Pricing

 Introduction to Pricing!

One of the questions many of my workshop students ask is; How to price their handmade jewelry?

When you create a handmade product there is sometimes an emotional connection which makes it difficult for you in the first place to sell the piece and then when you are ready to sell, the question of pricing pops up.

 Questions such as the following:

• Would they like it?
• Would they pay?
• Is the price to high?

If, you start the pricing process with these questions it could create pricing fear and lead to inaccurate pricing.   When pricing your handmade goods try looking at it from a different standpoint, make an attempt to answer these costing questions:

• How much was the cost of the materials?
• What other variable expenses are related to production, packaging and promotion of your goods?
• What are the overhead costs we sometimes neglect such as rent and utilities?

 After thinking about costing, you need to make a few more decisions to create the best price. Questions such as the following should be considered:

• What is your aim; to cover your expenses or make a profit?
• What is your profit mark up?
• Is the piece one of a kind, or a mass product?
• What is the market value for similar products?

 By changing your approach to costing and by developing a pricing strategy, you will begin feeling more confident to stick that price tag because you would have developed a reasonable price. Remember too low or too high a price can result in loss of sales and profits, needed for growth.

In another post I would go into more detail about costing and pricing. I do hope this article inspires you to approach pricing as a valuable process not a choir.

 Happy Beading!

 Tameika Fletcher – Birmingham

Director, Bead Cafe