Nicky from USA asks,
"Hi Preston I hope you can help. I've been reading the Q & A's on here & they're giving all kinds of prices on what & how to charge for the jewelry. So what's the REAL way to price things, as I am having a horrible time trying to figure it out? Thank you."
There are lots of fancy formulas, and I could give you a few, but frankly my formula at my show or where I sell in my part of the country will be very different if you're selling in San Francisco, Las Vegas, etc.
You need to create a perfect formula for your area, for your work and for your clients in your selling arena and this is how you do it.
7 STEPS FOR CREATING A PRICING FORMULA
#1. Perfect whatever it is you're selling. Well made jewelry will sell and poorly constructed jewelry can't be given away. If you are making small bead or snap set rings like the ones in my free DVD, keep making them until they're perfect. It's easy to do.
#2. Remember the greedy hog gets the slop! Start low and at a price you know they will sell at. In other words, if you personally feel that they should sell for $15 then start at $12 and see how they do.
#3. If they are selling like hot cakes go up $1 but all the while you are improving your display, colors, info, selection, booth etc. You never want to stop doing this no matter if you are doing it for 10 years there is always room for improvement
#4. OK, your ring is selling for $13 now and they're flying out the window, one after the other. Go up another $1. But only $1; you have to do this slowly or it can cost you a lot of money in lost sales. Remember: improvement and getting more money for your work is more evolutionary than revolutionary.
#5. Well, you hit $22 and things really start to slow down a bit. OK, go back to the price they were selling at and maybe its $20 or $18, only you know that and you should be the only one that does know it (or next time you do a show you might have 6 other people selling similar products $1 below your price). Your prices are your trade secrets and those secrets are only shared with your customers or students if you are teaching.
#6. TIP!!!___Improve the design and raise the price! That's right! You don't have to be stuck with the same low price for items all the time. Let me give you an idea of what I'm talking about. I see name benders all over America making name jewelry and name bracelets for peanuts. Yes, peanuts! Well, I want you to look at the way I make my name bracelets, and look closely. All I do is make the same name bracelet that most name benders sell for about $25 to $30, then I add an extra sturdy piece of wire over and under the same design. It looks much more sophisticated because of it and take a look at the price!! That's right! $97 and no, I don't sell them all day but enough to keep me busy. CAUTION!!! Don't try to get the same money unless you have got that bracelet down to a fine art because, at that price, that's what people want! Here is the bracelet on my name site:
http://wirenamejewelry.com/bracelets.php
So, it's up to you on how many you want to make and at what price, but don't get into a rut thinking you have to sell them for what the rest of the world sells them for. However, to get that extra $$$ you have to make your designs more interesting.
#7. Making jewelry and pricing is is only two parts out of a three part equation. The third part is the easiest to learn but most people would rather wing it and their revenue shows it. HOW TO SELL IT---What words to use, how to qualify your customer, hot button words, the emotions that come into play when anyone buys jewelry, how to accept rejection and still make the sale. Knowing how to sell and what to say is as important as making the jewelry itself.
Preston Reuther
Master Wire Sculptor
Helpful links:
Jewelry Maker's FREE Photo Album
Beads
