One of the most frequently written about topics is pricing handmade jewelry. In fact, many business owners would confess that pricing is one of the hardest things. The most simple way to think about your pricing strategy is that you land on a figure that covers your costs and leaves room for profit. If your price is too high, people can be intimidated to invest. In turn, if you price low, you risk devaluing your work.
So how do you make sure that you’re correctly pricing handmade jewelry? Here are four tips to help you make this important decision.
Consider your costs
The first element of pricing is to consider the cost of the materials. When you’re done purchasing supplies from your favorite vendors for jewelry making, you’ll want to consider that price in yours. In many instances, many artists will say that they either double, or triple the price spent on materials. But there’s a second element that should be considered with your pricing, and that’s the time you spend on each design. What is your hourly rate, and how is that factored into your overall cost? This formula is just one way to begin to break down the pricing debacle.
Check your competitor’s pricing
Price matching is a great way to ensure that the number you have in mind isn’t completely off base. While it wouldn’t be wise to copy the pricing right out, it is a good way to make sure that your prices match the market and will be well received by potential buyers.
Ask buyers for their thoughts
As you interact with buyers, it could be a good job to ask them for their feedback. If you’re not comfortable asking them straight out, pay attention to body language and nonverbal body language. If several folks are interested in a necklace but leave it after seeing a price, that could be a sign that your price is off.
Consistently check and update your prices
Pricing isn’t a one-and-done situation. Rather, if you’re noticing that a product isn’t selling it may be worth adjusting the price. So, always remember to review pricing and adjust as needed.
Successfully pricing handmade jewelry
Ultimately, there may be no magic bullet here and you’ll have to change and adapt over time. What tips do you use for pricing handmade jewelry? Share your tips below in the comments.
Blog photo by Nathan Dumlao on Unsplash