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Posts Tagged ‘selling jewelry’

PRICING STRATEGIES

Posted by learntobead on August 1, 2014

PRICING STRATEGIES

Question:  How do you go about figuring how to price your jewelry?

 

template-pic1-whats-the-price

I teach a class on how to best price your jewelry, and I have posted a video tutorial on the CraftArtEdu.com website.
http://craftartedu.com/warren-feld-pricing-and-selling-your-jewelry-with-warren-feld

 

There are different kinds of pricing strategies.

(1) One type of pricing strategy is called “Keystoning”.

Keystoning is where you multiply your costs by 2, to arrive at your price.

 

If your costs were $10.00, then your price would be $20.00.

In the Jewelry Industry, you will hear a lot about Triple Keystoning.

Here you multiply your costs by 3. To arrive at your price.

So, if your costs were $10.00, then your price would be $30.00.

 

Keystoning works well if you are a boutique or gift store buying finished jewelry.    You would double (keystone) or triple (triple keystone) the costs of each finished piece.    Keystoning, as a pricing strategy, works well when you are dealing with finished goods.    The price is simply a multiple of the cost of the Parts.  Keystoning assumes that Labor and Overhead costs have already been factored into the cost of the jewelry.

Keystoning is a little more awkward to use, when dealing with manufacturing goods, like most jewelry designers do.    Keystoning tends to over-account for the cost of the Parts, but under-account for the costs of your Labor.

Keystoning works well for jewelry stores.    Keystoning does not work as well for jewelry designers.

 

 

(2) A second type of pricing strategy is called “What The Market Will Bear”

Here, based on your gut feelings, you would set the price at the highest price you think someone might pay for your piece.

You will see this strategy employed in a lot of tourist areas.   Businesses in tourist areas usually pay very high rental rates.   They are often dependent on making their money in a very defined seasonal timeframe.   They assume they will they will never see these customers again.

What happens with a What-The-Market-Will-Bear strategy…

At the point of sale, the customer goes away happy and the business goes away happy.   However, when the customer goes home,  and they show their purchase to their friends or family, or shop around, they begin to realize they overpaid.    So, over the medium and long term, the customer is no longer happy.   An unhappy customer can spread bad word of mouth.   While that particular customer may never revisit that tourist area.   They might convince their friends and families, who may plan a visit, to avoid that particular shop.

 

 

(3) The third type of strategy is called “Fair Value”.

This is what I teach in my class, and is detailed in my video tutorial. ‘.

A Fair Price is set, using a formula.   This formula requires that the artist manage all the types of costs she or he confronts, when setting a price.   These costs include,

COST OF PARTS (P)
LABOR (L)
OVERHEAD (O)

Overhead costs include things like rent, electricity, wear and tear on tools and equipment, telephone, travel – basically everything else associated with making and selling your jewelry.

 

The basic formula:

MINIMUM FAIR PRICE = (2 times P) + L + O
MAXIMUM FAIR PRICE = 1.5 times the Minimum Fair Price
You gather cost information on your Parts and your Labor.    You estimate the Overhead costs based on percentage of your Labor and Parts costs.
This gives you a range of fair prices from which to choose.

With a Fair Price, you may not get the highest amount you possibly can get, but you will get an amount that more than covers your costs, and leaves some money left over to spend on yourself, or re-invest in your business.

With a Fair Price, when you sell that piece of jewelry, both you and your customer go away happy.

And both of you stay happy.

 

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Promotional Discount – 4/24 and 4/25 only – Business of Craft Video Tutorials

Posted by learntobead on April 25, 2014

PROMOTIONAL DISCOUNT
Two Business of Craft Tutorials
Thurs 4/24 and Fri 4/25 only

I enjoy teaching about the business of craft.     Over the past 25 years, I’ve learned many insights about creating, marketing and selling jewelry.     Two of my video tutorials – “SO YOU WANT TO DO CRAFT SHOWS” and “PRICING AND SELLING YOUR JEWELRY” are available on the http://www.CraftArtEdu.com website.

 

CraftArtEdu.com is running a two-day – THURS, 4/24 and FRI, 4/25 only — special discount on these video tutorials, which you might take advantage of.  I’ve appended their promotional announcement below.

 

Warren

 

 

 

Ah, summer. It’s a time for county fairs, music and craft festivals! If you’ve ever considered selling your jewelry or other handmade items in local shows and venues, you know it’s a significant investment of both your time and money.  In this email, you’ll find two classes from Warren Feld that can help you avoid some costly mistakes and find success! Warren has over 20 years of selling experience – and he shares his hard-won lessons with you. We’re also featuring a few classes with projects that just might be fun to make and sell! All classes are at Super Deals (through Friday!) Enjoy! Donna Kato Founder, CraftArtEdu.com

So You Want to Do Craft Shows  with Warren Feld

You can make good money… IF you know what you’re doing. Warren shares his years of valuable experience and business expertise in the form of sixteen in-depth, approachable lessons so you can maximize your chances of success!  Jam-packed with practical, actionable information, Warren’s lessons cover everything involved in running a successful and profitable show including how to:

  • find, evaluate and select craft shows that are right for your work
  • set realistic goals, build a budget and calculate your break-even point
  • determine the amount and type of inventory you should bring
  • price your work and deal with “hagglers”
  • set up your booth for success, including design, layout and merchandising tips
  • handle cash, credit cards and deter shoplifters
  • and so much more.. this class is almost two hours long!

