How To Price Pieces for Sale?

[brad]

I want to price pieces for selling, in the future.  I am a bit confused on how to maximize selling price.
    I am a long time believer in supply & demand, and its impact of the value or price of anything, well most things.  I can follow prices of similar jewelry "asking price" on Etsy and Ebay, as well as at shows and in shops.
    I can figure my costs of materials and time it takes to make a piece, but that seems to have little impact on the value of a piece.
    I understand, that my name has no value (like a David Yurman) etc.
I understand that my efforts is mostly a hobby, and I enjoy making things for family, and a few friends.  And, I also realize my stuff is not of "perfection" craftsmanship.

So, for you that sell stuff, how do you calculate or figure the market and price?

Brad

[caeterle]

That's a really hard one and there are tons of articles, videos, and formulas out there on this topic. Google "jewelry pricing formula" if you haven't done so already.
I know many sellers who struggle with it, even after years. I'm one of them and I have to admit that I don't use a formula and that my prices are sometimes all over the place, often because I don't keep track of how long it takes me to make a piece. While my materials are often on the cheaper side - although some seed beads can be pretty expensive - they take me a lot longer than others who, for example, use lampwork beads which don't take as long to wire together, but are more expensive if they are artisan made.
The formula I have seen most is this one (a friend happened to quote it the other day):
"Basically it's regular supplies time three, plus artisan supplies time two, plus $20 per hour (minimum) plus $10 overhead."
If you use old stash, price it what it's worth today because that's what you would have to pay if you want to replace it.

What you definitely have to get away from right now is the hobby thought. Just because it's a hobby, that doesn't mean your effort is necessarily smaller than if you did this for a living. You can adapt your hourly rate if you think your skills are not perfect yet, but that would be the same if you had a full time business.
I'm not doing this for a living, but why should I be punished for that?
And to be honest, this thought often just hurts the non-hobbyists because buyers wonder why their prices are higher.

On the matter of the "name", I have never heard of David Yurman before. I am very happy to buy handmade whatever it is from small artisans if I like the design and workmanship, no matter if they have a name out there. I think names and brands are often vastly overrated. I'm a Steiff collector because I love their designs, especially the vintage ones, so I'm prepared to pay more, but not just because they have the famous button in ear.

In the end, you will have to find your own way.
You might take the area where you sell into consideration, how much you can make yourself and don't have to buy, the chance to get materials, etc. etc., but don't undersell yourself.

[DawninCal]

I agree with everything Cat said.

I'm also a hobbyist, but I still have material expenses and my time is just as valuable as that of a pro. Don't ever be apologetic because making jewelry is a hobby for you.

I do try to keep my material costs down by using copper (although copper has become quite expensive lately) but I also happen to prefer the look of copper over other metals as well, using stainless steel chain and making my own components such as ear wires and clasps which allows me to keep my jewelry prices down as well.

Cat's formula is basically what I use except I don't do all the percentage markups on supplies.

Name recognition means nothing to me. If I see something I like and want and it's in my price range, I buy it. These days, in our consumerism based economy, if people want something they'll buy it. You just have to figure out what it is people want which doesn't always work out for me because I tend to make what I like to make not what they want. I guess that's why I don't do this for a living!



Dawn

[brad]

Cat says, regarding a guideline to pricing pieces: "Basically it's regular supplies time three, plus artisan supplies time two, plus $20 per hour (minimum) plus $10 overhead."

I like to share with folks that can't afford too much, but like to support and enjoy the works of local crafters and artists. Trouble is, when looking at pricing, It takes as much effort to make something with copper, as it does with much costlier silver. So you lose a little within some of that guideline. That is fine with me, though. I think of my daughters and their friends, none of whom can afford expensive stuff.

Thank you for sharing that guideline. I have done no googling on the subject. But I do take a lot note on jewelry prices at local galleries, and art shows, and retail shops. Brad

[caeterle]

Brad, you can always mark down a piece if you feel like it. You can accept payment in installments. You can put an item aside if someone wants to save up for it. I've had customers to whom that made an item extra special from what they said.
I give spontaneous discounts, for example to return customers or people who I like and who I know can't afford a particular piece, but love it. I have given the friends & family discount more times than I care to tell, and my definition of friends is a very wide one at times, lol.
You can even do barters with other artisans.

