Reviving the Pricing Info

[gbobmi]

I'm reviving the age old pricing stuff. There was so much useful info on the old forum and I feel at a disadvantage, now that it's gone forever.

I've tried various different pricing formulas and I tried using Rena Klingenburg's pricing formula for my last show. I think it's way too high. 4 x materials + hourly wage x 10% of that total = your price. I found that my pieces were extremely high priced. I tried 3 x, instead of 4 x and that was a *little* more reasonable (in my mind). I'm just not sure.

What do y'all do? What do you think?

[admin]

It seems to me that there really isn't one particular formula that works for everything. The formula I use most often is 3x materials + labor + 10% = price...but I often use variations. Sometimes I use a different hourly rate based on the skill level of the technique I am using...if it is something simple I may use $12/hr, something that requires more skills at $15/hr, something more advance at $18 -$20/hr. I have been using Eni Oken's spreadsheet/calculator. www.enioken.com/jewelry/pricecalc.html It provides for using different scenarios and suggests optimum prices...I like it alot.

Another thing is if I need to price something that used a technique that I am not really proficient at yet I will reduce the actual time spent making it to maybe 30% less time to account for the learning curve.

[MmeMagpie]

I generally go 3x on materials. 2.5x on pricey ones. The bottom line for me is to be able to halve the retail price and still make money (so I can wholesale).

I don't remember how I figured up $50/hr for labor, but I'm happy with it, as I'm pretty fast at most of the things that I do. Wholesale pares that back to $25 which is fine, as I save much time in mass production.

[DawninCal]

My goal is to pay myself $20 per hour plus materials and mark-up of those materials and then round up to the nearest number that ends in a 0 or a 5.

For each 15 minute increment that goes over, I go to the next 15 minutes. So, let's say a pair of simple earrings takes me 25 minutes. I figure 30 minutes which is $10, plus material and mark-up might take them to $13. Then round up to the next number with a 0 or a 5 and those earrings are going to be priced at $15.

If I mess up, I don't count that time in my pricing. I figure it's not the customer's problem if I make a mistake or didn't take something into account that I should have.

Not terribly scientific, but it works for me!



Dawn

[gbobmi]

Good info. Thanks! Keep 'em coming...

[violetmoonnl]

I use these 2 methods

cost materials - hourly wage - 30% for use of electra and tools - 20% for when the taxes come around the corner.

or

4 times the material + hourly wage.

Depends on what price I'm comfortable with and of course what the technique was that I used.

[j3jewelry]

Recently, I've been doing this: 2x cost of materials + hourly wage + 20% profit. I will adjust as necessary. I've been getting repair requests of late, and usually have a flat fee for that.

It seems low compared to others' methods listed here, but I do not create from scratch with metals...I mostly string things up/together. On the other side of that, I do the beadweaving. In beadweaving the cost of materials (for me so far) are pretty low, but that hourly wage racks up the price pretty quickly because beadweaving is time consuming.

Thanks for reviving this topic, it reinforces information I've learned but is bringing in new information as well. And reminds me to always tweak until the right fit is found.

[Gail]

Good thread to restore.

I use "Jewelry Designer manager" from Bejeweled, but you still need to decide your labor and percentages figures for the software to save.

I use $60 an hour which includes overhead costs for heat, electric, etc. but with that labor figure I can only use a 1.8 x materials to end up with a fair market price. The program is easy to manipulate and change costs though, so it works out fine.