Warren includes lots of advice and helpful resource links, too. All you need to provide is a pencil, some paper, a calculator and your enthusiasm for running a successful, profitable craft show! Preview and Purchase Warren’s Class All Levels | $30 | $24 through Friday!

Pricing and Selling Your Jewelry  with Warren Feld

Can you make money by selling your jewelry? Yes, you can! Warren has years of experience selling jewelry at craft fairs, flea markets, on consignment, in galleries and eventually in his own store and online. In this class, he shares words of advice and everything he knows about the essential key to success: Smart Pricing! Preview and Purchase Warren’s Class! All Levels | $15 | $12 through Friday!“This class is worth its weight in gold. The information is presented in a clear and thorough manner. Warren shares his extensive knowledge in a very easy to understand format.” ~ Mary C

Add To Cart! These Bargains End Friday!Special Prices on These Classes Expire Midnight CT, Friday, April 25, 2014

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Creative Mentoring – Andrea Rosenfeld

Posted by learntobead on October 25, 2011

Creative Mentoring – Andrea Rosenfeld

http://www.savorthesuccess.com/member/andrea-rosenfeld
http://openstudiocoach.com/
http://openstudiocoach.com/about-andrea-rosenfeld-coaching/articles/ 

 

I recently came across an article Andrea Rosenfeld had written about Creative Mentoring.   I thoroughly enjoyed the article, her extremely clear and accessible writing style, and was very interested in taking a little internet road trip to her website.

How do you take your passion and your art work to an audience?    I deal with this type of question from our students and customers almost every single day.

She offers many ideas and many services.     I suggest reading some of her articles are articles by “visiting creatives”  for special insights.

 

 

Articles to Grow By

 

~OPEN STUDIO~

 

 

Broadcast Louder helps Artists supercharge their creative business, starting them on the path to more visibility and more sales

Playing it Safe in Your Studio

Time Management Strategies That Play Nice

Marketing your Art Business using Retail and Wholesale Sneezers and Brand Advocates

10-Tips to Stay Organized and Increase Creativity

Are You Vibrating Yet? Here’s Why You Should Flip Your “ON” Switch

Are you an Expert or an Experimenter? Your sales strategy depends on your answer

Is Your Website Scaring People Away?

Visual Art Copyrighting Basics

Looking For Trade Show Stories For Upcoming Article (Interactive Article)

How to Create a Healthy Relationship With Money to Gain More

Dear Creative – DON’T do-it-yourself!

Should You Create Art or Create to Sell?

Court Your Stores

Dear Creative, Don’t Do It Yourself

Who is Your Customer, Who Are You?

Would You Dance? *how do you handle adversity?

Look Up! You’re Missing Life! 

Five Important Things to Know Before Doing a Store Show 

Collaboration is KEY to Artistic Growth 

Why We Need Art 

Tips a Jewelry Artist Can Use to Survive the Economy (or any Creative, for that matter) 

 

~VISITING CREATIVE AUTHORS~

WordPress for Beginners

WordPress for the Savvy

WordPress: Who’s Sharing Your Content and Increase Blog Performance

Ready for wholesale? Find out with this MUST-HAVE Checklist

Grow Your Business Through Charitable Giving

Tips For Running a Successful Small Business Publicity Campaign

Why You Should Join Local Art Associations to Increase Your Art Business

How to Bounce Back from Disappointment and Manage Your Thoughts

Jewelry Artist’s Guide to Diamond Buying (Part One- Beginner)

 

 

 

Posted in business of craft, jewelry design, jewelry making | Tagged: , , , , , | 1 Comment »

Any Lessons To Learn From Nail Polish Trends?

Posted by learntobead on July 1, 2011

Any Lessons To Learn
From Nail Polish Trends?
http://www.nytimes.com/roomfordebate/2011/06/30/why-did-wild-nail-polish-go-mainstream-10/nail-polish-is-the-new-lipstick

From Alllacqueredup.com

I read this article recently in the NYT, how women are using many more colors of nail polish than the traditional reds and pinks, and that the use of the full color palette of nail polish colors is getting very institutionalized and accepted.

The writer offers a point of view here for discussion.   Her main point, is that in an era of a weak economy, Chanel nail polish offers at a much lower cost the same cache as purchasing the more expensive Chanel perfume or clothing.   People still want status and the qualities associated with it.   They can not afford the top of the line items they used to.

Many of us are in the business of selling jewelry.     In this economy, how do we survive and thrive as a jewelry design business?   How do we preserve our brand — especially if most of what we sell is on the high-end side?

Is it enough to lower our price points?  Or must we also maintain very visible links and symbols to ideas of status, quality and sophistication?    And if we are to stand out from the pack, should we push things like out of the ordinary colors, textures and patterns?   How far do we push things like color, texture and pattern, to get noticed?   How far can we push these kinds of things, and still be accepted?

 

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