How to Price Handmade Jewelry – Pricing Guide For Beginners
How to price handmade jewelry online depends on the market conditions. For example, if there are lots of sellers and buyers, the price will drop. This is especially true during economic downturns. It is better to take risks when it comes to online business but if you have good feedback, then you can still get a lot of customers.
This article will talk about the above. Your competitors also may be your reference for your pricing. So, how should price handmade pieces.
Some sellers list their prices through an overhead cost, which is the sum of money needed from the buyer’s side in overhead charges. If we want to get a better understanding, we can also include the buyer’s profit in our overhead cost calculation. As for jewelry making, the overhead cost is the total cost of the tools and the materials used in jewelry making such as the stones and the semi-precious beads. In addition, some sellers add up their labor cost on top of the above. Lastly, some sellers charge an additional fee for wrapping and some other miscellaneous fees.
Jewelry making usually has three steps. The first step is cutting the stone or bead. Second, decorating the object so that it appears unique and the design looks nice. Thirdly, assembling the item into a final product. By knowing the above information, we can get a better idea how to price handmade jewelry by considering overhead costs.
There are many jewelry artists that sell their handcrafted items through online shops. On these sites, jewelry artists post their products and advertise their rates. However, not all sellers offer reasonable pricing. These sellers have hidden charges. As a consumer, we need to be aware of these costs so we will know how to price handmade jewelry properly.
Some sellers list their jewelry prices with little or no product information. This means that the general selling price is not the true price of the handmade item. To get an accurate idea of the real value of the handmade piece, we need to take some more time to check the specifications of the handmade piece. We need to consider the material used in the making of the item, the production process, design, style, markings, the number of stones used, flaws, repayments made to the handmade piece and other factors.
It may seem easy to price the item using jewelry making price guides like those available in local stores. However, the information found in these guides may not always be correct. The cost of certain stones or bead may seem low but when you add up all the other aspects such as production cost, transportation cost, taxes and other indirect costs, you may find that the final product is actually higher than the guide price. For example, if you buy the same stone at a local store for $50, you should still have to pay the price of the packaging material as well as the overhead costs of the store’s owner. On the other hand, you can find many guides online that provide the exact pricing of handmade jewelry prices.
When buying a handmade piece, make sure you are dealing with an authentic seller. It would be better if you are buying from a family member, friend or a relative who is known to sell quality jewelry making materials. It would also be better if you are purchasing a new piece rather than an old piece that needs some refreshing. If possible, try to find a piece that is newly made by a reputed jeweler and make sure it does not come with any hidden markup.