How to Price Jewelry? If you are intimidated or merely mystified by this process, follow this Jewelry Pricing Worksheet and learn how to crunch the numbers!
Before you set prices, you must understand your Cost Structure. There are two kinds of Costs:
Variable Costs: These costs rise and fall with sales volume
Fixed Costs: Monthly costs that remain more or less stable
Cost of Materials – variable cost
Cost of Labor – variable cost
Other Variable Costs – shipping, packaging supplies etc.
Cost of Overhead (rent and utilites) – fixed cost
Other Fixed Costs – maintenance, tradeshow fees, equipment leases
Rock Bottom Pricing must cover your material costs or you will go into debt.
Hobby Pricing covers material costs but often excludes labor and overhead.
Professional Pricing must cover Fixed and Variable costs.
Ask yourself, what is my goal? To fund a hobby or to create a sustainable business? There is no wrong answer! (more…)
