Articles by EJA Members
Jewelry Pricing
by Ahna V White
Have you ever admired a beautiful piece of jewelry, but wondered if it wasn't a little expensive?
The members of EJA have spent many hours talking about how to price out their jewelry. It's one of the most difficult and most important aspects of the jewelry business. On one hand we want our prices to be low so we can compete with other jewelers and the mass produced items, yet on the other hand we all spend hours of labor constructing our pieces and need to set a price that is fair for the amount of work involved. Some jewelers worry that their prices are to high, some think they are priced to low and others use a formula to price out their jewelry.
So, what's it worth? We have watched some jewelers price their items way above what we think its worth and yet it sells. And we've seen reasonable priced items sit in stores untouched. We decided we needed to figure out exactly what our costs are and what a reasonable mark up is. As you will see, there are a lot of factors to consider.
Materials: sterling silver, gold, wire, clasps, crimps, posts, rings, gem stones, cabochons, beads, chain, pmc, charms, etc.
Labor: hourly rate or priced per item, design time, construction, photography, listing and promoting.
Packaging: boxs, bubble wrap, envelopes, flyers or cards.
Overhead: listing fees, paypal fees, internet fees, phone, pge, advertising.
Equipment/Tools: pliers, cutters, torch, hammers, tanks, tumbler, dremel.
Supplies: polish, acetylene, sanding discs, acid, drill bits, flux.
Creativity: we've just got to add something for original designs.
Next time you are shopping for jewelry, consider the time, material, skill and creativity that determines the price. |