Pricing Jewelry: Customers’ Mental Price Limits (Video)
Jewelry and Coffee with Rena
Video Episode 25
by Rena Klingenberg.
Here’s a jewelry pricing experiment that may be very profitable for you:
Before you start experimenting with your prices, make sure you’re starting out with profitable pricing. See my Jewelry Pricing Formula for details.
Transcript of This Video:
When we’re selling our jewelry we’re always concerned about our pricing.
Are we pricing our work high enough? Are we pricing it low enough? Are we pricing it profitably enough?
Well, one thing to consider is your customer’s internal pricing limits.
We all kind of have limits where we’re comfortable spending this much – but then you get a little bit over that and it feels uncomfortable.
And I’ve discovered in selling jewelry that there are basic price limits in people’s minds:
$5, $10, $20, $50, $100, $150, and $200.
And at each of those steps, people are willing to spend up to a certain amount, and then when they reach that point (for example, $100) that’s a mental price barrier that they have to cross before they’re willing to spend more.
But one thing I discovered is that you can really use these internal price barriers to price your jewelry more profitably.
Although I’ve probably sold the majority of my jewelry in the $40 to $49 range (that’s a really popular price range for the types of items I’ve mainly created and sold), I made this discovery:
Once you get to the $50 point, many people are just as willing to buy the same item for $99 as for $50.
So for example, with a pendant that you’d price at $50 or $52 – experiment with that.
See what happens if you bump the price up to $60, $75, $80.
Keep testing and see at what level people are still willing to buy that piece.
It’s definitely to your advantage to earn as much as you can on each piece you sell, because over the long run you’ll probably make more money by selling fewer pieces at higher prices, than by selling a whole bunch of pieces at lower prices.
And it’s a lot less work for you. It gives you a lot more time and energy for selling your work.
I’d love to hear whether you’ve experimented with these internal price barriers that your customers have – and if so, what happened?
Thanks for stopping in today! I’ll see you soon.
After watching this video, you may want to hop over to my related video, Jewelry Artists’ Mental Money Barriers – to see the other side of this issue.
The Jewelry Rena’s Wearing
in This Video:
Lemon Lime Jewelry Set: Carved serpentine pendant, Czech glass beads, copper, sterling silver. By Rena Klingenberg.