Comments on: Jewelry Pricing Conflict

By: Andrea Christensen

Andrea Christensen — Wed, 22 Oct 2014 12:53:18 +0000

Along these lines, I make some Chan Luu style bracelets and sell them. I love the look of them and love making them. However, I was favorited by a Chinese Etsy shop this morning where they’re selling a single wrap bracelet with leather, a lovely metal button and baroque pearls for $6. I can barely buy the supplies for $6. I already felt like I should move away from these bracelets because of the Chinese competition and because I don’t have the Chan Luu name to command a higher price, but until today, most of the Chinese designs have been cheap looking. I mentioned to my husband that I didn’t want to buy and resell the bracelets because I didn’t want to support the Chinese sweat shops, but he said I already am. And you know what? He’s right. Most of the beads and findings I can buy at craft stores or online are from China. As for Nata, I agree that she shouldn’t place her items in the shop while the other woman is selling for the cost of her supplies. And 50% is a bad deal for consignment. No more than 35% for consignment, but her friend should be buying outright for wholesaling if she’s offering only 50%.

By: Kathi Ader

Kathi Ader — Tue, 21 Oct 2014 22:00:15 +0000

The market I am in is willing (for the most part) to spend a certain amount. I sell a lot of earrings so one way I make up for pricing my jewelry to meet the market is to make up the difference with earrings and rings. They take very little time time make and don’t cost much in supplies. So rather than price them at $6-12 I price them at $12-$20. So if I sell a necklace for $50 that should be priced at $60, they are usually willing to add a pair of earrings to match which makes up the difference.

By: BnB Crafts

BnB Crafts — Tue, 21 Oct 2014 21:49:26 +0000

I can understand both sides of this story. I found jewelry making completely by accident. I was forced by my health into medical retirement. I was very depressed as I feel I am way too young not to work. ( I was 38 ) I found some cute kits to make charm pins. Put them together to sell and I was off. When I first started to sell, I just wanted enough to fund my supply so that I felt I was contributing. After reading so many people’s opinion on that practice, I started using a standard pricing formula. ( thank you Rena!!) I no longer put together charm pin kits, but make all sorts of beading jewelry. I do find it hair pullingly frustrating to spend money on craft show fees and donations to be placed next to Papparazzi!!! ($5 everything, mass produced,blah blah blah) sorry, that was a bit off topic. Maybe the woman with lower prices is in the same boat I was but doesn’t realize the impact of her pricing?

By: Vicky

Vicky — Tue, 21 Oct 2014 21:21:06 +0000

nice one Jerry Penner! I wish I’d thought of it! Nata – you definitely need to find another outlet. No need to be grateful to your friend for agreeing to stock your art. Instead, I suggest she may be exploiting you. 50/50 is indeed a mean deal. Be brave and get out there and find other outlets. If you can’t face fairs or approaching stores, how about some parties in peoples’ homes? Ask a couple of neighbours perhaps? Now is a great time to start, since Christmas is creeping into people’s thoughts. ALSO – target some men – they’re desperate for ideas for their wives/girlfriends…. Are there factories near you? Maybe approach receptionists and ask if you could do a lunchtime exhibition. Sell gift bags and labels too, so the boys can see a full gift solution. Hospitals and residential homes are also possibilities for exhibitions in reception areas. Good luck x

By: Jerry Penner

Jerry Penner — Thu, 18 Sep 2014 18:05:25 +0000

Here’s a thought: Offer to outright purchase the lower-priced jewelry direct from the manufacturer, and offer it in other stores. You get free labour, the other manufacturer is happy she’s making sales, and you’ve solved the pricing race to the bottom issue.

By: Margo - AshleyAdam Jewelry

Margo - AshleyAdam Jewelry — Fri, 06 Dec 2013 08:27:19 +0000

Hi, I worked in the perfum industry and I discovered people value a product
Also by the price of the product. If the price is low, the subliminal message a potential client get is this: “cheap”. The money value you give a piece you created is what will make the piece valuable to a customer among other things. HOWEVER, a piece that is price higher have to be display acordingly. It can not be toss in a tray on the shop counter near the cashier. Beside, I think to pay a store 50% commission is too high.

By: Lisa W.

Lisa W. — Thu, 24 Oct 2013 03:07:55 +0000

I have found that if you stick to your prices, you will usually find the right customers for your work. I agree with every one else- don’t lower your prices, but gently explain that you can’t compete with someone who isn’t trying to make any money. it sounds as though you will have to find another venue. I think the owner will understand.

By: Barbara Jacquin

Barbara Jacquin — Wed, 23 Oct 2013 13:38:23 +0000

I’ve been considering increasing my prices since lots of craftspersons think there is a perceived added value when a piece is priced higher. What do you people think? Is there a strong risk of pricing yourself out of the market? Does it really increase sales to raise prices? Thanks.