If you choose to use a formula, this one or a different one, you don't lose anything, no matter if you use copper or silver as you calculate your time. A silver item will and should always be more expensive than the same item in copper. The other day a jewelry maker on Instagram asked her followers if they would like to see more gold and many of them said they would, but they wouldn't be able to afford it.

Looking at local galleries, shows, etc. you also have to remember that items might be sold in commission which means the seller also wants their share. It's a complicated topic.

Just like Dawn, I don't cater to trends. That is of course wrong if you want this to make a business, but I'm not a businesswoman and luckily have a job to pay for my groceries
I make what I like (at that moment). Lately my sales have gone down so much thanks to postage increases - I only sell online - that I have raised my prices to reflect the work I put into my items better. If I don't sell, I can also not sell with higher prices. It actually made me feel better.

Do you plan to sell only at markets or also at shows, online ....?

[brad]

I am not sure how I might sell jewelry. I have a couple boutique retail shops locally, that want my stuff. (I can't remember their commission at this time but perhaps 33%+?)
I still have my Etsy Account that I sold Cajun Triangles through, many years ago, when Etsy was fairly new. And I have bought a number of things on Etsy)
I do have a target show, locally, that our fairly prestigious and century-old local "Center for the Arts" holds annually. We go every year, and presently my jewelry would certainly be of enough quality and attractiveness when compared to many other booths in the show. (IMHO)
Though it is indoors (no tents) I would need to tool up for electronic sales.

I would not be doing to make a living, or even augmenting my income, (I am nearly retired at this point) but for enjoyment and seeing many friends and others. Brad

[caeterle]

Well, good luck for whatever you decide to do!

[brad]

Thanks for the comments. I did just realize I put this in the "social media" forum, and not the intended "business" forum. Sorry about that. Brad

[caeterle]

Oh, you are right. I moved it, no need to be sorry

[DawninCal]

Another thing to remember is that your pricing should be the same no matter the venue you are using. If you sell at a show and at Etsy, the item should be priced the same at both places. The odds of it happening are high, but you do not want a customer to buy something from you at a show only to discover that same item is priced higher at your Etsy shop or vice versa. An exception would be if your were running a sale or promotion. That's where wholesale gets tricky because you want to price high enough that you still make a profit, yet the wholesale customer needs to be able to mark the item up enough that they make a profit too.

Cat makes a good point about material cost. Using the formula mentioned above, the net result is the same because it's based on your actual cost and silver is always going to cost more than copper, but the price of your items will reflect that.

I agree with you about keeping the jewelry affordable, Brad. By rights, my prices should be higher, but I like to make my jewelry accessible to people who may not be able to spend a lot on jewelry. On the other hand, there are those who say that low prices can hurt sales because they make people wonder if something is wrong with the jewelry.

It's definitely complicated, and in the end, it's probably best to go with what makes you comfortable. I'm in the "keep it simple camp" personally. I just don't have the time or inclination to fret too much about profits margins. I'm just happy to make enough to keep myself in materials and tools without having to dip into the general household funds. But, I readily admit that I'm not running a business.



Dawn

[brad]

Dawn says: " I'm just happy to make enough to keep myself in materials and tools without having to dip into the general household funds."

If I am honest with myself, I would say: " I'm just happy to make enough to keep myself in materials and tools without having to dip into the general household funds...too much!" ;-) Brad

[caeterle]

To me, it has also been very interesting to see prices in the Facebook sales groups that I'm a member of. I have sold a few expensive pieces myself that I never thought I'd sell. On the other hands, there are some that don't go even at sale prices and comparing them to others, I have been very surprised sometimes.
I think that shows that "the customer" is an enigmatic creature

[DawninCal]

Yea, it's pretty much impossible to predict what people are going to do. I just try to worry about myself and let the chips fall where they may.

Funny, Brad, and so true!



Dawn

[Irith-Rita]

What Cat said more or less. I don't take money for the time it took me to learn how to make the item in the first time.