wholesale pricing

[Joan]

First of all you set the price, not the re-seller.  There are formulas for pricing(which I find do not always work with handcrafted work) but here goes.  One that is kicked around alot (From Wendy Rosen's "Crafting as a Business") (Materials cost +labor)times 3 = wholesales price(this allows 1/3 for cost, 1/3 for overhead, 1/3 for profit).  Wholesale price times 2 = retail price.  Retailers generally look to at least double the price, so buying wholesale at ำ to sell at ๛ would be in range.  Remember locations that can command a high price ususally have high overhead also.  Try www.Craftsmarts.com for craft business information .

[Polly]

Joan and Oldbeader said everything I would have said, and more.
Crafts Report has good articles on pricing, exhibiting at crafts shows (juried and non-), promoting your work and yourself as an artist/crafter, and other good business-related subjects.
CraftSmarts.com is new to me (a well-kept secret, like it claims to be).  I just checked our a few of the FAQ's there, and found a wealth of information for business craftspeople.

[roses4]

i have been making seaglass jewelry in the caribbean for a couple of years and selling both out of my home and on consignment. recently i was asked to supply a store on nantucket island and since they gave me no price structure i'm having a hard time. nantucket is a much better market that the one i have, i am lead to believe my things will sell for alot more there. so, if i sell an item here for โ less 30% i get ำ - this same item will probably sell in nantucket for ๛ so do i charge the ำ i would get here and make the same amount of money? this is probably very wordy, but i just need some guidelines on how to establish a wholesale price. help!

[oldbeader]

Joan has it right when she says most stores need to double their cost. Keystone pricing is what this is called.

You set the suggested retail price. You sell to the store at 1/2 of the retail price.  A few will mark it up a little more

Consignment stores work on a lower markup but you have lots more hassles with them. For consigment you set the price and the store pays you 60& or sometimes 70% of the selling price.

When you sell it yourself at shows or from your home you should price it at the same suggested retail price. Keep the perceived value up.  Because you are selling direct you might discount it 20%.  But never sell good product to the public at the same price you ask a store to buy it.  It won't work. If you can only get โ for it how can a store get 贄.  Conversely, if a store can get 贄 why are you willing to accept โ?
(Closeout or last year's style is different - discount it as much as you need to to get rid of it.)

Crafts Report is a good magazine to read. They talk about these issues from time to time. Their site is http://www.craftsreport.com

Joan is right about mark up formulas being hard to do. I often just look at my pieces and price it at what I think it looks like it is worth. I've been doing this for a while so I usually have a good idea what it will sell for. Sometimes it sells so fast I know I was too cheap.  Sometimes I use beads I've had for a long time and discover, after it sold, that I can't get them any more. But I still made money, I just can't replace the parts for the same price.  Sometmes I like a piece so much I mark it way high because I don't really want it to go away. But that's mostly for nicer one of a kind pieces. For the bread and butter I used to make for stores I made sure I  tripled (or at least doubled) my cost to cover my time and overhead. The suggested retail was 4 to 6 times my materials cost.

What's even more important is that you always have fun making and selling your jewelry.  Don't lose sight of that!

[David Robertson]

Here's another resource for pricing jewelry.  

The March 2002 issue of the "Bead Society of Greater New York Gazette" mentions an upcoming talk by David Feldman, co-owner of craft supply shop Metalliferous.  David will be discussing "How to Price Jewelry", unveiling a computer program he's written to handle all the details of this process.  Hidden costs, profit margins, and more will be covered by his program.  

For more information, call the BSGNY information line at (212) 650-1778.

[stonzandbonz]

Professional rate.  Materials X five or $60.00 an hour.  It hasn't changed since 1981.  stonzandbonz

[deerwoman]

Joan is right about mark up formulas being hard to do. I often just look at my pieces and price it at what I think it looks like it is worth. I've been doing this for a while so I usually have a good idea what it will sell for. Sometimes it sells so fast I know I was too cheap.  Sometimes I use beads I've had for a long time and discover, after it sold, that I can't get them any more. But I still made money, I just can't replace the parts for the same price.  Sometimes I like a piece so much I mark it way high because I don't really want it to go away. But that's mostly for nicer one of a kind pieces. For the bread and butter I used to make for stores I made sure I  tripled (or at least doubled) my cost to cover my time and overhead. The suggested retail was 4 to 6 times my materials cost.

This sounds exactly how I do it.  This is an old post.  Now that economic times are so much more difficult and I am having trouble selling things, I wonder if I should lower my prices.  What have you all been doing?  I've been advised for years not to do this as I use quality products and workmanship, plus what is I feel a very unique style.

[Shekina]

I have price ranges, I make necklaces worth $25;50;75;100 and up.  I live in a small rural Alaskan village that caters to tourists.  I have a rule with my local customers.  To maintain them as my work has gone up (started at $10 and now up into the hundreds)  I sell to my local clients for wholesale price.  

That has been the wisest decision that I have ever made.  I have gathered a faithful following of clients, they know that they are being pampered, and it has kept me in the front of their mind on good deals.

I realized that I did not want to always make a $10 tourist necklace, and that there was a market in our area

One lady owns a gift shop, I used to sell her $10 necklaces, I no longer do, but every year she is good for 3-6 necklaces for presents for her family and friends at Christmas, and half of her own personal jewelry is my work.

Another thing that I do is give my regular waitresses and clerks, post office employees and bank tellers gifts.  A few times a year I take my boxes of new work into their business, show them.  Sell a few necklaces, but always give them one.  

Our town has over 30 professional beaders.  I have had to work really hard to compete for the local business.  While most people were after the instant tourist dollar, I saw long term business in my neighbors.  Never regretted the sliding scale of pricing.

I have also got a few ladies that wear and sell my jewelry off their necks.  We split 50/50, we both win on this pricing.

I have found that putting a label on my necklaces has been more work than it is worth.

I have had more problem underpricing instead of overpricing.  

New to the board, blessings to all, pat

[webmistress007]

I multiply the cost of the materials by at least 2x or 3x and then $20 /hr for my time on the piece


Susie

http://www.moxiejewelry.com

[Polly]

Hi Moxie, nice little special-order card-stock earrings cards on your etsy site.  What size are they?

Since this is a discussion on pricing I should note:  With shipping, they would add another 21 cents to the cost of a pair of earrings, but presentation can be worth it.

The little single-punched tags to tie onto necklaces, etc., look like a great idea too.

I should note for readers, that we can have custom-printed earring display clipcards made, but only at a much higher quantity: around 25,000 cards for the minimum order.  Moxie's are just a 100-piece minimum order.