Pricing for Success | Jewellery
Regardless of your area of expertise as a maker, only being a viable business will allow you to continue being a creative working in a business you are passionate about.
However one of the most difficult and critical aspects to decide upon is the retail price of your Jewellery work.
COSTING & PRICING
There are various standard calculations that work for many makers for example ;
COST PRICE of materials/working x2 (or x3) + Your making hours charge + Miscellaneous expenses = Wholesale rate ( Your minimum selling price)
-WHOLESALE PRICE x2 (or x 3) + Vat ( if your retailer is vat registered ) + P&P (If you pay for this) = Retail price
What happens if you work out your retail price and you are pricing yourself out of the marketplace?
Have you checked your Retail price is competitive?
What happens if you work out your retail price and it seems too cheap?
An item priced too cheaply could de-value an item in the eyes of your target customer, and affect your brand image.
Research is key to making sure you are viable and competitive and reverse pricing can help you decide if your pricing strategy will work for you.
REVERSE PRICING
Following your research decide upon a retail price for your item eg What is the maximum amount of money you consider someone would be prepared to pay for a piece in the sales arena of your choice. This may mean selecting a price to be competitive to similar products on sale.
- Your customer has no concern over the cost of your making/ how you earn your living, they may like your story and this will to some extent be persuasive and add a little more value (£) to your piece but only if you are a recognisable brand name.
- Customers see an item, like it and decide to buy or not.
Decide upon your top retail price, deduct the vat, deduct any commission payable, deduct all of your attributed costs of making
= The pure profit this piece will earn you per sale.
What happens if this pure profit number is not enough or there is a minus figure?
Consider, how can this piece be made more cheaply to increase the profit?
- Any other methods or techniques to reduce making time and cost ?
- Is outsourcing a viable option for techniques where another person's expertise can reduce the making time?
- Can a simpler design with the same ethos make a difference and turn this piece in to a commercial line?
- Could using CAD Design and casting repeats create a more viable piece?
If none of these options works it means for this piece, you have beautiful exhibition or hero piece that you can use to promote your brand but this piece will not make you money.
- Hero pieces are still important, they prove your expertise.
- Wear these.
Reverse pricing is a very useful exercise that can help you decide if one of your designs will fit profitably in a particular sales arena.
ACCEPTANCE
Some designs ARE commercial pieces
Some design have the potential to BECOME commercial pieces
Some designs can only be HERO pieces, use these to showcase your expertise as Maker.
Costing & Pricing | Additional Help
If you would like some individual help with costing and pricing and/or advice about the potential of a jewellery design then please contact me to ask about a 2.5 hour consultancy with an experienced commercial jeweller.
Consultancy takes place in Birmingham's Jewellery Quarter
Email bespoketraining@virginmedia.com
About the author
Dawn Meaden-Johnson has over 30 years’ experience working in customer facing Creative and Commercial Industries and in Further Education, including at Birmingham City University School of Jewellery for 10 years, during which time she has worked extensively with national and international clients.
Dawn is a Jewellery training consultant , Jeweller and founder of The Bespoke Jewellery Training Company which provides national private tuition courses for those working in the Jewellery Industry such as :Fine Techniques, CAD Design, Gemmology, History and Business skills. Recently introducing courses for International students, absolute beginner Experience Days and courses purely for Jewellery enthusiasts.
A Silversmith graduate of Birmingham City University School of Jewellery, Dawn still creates jewellery under the brand Dawnstorm.co.uk which specialises in limited edition anodised aluminium jewellery combined with silver.
