Pricing Your Work
Recently, we offered a MINI Workshop all about pricing and we thought we’d share some of the highlights with you. From independent studio jewelers to big named stores, everyone has a different method to pricing their work. It can be confusing, frustrating, and sometimes emotionally taxing. We hope this blog post will help you build confidence and develop your own approach to pricing.
Do not underprice your work!
Setting the right prices for your work is crucial.
It ensures that you are adequately compensated for your efforts, allowing you to cover not just the cost of labor and materials but also the often-overlooked expenses of running a business.
Possibly even more important is that if you undersell your work, you will also devalue the work of your fellow craftspeople.
You might be surprised by how expensive your work will end up being priced, but remember, YOU are not your client.
There’s more than one way to skin a cat.
Often jewelers will vary their price and formula based on the type of piece it is. Here are a few things to consider:
Do you use the same formula for Base Metal VS Silver VS Gold / Platnium?
Because silver and base metal materials are so much less expensive than gold or plantnium, it might make sense to increase your markup percentage to ensure a good profit margin.
There is a difference in Production Jewelry VS Heirloom/Custom Jewelry?
Maybe the formula is that you use to calculate the price is the same, but the hourly rate is higher for custom.
Do you need a non-refundable design/cad/modeling/prototyping/sourcing fee?
Should you include a Metal Recycling/Processing fee for Heirloom Materials?
Should you include a Stone removal fee for Heirloom Materials?
One Price to Rule Them ALL -
Retail VS Consignment VS Wholesale…Pricing Consistency
Regardless your formula or process for determining a final value for your work, your calculations need to take into account how your jewelry is sold.
If you are selling/wholesaling your work to a store for them to then own, sell, and market to the consumer. Then they will expect to pay a wholesale price to purchase your piece. Sometimes this price can be contingent on volume, but it is typically at least half the retail price. Be sure that you are making a profit even at this lower price point.
If you are loaning/consigning your work to a store for them to sell and market to the consumer, the store will take a percentage of the sale of the work when it is sold. This percentage can range from 40% store / 60% artist to more typically 50% / 50%. Like in the previous example it is important to ensure that you are making a profit.
If you are selling your work direct to consumer then you need to price your work at the full retail price. When you sell directly to consumers YOU become the retailer and that “extra cash” pays for whatever leg work was required to find/be in front of those customers (i.e. art fair fees, website costs, online marketing, packaging etc.)
Track your time! allllllll of it, not just the time spent at the bench!
Production
Track your design/prototyping time and either spread it over several batches OR charge a lower hourly rate for the time it takes to make the first one and as you speed up you’ll get paid more.
Time yourself fabricating one piece AND batching several at a time. If you price based on batching, ALWAYS make in batches. Otherwise, you’re losing money when you make just one.
Custom/One of a Kind Pieces
Custom should cost more because of the extra time required to make something for the first time plus all of the extra communication required. Try to account for this during the estimation process.
Customization (i.e. adding a different stone, changing up materials, modifying current designs slightly) Make sure to add extra fabrication time if modifying a production piece and making it a “one of a kind”.
NOTE: You may not end up billing for ALL of you time, but it is important to know what you are literally giving away for free.
Hourly Rate of labor
Your hourly rate is up to you, but when deciding what to charge there are multiple factors to consider. Whatever you decide, your rate will likely land somewhere between $15-$75/hr. Here are a few things to take into account when you are figuring out your rate:
Are you paying a production assistant to make your work? Do you need to pass through their labor costs?
Is that person specialized or just general fabrication?
Are you a beginner?
While you are learning and things take FOREVER to make, it might make sense to dramatically reduce your hourly rate
If you are creating jewelry that doesn’t require any specialized skills, you may want to keep the hourly rate low.
Are you advanced/experienced in your skills?
Working quickly and efficiently means you can increase your hourly rate.
Creating pieces with high quality craftsmanship should be billed at a higher rate per hour.
Using specialty skills that have been developed with years of experience will absolutely mean that you should charge a higher hourly rate.
comps
Once you have a number you can do a bit of research to see if it is comparable to other artists/makers that have similar skills and creations. Finding comparable work can be a great way to gut check your prices and the validity of your formula. A good comp is one that is sold at an established and respected retailer/gallery. ETSY IS NOT a good place for comps unless you can clearly tell that the work is handmade in exactly the same materials. Following are a list of respected retailers you can check for comps.
Artisan Bench - https://www.artisansbench.com/collections/handmade-jewelry
Artful Home - https://www.artfulhome.com/navigate/jewelry
Pistachio Jewelry - https://www.pistachiosonline.com/
Meeka Fine Jewelry - https://www.meekajewelry.com/
The Gold Hammer - https://thegoldhammershop.com/
Ombre Gallery - https://www.ombregallery.com/shop
Metal Museum - https://www.metalmuseum.org/online-store/Jewelry-Accessories-c52949067
Balefire Goods - https://balefiregoods.com/collections/all-1
In conclusion, pricing your work as a jeweler is a complex yet essential part of your business. It requires a careful balance of covering costs, ensuring profitability, and valuing your unique craftsmanship. By considering factors like material costs, production methods, hourly rates, and the type of sale—whether retail, consignment, or wholesale—you can develop a pricing strategy that works for you. Remember, the right price not only compensates you fairly but also respects the broader community of artisans.
