Pricing Your Jewelry Designs
Figuring out a pricing structure is difficult, but vital to your business. Combining overhead, marketing, materials, labor and other costs can start to add up. Selling yourself short doesn't contribute to your continued success. Artists are often afraid of overpricing, but remember, your talents and time are valuable.
One of the difficulties with pricing involves time. Time is money, but sometimes more time is better, and other times less time is better. If it takes you a long time at first, do your prices have to drastically change once you become more skilled at a technique? As Dr. David Weiman comments in our ''Ask the Experts'' section, "Should you pay more for a meal at a restaurant based on the amount of time it takes the chef to make it? What if you happen to have a really slow chef? Or should you pay less because a very experienced chef can make the dish in a lot less time?" Keep in mind your targeted demographic as well when putting a price on jewelry. Some niche-market buyers are willing to pay more for a unique piece, while more kitschy markets sell for less, but sell more in quantity.
Don't forget any necessary information when combining compensation and pricing by using the convenient--and customizable--guide below. This form suggests ways to keep track of material costs, labor time and more. Also, remember to add a profit for yourself since that's how you'll stay in business. Keeping record of previous pricing comes in handy for maintaining consistent costs.
Download a sample pricing cost sheet here (PDF)Remember too, communication with your potential buyers provides pertinent information. If a prospective customer says the cost is too high, ask why and get specifics. Consider the ''price-per-wear concept'' if customers are sometimes dissuaded by your prices. Divide how many times the customer wears the jewelry, by the price. Also, consult a range of beading business books for other insights into pricing, selling and more.
In the end, the price is what customers will pay, and that isn't set in stone.
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