By: Pam

Pam — Wed, 23 Oct 2013 11:18:40 +0000

I agree – we do need to cover our time and labor as well as materials. However, one thing I’ve learned, with the many formulas for pricing, is that bottom line, jewelry can only be priced at what the market will bear. Retail “should” be at least costx4, but it’s a moot point if it won’t sell. We don’t want to undersell, but also don’t want stuff to just sit on the table over several seasons. I do my best to avoid underselling, but slow sellers cost me in time and clutter up my inventory, so they now go to my $10 box on my table, even though some of these just cover costs. Luckily, most people love a bargain, and while browsing my goody bin, they often end up drawn to that $70 wire crochet set or something else next to the bin. It is a “draw” to my table, but doesn’t stop there. Also, at $10, people often choose more than one item. Especially at Christmas, with several office-mates needing gifts, etc. In light of this, I have also, just this weekend, opened an additional Etsy shop for JUST $10 earrings from my show box. (Always close online shops on show days, so there is no risk of double-selling!) I expect that some will view this new shop as underpriced, but these items simply did not sell at the regular prices, and rather than taking time to disassemble and remake them into something else, I feel that this is a more efficient/productive/profitable use of my time, which I never seem to have enough of.

I never lower a price until a piece has had full chance to sell at the regular price – usually a season or two – but I’d rather take less than have these items clog up my inventory. Some items are disassembled/redsigned, but my time is always short, and I’d rather start fresh with the next fun idea than get stuck on an old one. Customers love a bargain, and I like offering this. My bin items (mostly earrings) are put on plain cards, and each sealed in a ziploc, so they can be rifled through easily without constant upkeep/polishing.

Also, with awareness that everyone loves a bargain, I’ve just this weekend opened a second Etsy shop, dedicated to quality items at “affordable” prices. We’ll see how it goes. Since it’s primarily earrings, I’ve called it “The Earbobbery”. We’ll see how it goes. I’m in the process this week of getting the listings up. Some things need lower prices, but luckily, there are those other higher end items that often bring more than we plan, so I think it evens out. We always try to be fair to the marketplace and other sellers, while still getting what return we can for our time/effort/expense.

Pam

By: Nata

Nata — Tue, 22 Oct 2013 20:00:50 +0000

Sandy, THANK YOU for your support and advice.

By: Sandy

Sandy — Tue, 22 Oct 2013 16:46:34 +0000

Nata, Never, ever devalue your work. You MUST factor your labor in the price equation. I’m also a little baffled that the store owner, your friend, would have two artists with similar products in her shop with such price disparity. She should be encouraging this other woman to price correctly – right now they are both losing. While every shop is different, 50-50 is high; 60-40 is most common. If you go forward with this shop, please make sure you also have a WRITTEN agreement; this is now about BUSINESS, not friendship.
You may want to consider other shops who value the work of artisans.
Good Luck!

By: Nata

Nata — Tue, 22 Oct 2013 15:47:49 +0000

Rena, thank you so very much! You are wonderful. I treasure your advice. Yes, I’ve read your article before I decided to offer my work to the public, and really enjoyed it. But now that I am serious about this topic :), I am going to study it really close. I am hoping to post here a few pictures of my first items that I am about to offer for sale (as soon as I will take them). I am truly honored that I have been led to your newsletter, Rena. Please know how much you are appreciated and loved.
And your video about “9 things to tell to your customers” is an absolute gift to us all.
THANK YOU!

By: Rena Klingenberg

Rena Klingenberg — Sun, 20 Oct 2013 06:46:06 +0000

Thank you, Nata! 🙂 I’m glad to hear you’ve gotten started with selling your jewelry. I agree with Cyndi and Cindy – you’re right to stick to your pricing and not lower it just because another artist is underpricing her work.

I like what you said about not limiting yourself by another artist’s choices and philosophy. That’s a valuable mindset when you’re making and selling jewelry.

And if you haven’t seen this, I recently posted about Profiting from Jewelry That’s Time Consuming to Make, giving examples of ways to profit from seed bead artistry.

Wishing you all the best with selling your bead embroidery pieces, Nata. Please keep us posted on your progress!

By: Nata

Nata — Sat, 12 Oct 2013 02:39:38 +0000

Thank you, ladies. I appreciate your words.

By: Cindy Lietz, Polymer Clay Tutor

Cindy Lietz, Polymer Clay Tutor — Fri, 11 Oct 2013 00:49:52 +0000

I am going to have to agree with Cyndi L. If your jewelry is priced higher than the other artist’s then people will most likely assume that yours is better quality because it costs more. If you aren’t making sales there, they you need to find a market where the customers recognize value and are willing to pay for it.

By: Cyndi L

Cyndi L — Thu, 10 Oct 2013 12:41:35 +0000

I’m not going to tell you what I think of the person who sells her stuff at cost (it’s not fit to print), but only that I think you need to do exactly what you’ve said, and stick to your guns. It could be that this venue will not be the one for you, but please please please do not underprice your work just because she does, even if you have to find another venue!