene torch fuel, flux, solder, pickle, oxidation chemicals, etching chemicals, sanding materials, buffing materials... and that is just a partial list, I could go on. I know this is true of many of us: we HAVE to consider our consumables! If our pricing structure doesn't build in an ability to replace consumables, we are NOT making a profit.

What about our studio tools? If all we need are a few pair of pliers to do our job, there is less concern than if we need a studio to do it. have you been buying new hammers? A kiln? A rolling mill? A torch? Better pliers? Please realize that the cost of our pieces must pay for every tool we own, or we are NOT making a profit!

I know the point has already been made, but we must also pay ourselves separately for our time, as if we had hired someone to work for us, because in the future, it is likely that we will. If not, we are NOT making a profit!

Have you considered that we will pay income tax on our profits, and therefore, we must raise our prices enough to cover the taxes we will pay? If not, we are NOT making a profit!

There is so much more to say on this, but here is the bottom line: If your prices are low, it is possible that without knowing it, you are losing money with each piece you make and sell, and you will not find it worthwhile to continue. This is why successful jewelry businesses seem to have such high prices. In addition, the artificially low prices you are charging make it much harder for those with more legitimate prices to survive. Finally, if you charge low prices, you are telling your customer that your work is worth little; they will be appropriately suspicious.

There is so much more to think about, here, but as a community of artists and business owners, we should want to keep our quality high and our prices appropriate. Educating and helping one another is keeps us all moving forward together!

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Submitted by: Lisa W.

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I have read all of the comments here, many with very good points. Here are a few other bits for thought. A profit is required if we want to grow our business, and for some of us, if we want to eat and pay rent. Even non-profit organizations make a profit, or they can NOT stay in business. Their profit margin is restricted, but they DO make a profit. Do you? Counting all of our components to create a basic materials cost is a good strategy - IF we are making all of our jewelry from components. The minute we begin to create our own materials, we are in a new realm, and component cost becomes only a portion of our materials cost. What about those materials that are required for our work, but are not components? In my case, there is acetylene torch fuel, flux, solder, pickle, oxidation chemicals, etching chemicals, sanding materials, buffing materials... and that is just a partial list, I could go on. I know this is true of many of us: we HAVE to consider our consumables! If our pricing structure doesn't build in an ability to replace consumables, we are NOT making a profit. What about our studio tools? If all we need are a few pair of pliers to do our job, there is less concern than if we need a studio to do it. have you been buying new hammers? A kiln? A rolling mill? A torch? Better pliers? Please realize that the cost of our pieces must pay for every tool we own, or we are NOT making a profit! I know the point has already been made, but we must also pay ourselves separately for our time, as if we had hired someone to work for us, because in the future, it is likely that we will. If not, we are NOT making a profit! Have you considered that we will pay income tax on our profits, and therefore, we must raise our prices enough to cover the taxes we will pay? If not, we are NOT making a profit! There is so much more to say on this, but here is the bottom line: If your prices are low, it is possible that without knowing it, you are losing money with each piece you make and sell, and you will not find it worthwhile to continue. This is why successful jewelry businesses seem to have such high prices. In addition, the artificially low prices you are charging make it much harder for those with more legitimate prices to survive. Finally, if you charge low prices, you are telling your customer that your work is worth little; they will be appropriately suspicious. There is so much more to think about, here, but as a community of artists and business owners, we should want to keep our quality high and our prices appropriate. Educating and helping one another is keeps us all moving forward together!

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Undercutting
by: Skyfire

I'm also a writer and editor, and I see the same problems there as well. Instead of charging a professional wage, I've seen freelancers undercut competitors by charging minimum wage and less just to get the work. This does everyone a disservice. Also, a lot of people think of "homemade" as something cheap and tawdry that was just thrown together without any thought or care. My own mother had that attitude and would be insulted if I gave her something I created myself. She insisted on something "nice" from a store. We must remember that we are not just hobbyists throwing things together to make some spare change, we are artists and professionals and should be treated as such. We should treat ourselves as such.

Pricing too low
by: Karen

Being fairly new to jewelry making (but being of a creative nature all my life), I too have had internal battles on where to settle my prices. I recently heard an interivew with Dr. Weiman who cited an incident where a artist made a ring and sold it for $79. The person who he sold it to had a gallery in California and resold the same ring for $850!! I think "perceived value" has to be included in any pricing formula. And I think you have to have a target audience in mind. As I am trying to support myself while being caretaker for my mom (I live with her and she pays the expenses), I feel I want to attract a mid-price shopper. Let's face it, in this economy, jewelry is a luxury, impulse item. No one HAS to buy jewelry to survive. As someone else said, it's also hard to price items at a point where you know yourself you wouldn't pay. But I do take into consideration time and materials. Right now, because of my living situation, my time is my profit. So I think I can build and raise prices as time goes on.

One specific thought came to mind as I listened to Dr. Weiman's interview. My first "show" was at a church yard sale. I wanted to "test the waters" and see how well my designs would go over. NOT ONE PERSON tried to bargain with my prices! Lesson taken - I'm pricing too low! I will raise them a bit before my first craft show this weekend.

Great thread - I enjoyed reading all the comments.
Karen's Jewelry Creations
kzjewelry.etsy.com

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Submitted by: Karen

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Being fairly new to jewelry making (but being of a creative nature all my life), I too have had internal battles on where to settle my prices. I recently heard an interivew with Dr. Weiman who cited an incident where a artist made a ring and sold it for $79. The person who he sold it to had a gallery in California and resold the same ring for $850!! I think "perceived value" has to be included in any pricing formula. And I think you have to have a target audience in mind. As I am trying to support myself while being caretaker for my mom (I live with her and she pays the expenses), I feel I want to attract a mid-price shopper. Let's face it, in this economy, jewelry is a luxury, impulse item. No one HAS to buy jewelry to survive. As someone else said, it's also hard to price items at a point where you know yourself you wouldn't pay. But I do take into consideration time and materials. Right now, because of my living situation, my time is my profit. So I think I can build and raise prices as time goes on. One specific thought came to mind as I listened to Dr. Weiman's interview. My first "show" was at a church yard sale. I wanted to "test the waters" and see how well my designs would go over. NOT ONE PERSON tried to bargain with my prices! Lesson taken - I'm pricing too low! I will raise them a bit before my first craft show this weekend. Great thread - I enjoyed reading all the comments. Karen's Jewelry Creations kzjewelry.etsy.com

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Fear of no sales....
by: Anonymous

As a new jewelry artist, I too am afraid to raise my price due to not getting the sale. I work with school teachers and they have (of course) encouraged me to keep my prices at a point where they can afford to buy on "impulse". I need to get over this hump, but at this time, this is my clientele. Lots of food for thought - I appreciate all the comments.
--CK

Pricing jewelry
by: Anonymous

One of the things I'm doing is making some of the jewelry out of more inexpensive materials, like copper, brass, and silver plate. If it only costs me 50 cents for components, takes less than 15 minutes to make, and I charge several dollars, then it's an affordable pair of earrings, and I still make a respectable profit. If I'm using pricier components and it takes longer, however, I'll price accordingly.