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Daily Wire Tip Dec. 15: Pricing Jewelry Made with Gold Wire

By on December 15, 2009
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Daily Wire Jewelry Making Tip
December 15, 2009

Question:

I bought wire at $800/oz.  Now it is over $1100.  Should I reprice all my gold pendants to offset the price of gold wire I will need to reorder, or just keep it the same price, and raise the prices of the new pieces I make?

Answer:

It sounds like you are working in either 14k or 18k solid gold, the price of which is not going to come down again for a long time, if ever! Due to this fact, my advice is to adjust the prices of your entire previous inventory to reflect at least a 50% to 75% portion of the difference, because you will never be able to replace your materials stock and continue to pay yourself if you do not. By increasing at just a portion, you will satisfy both the need to be able to keep your customers as well as personally survive. When pricing your new pieces use your ‘real time’ cost and explain what you are doing to your customers, as they question the difference in prices between pieces that are side-by-side. It is my opinion (due to a recent experience with a similar situation) that your customers will appreciate your honesty and you will probably sell your older pieces more quickly!

Answer contributed by Dale “Cougar” Armstrong

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3 Comments

  1. avatar

    Alex

    December 15, 2009 at 3:04 pm

    You must be selling high end work to high end customers. I would respectfully suggest working in gold filled and silver, either Sterling or Argentium Sterling. You will be able to charge for your work instead of materials, you will be able to sell to more people – the Middle Class like jewelry too – and price fluctuations will not hit you so hard, nor will it affect the price of your work so much. Plus, I have seen a lot of people at shows who tell me “I just don’t like to wear gold”. What do you do then?

  2. avatar

    Jessie Adams

    December 16, 2009 at 3:12 am

    I agree with Dale on this one completely. Even with just gold filled findings and wire I found that I really needed to keep my prices current. Those 2mm GF beads really start adding up in replacement costs when you use a hundred or so at a whack in a necklace.
    Just keep track of your cost of materials tax season is looming upon us and one of my least favorite tasks. Inventory!
    Have fun and Merry Christmas!!

    Jessie

    • avatar

      dalecgr

      December 16, 2009 at 9:43 am

      A quick ‘tax tip’ for those who have not yet declared themselves a ‘business'; choose cash method over inventory as once you choose one you cannot change your mind for future years and as Jessie refers to, counting beads and weighing wire at the year’s end would be a pain.
      Dale/Cgr