Does pricing your jewelry make you want to pull your hair out?
I know the feeling!
The other day, I was helping one of our mastermind designer’s with her pricing. One thing is for sure… pricing is so difficult!
Price too high and no one buys. Price too low and you lose money.
Back in the day when I was starting out, I basically just eyeballed my pieces and made up prices. I have learned a LOT since then and, these days, I would NEVER take such a lackadaisical approach.
I know from personal experience that nothing sucks more than NOT pricing your jewelry in the correct way. That’s why as my business grew, my pricing efforts became much more detailed and meticulous.
Finding the RIGHT balance between perceived value and actual price is a delicate dance! There is no right or wrong way, but there are some guidelines that should help you out.
Here are 4 Tips to Make Pricing Your Jewelry Easier…
1. Get Really Clear on COGs
One of the reasons pricing doesn’t quite end up right is because costs haven’t been properly calculated. You Cost of Goods or COGs are everything that is involved in making a piece of jewelry – including materials, labor and rep commission.
2. Find the Formula that Works Best for You
There is NO one-size-fits-all formula that works for everyone. One thing can’t be denied: you must cover your overhead expenses. The question is, how do you cover overhead costs associated with your jewelry business?
Some designers might find the “work backwards”method works best. Others might use the “included in the price” method.
Remember, each category has a different markup threshold, so fine jewelry will definitely be priced differently than, say, costume jewelry.
3. Price for Wholesale First
The biggest mistake designers make when they’re first starting out is pricing their products directly for retail without considering the wholesale price first. When their business starts to grow, they don’t understand why they aren’t making money.
Plus, when they get approached by retail stores later on, they often can’t sell because they aren’t pricing for wholesale first. The lesson? Always consider wholesale pricing before you even begin to consider pricing for retail.
4. Use Pricing Software
My life changed when I started using jewelry pricing software! In our pricing trainings, we always recommend using software because you can enter in labor costs and materials. With pricing software, pricing a piece becomes a plug-and-play event.
Trust me, software works wonders and saves so much time and frustration down the road!
At the end of the day, pricing confidently takes courage and knowledge! Use these 4 tips and price away!
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Now it’s your turn, in the comments below answer the following:
What is your biggest frustration when pricing your jewelry?
What is your biggest takeaway after reading this post?
If you are still searching for pricing software that works for you, you’re in luck! Our friends over at Craft Maker Pro have developed a new pricing software that is ideal for pricing your jewelry.
They are offering a HUGE discount on the software until March 8th, so if you’d like to check it out, go here for more details.
The post 4 Tips to Make Pricing Your Jewelry Easier appeared first on Flourish & Thrive Academy.