Topics: Business/Pricing

Q.
I am new to the jewelry making business and have been interested in a business of my own since my work related accident, which forced me into early retirement. I was doing a web search for something that would help in my fixed income and I came across Fire Mountain Gems and Beads and decided that this would be something that I could do from my home. I am interested in both making and buying the pre-made jewelry. I would like to know something about the price point system, regarding the pre-made jewelry. If I buy the pre-made pieces of jewelry, what sort of price range would be the best? For example, if I buy a pre-made necklace what would my price point be? Say if the pre-made pieces of jewelry at wholesale cost would be $5.34. Would I multiply the wholesale cost by 2, 3, 4 time of the cost or what percent would I mark up the necklace? If I decide to sell this necklace with a bracelet and earrings, what would the markup be on this set? Also, if I buy a set of 6 of the same kind that cost $7.42 for the set of 6 how would I break this down to each individual piece? I will be setting up at the flea market and craft shows, and making up my website and ebay store. Thank you,
- Mike
A.
It sounds like a meeting with an accountant might be a good idea before you go into business for yourself. That's because what you charge for the jewelry has to provide enough profit to cover a variety of expenses associated with being in business, along with something for you! The accountant can help you learn more about what those expenses are. If you don't include all of your overhead costs into your pricing, no formula will work. Once you have a sense of what it costs to run the business, you can determine profitable pricing from there. Good luck! - Dr. David Weiman
Dr. David Weiman is a respected expert in the field of marketing and selling handcrafted jewelry and a well-read contributor to Fire Mountain Gems and Beads "Ask the Experts." He is the author of Introduction to Marketing and Selling Jewelry, The Jewelry Selling Answer Book and The 5 Keys to Selling Handcrafted Jewelry. A free newsletter on selling handmade jewelry is available at his website: www.marketingjewelry.com.

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