It is difficult for the customer to personally evaluate the worth of any stone, as it takes an expert to differentiate between a nearly flawless stone and one with slight imperfections that can't be seen with the naked eye. Internet sites such Blue Nile, Miadora and Diamond don't have the overhead of brick and mortar stores, so the can undersell diamonds and still be profitable. Some retailers will match the online store's prices to win the loyalty of a customer, hoping she returns for further jewelry purchases.
Colored stones typically have higher margins than diamonds -- 48 percent or more for nearly three-quarters of the retailers. It's difficult for the customer to compare prices of jewelry pieces given that the quality, type, color and size of the stones vary so much. For example, a bracelet of blue topaz is less expensive than blue sapphires or blue tourmaline, although all look somewhat similar. And red stones are not just rubies; this color class includes garnets, spinels and tourmaline, while green stones go beyond emerald and include peridots, sapphires and tsavorite garnet.
Another reason for the higher margins is that colored stones can be bought wholesale at gem shows, unlike diamonds. When I first started my business I was afraid to ask for too much for my work. Over time I began to understand the value of my talents and hard work and slowly I started to raise my prices. A funny thing happened Once you establish the price that is right for you and your product you can divide that figure in half to arrive at the wholesale price that you will charge to stores.
After you set the retail price if you find that half is really too little for wholesale then you are setting your retail prices too low on the scale. It would be great if there was a perfect formula for pricing jewelry that you could enter into a computer and print out but, putting a price on your individual pieces is a bit of a complex process. For this reason I recommend that the formula is only a guideline and that you re-evaluate each price based on the following criteria:.
When you have used the basic formula for pricing your work you must look at it from a different angle and that is the perceived value of each individual piece.
This involves two things. First, you will step back and look at your item and get a feel for how the price is in the market. There will be times when you use the high end of the pricing scale and the price will still seem too low. Second, you will look at your item and blurt out a price that is strictly from your gut feeling. If you feel unsure, it does not hurt to get an objective opinion from someone whose judgment you trust. Sometimes you will just have a gut feeling about what a price should be.
Often, when pricing jewelry, I will do so by instincts alone. After many years I generally know what a piece should sell for. I have a good sense of both materials and time involved without using a formula. However, there are times when I am very strict with my formula especially when it comes to developing new techniques and pricing jewelry for larger scale wholesale. A number of years ago I prepared many samples for the shopping channel. I put together a binder for myself with scans of my pieces.
I made detailed notes on labour, plating, material costs as well as a price comparison chart for various suppliers of like items. Being diligent about the jewelry pricing formula for each design allowed me more control over how much room I had for price negotiation on my pieces. Because I was going to be producing in large quantities I made sure that what I was offering to the shopping channel contained materials that I could easily get from more than one supplier.
I then set my prices for the high end on supplies. That way if I couldn't find the materials at the cheapest supplier on my chart I was covered both for availability and cost. When pricing jewelry there will be times when you will make much more on one item and and by the same token For example my best selling earrings for the past twenty years are extremely easy to make and economical in terms of material cost. I find it amazing to say that one pair of earrings can consistently be a winner for that many years.
They are crystal earrings with filigree detailing and I offer them in about fifteen colors. I often joke that I will set up a booth and offer these earrings only I also have my prized necklace that I designed as the necklace of my dreams. It is a bit tedious to make and it involves a fair bit of material.
I could sell circles around this necklace with my best selling earrings as they are so simple to make in comparison but I love the necklace. The necklace is not only special to me but, occasionally someone will fall in love with it.
While I don't charge as much for my labour on the necklace I am still rewarded for my efforts both monetarily and in spirit. Although the necklace is not overpriced it is a nice add on to a show when I do sell one and it adds to the overall allure of my booth.
It is one of my show stopper pieces and shows my skill in terms of design. Overall there is give and take in your pricing structure. Some pieces may be your bread and butter while others may be your passion.
The general price structure will all balance out provided you do not under sell yourself on any given item. I hope that you will find it helpful in arriving at the perfect prices for your works of art. Privacy policy terms of use. Of course, these three points are mainly subjective, and require a bit of experience with your intended market. Your 30 minutes of labor equals half an hour. Now we can adjust that retail price up a little or a lot — depending on the uniqueness and overall outcome of the necklace, how easily we could replace the components if we wanted to, and how much our intended market would be willing to pay.
When you sell your jewelry, you need to be paid for the time, effort and craftsmanship you put into all the various aspects of your jewelry business, plus the cost of all of your overhead expenses, if you want to stay in business. Your overhead expenses include things like your jewelry business website fees, jewelry displays, tools, insurance, merchant account fees for accepting credit cards, receipt books, digital camera and its batteries for photographing your work, jewelry magazines, workshops, etc.
So wholesale pricing usually requires the shop owner to purchase a minimum quantity of 6, 10, 12, or however many items at a time. When you make and sell multiples of an item, your manufacturing and selling costs are lower, and you make up for the smaller per-item profit by selling more items at a time.
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