If you are indulged in the business of jewelry making, then the most important part is pricing. This is important because it will determine the quality of your work and will show that your pricing is able to give you profit or not. One can follow any of the formulas for the pricing of the jewelry they are manufacturing. One should take care of the fact that the pricing should not look different from the market and it should be similar.
Here are some of the ways which can be used to price your handmade jewelry and make it ready to be sold in the market.
Calculating your initial price
Those who are manufacturing jewelry must keep a recipe-book with them so that they can note down the price of the things they are using for the making of the jewelry. You need to be more meticulous in terms of calculating expenses. Keep receipts of the items you are purchasing and try to purchase it from wholesale.
One should record the time they are spending on each design. This will help in calculating the labor cost. You will charge differently for 30 minutes of work then 4 hours of work for each design.
If you want to determine the labor cost, divide the spent time with 15 minutes segment. Pay according to this module and make sure that this is not the fixed salary. This is just for the time you have spent in designing the jewelry. You can pay by taking the experience in your concern.
Finally, you can calculate the wholesale price. Wholesale price is the lower price that you offer to retailers. Add the initial price of material, packing costs, and material costs and then multiply those by 10%. Then add the labor cost and then multiply it with the profit margin.
Calculate the retail price as the retail price is the larger price. This sort of exchange is of more labor and price intensive on your part and hence you can increase your retail price with this.
Adjusting to the market
If you are going to decrease the price of your jewelry in the market, then the buyers might think that the product you are selling is not of much worth. This will aid the competitors to rise and you will struggle in the business. Never sell below the price of supplies.
Research is one of the main things which you are supposed to do. Ask any of the experienced and professional designers about the current market rate of the product. Check the price of the comparable products in the market and then fix a reasonable price for your jewelry.
There is no need to decrease the price of your design if it is not selling as expected. You can change the design of the jewelry and this can reduce material and labor costs. Check the materials you are purchasing for the manufacturing of the jewelry as they might be too expensive to give you profit.
You can increase the price of your design if it is doing good in the market. You need to design more so that customers can continue to buy. You should never compromise with the quality of the product as this is very much important for the selling of the product. You can attract customers with cheap products and drag them gradually in the high market.
Hence, these are the following ways in which one can price the handmade jewelry and can earn the profit. One should be highly careful while pricing the jewelry as a single mistake can put them in a big loss.