How to Price Your Handcrafted Jewelry : Page 2 of 2
How to Price Your Handcrafted Jewelry
Setting Retail Prices
The second stage must absorb the cost of selling the product, regardless of the means of selling you use. Even though you may decide to start out selling your work strictly retail through craft shows, you should still figure your wholesale price, as your selling costs will be added to this price to arrive at a retail price for your products. Normally your retail price is double your whole sale price.
Many jewelry designers say they can't afford to wholesale their jewelry that is, they can't give a discount off their retail price to a shop or gallery that wants to purchase in quantity for resale. This is because these jewelry designers are selling their products retail at the first pricing stage, the wholesale level, and therefore have not adequately considered the second set of selling costs.
Selling costs are what it actually costs you to make a sale. Your selling costs are any money that you must pay in order to get your product to the final customer.
Following are some of the easily identifiable costs of selling that contribute to your selling costs:
Depending on how you decide to sell your work, you might find that you are spending as much time or more on selling your jewelry as you are in making them. Actually this is quite normal and to be expected, especially at first. You should soon become more knowledgeable about selling and get your selling costs in line with what your retail price allows.
Even if you are only a part-time jewelry designer, you must bear in mind that the prices you charge must reflect an income from which you could earn a living.
Right now you may be selling handmade jewelry either for the fun of it or for only a bit of extra income. However, in the future if you do decide to make jewelry as a full time business you will realize that you are not making sufficient profit from the low prices you have been charging and then it will be too difficult to suddenly raise your prices high enough to make a living from your jewelry designs. Therefore, fixing a reasonable and fair price early in your home jewelry business is of extreme importance, especially if you are to make your business successful. •
© 2008 by Gloria-Jean Browne. All rights reserved.
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