I am currentlselling to or through a jewelry store

[Jster]

I am currently selling my jewelry at a non-jewelry shop owned by a friend for what I’m pretty certain is a fantastic deal.

I have recently been told of a small area jewelry store that is always looking for ‘different’ pieces of jewelry to sell and that my designs would be perfect.  Before I head out to talk to them, I’d like to get an idea about what pricing might be like in that environment.

Do most stores like this sell your designs on consignment or buy the pieces from you?  If they go the consignment route, do they take a percentage of the sale and you are responsible for determining the sales price?  If so, what would be a normal percentage that they would take?  Or do they ask you how much you must have for the piece and then they determine how much they will add?  Again, what kind of markup would be ‘normal’?  Do stores like this discuss the markup values with their suppliers?

I want to get as much money as possible for my jewelry (of course!'>, but I don’t want to price it so high that after they have added their markup, it’s too high to sell well.  Therefore, I’m trying to get some information on what values stores use for ‘markup’ in this kind of situation.  If I can determine what the end price to the consumer will be, I think I can determine what I should charge or what I would ‘take’ for my designs.

Any information about selling to or through a retailer like this would be greatly appreciated.  I’d like to have enough facts so that I can make decisions about pricing/cost the first time that I talk with them.

J  
 '>

[Luann Udell]

Most stores, when dealing with a brand new vendor (new to them and/or the vendor new to the biz) will want to try consignment first.  They may want to test your designs with their customers before committing to wholesaling.  And they may want to see how well your work holds up and how professional you are to deal with.  You want to see how professional they are in dealing with you, and whether you feel their store is the best place for your work.  So consignment can be a great way to "test the waters" for both parties.

But you don't have to consign if you don't want to.  That decision is up to you.  Some craftspeople do not want to ever consign, some only want to consign (that extra 10% is important to them), and some do a mix, depending on the product (high end?  One of a kind?) and the circumstances (a seasonal store? A special exhibit?  A non-profit operation with strained cash flow?)  You decide how you want to run your business, and you decide what combination of w/s-consignment you want to do.

Standard consignment is 40%-store, 60% artist, but some will do 50/50.  50/50 is also standard wholesale, although some stores will mark up your work a little over 2x if their expenses are unusually high--very high rent in a desirable retail location, for example.)  In my humble experience, most stores that stay in business don't take less than 40% from a sale--running a business on a 40% bottom line is tough enough!

Some stores are good with newbies, some can be tough.  I usually advise newbies to ask other artists for advice on which stores are good to work with--good record keeping, reliable payment schedules, easy to talk to, good advice, etc.  

A store that is used to dealing with newbies will be happy to assist you with setting prices.  A common mistake, though, is to determine a retail price then "settle" for half or 60% of that for your price.  You may end up not getting enough money to reflect the time and materials you've invested in your work.  

Also, if you establish a "wholesale" price for your work that you are happy with, then it really doesn't matter how much the store marks it up (if they can sell it at that price) as long as you are getting the $$ you need to get.  

Pricing is an art, not a science.  You must consider price of materials, your design and production time, your overhead (your cost of doing business, such as rent for your studio space, utilities, marketing costs, etc., etc.) and a profit margin.  On the other hand, just because it takes you a long, long time to make something doesn't mean you will get paid a lot more money.  Maybe you are just slow!     The store should be able to advise you about what work similar to yours is selling for in your area.  Don't worry too much if the prices seem low--you can always raise them once a demand is created for your work.

The store is just as entitled to their percentage, because they are providing an established storefront, a reputation, trained sales staff, their overhead, advertising, etc., etc. and a profit, too.

I've rarely tried to "bluff" my way through any of these transactions.  My tactic has been to be open and honest about what I know, what I don't know, and to treat the entire process as a learning experience.  Sometimes what I learn is that they may not be a store I want to do business with  '>  but even that is valuable experience.  In most cases, as long as you are open to suggestions (they do have experience selling jewelry, after all) and willing to learn, you will do fine.

And remember, nothing is ever written in stone.  If you try their arrangement and it doesn't work out, you can either ask for a different arrangement or work with a different store.  

Try www.craftsmarts.com for more reading on selling handcraft, and check out Wendy Rosen's book, Crafting as a Business, for more advice and information on selling your jewelry.  For business advice in general, this forum is great!  You can also check out the discussion forums at www.craftsreport.com and www.americancrafts.com.  
Hope this helps, and good luck with your first account!
Luann Udell