Now you’re in the jewelry business, making lovely pieces and you need to figure out how to price them so that they will actually sell!  Below are some tips on how to set prices.

First of all, as a jewelry artist you need to decide what flavor of wire wrapped designer/jewelry artist you are.  Are you inclined to attract the value shopper who wants something low cost but still attractive or would you rather sell to the middle tier customer who considers jewelry an expression of who they are?  Or maybe your desired customer is the investment type who believes that buying a “brand” is as important as the jewelry itself?  Once you decide which type you are creating for, then you can begin to determine your prices.

The best way to start is to assess the pricing levels of your competitors.  Again, your competitors will fall in the three categories defined already – budget jewelry, quality costume jewelry, and designer jewelry.  Within each category there are various subcategories such as ethnic or regional, artist, handcrafted, semi-precious stones, precious metals, etc.  Search online for the products that are similar to what you craft.  Identify a number of different manufacturers and ask them for pricing.  If you don’t feel comfortable asking, persuade a friend to help you because if you don’t know what the competition is doing you can’t effectively price your product.

Another rule of thumb in manufacturing is to charge five times the cost of production.  Jewelry however usually has an additional 40 – 200% markup beyond this because often there are middle-persons who need to get paid for merchandising the product.  If you don’t have this layer in your sales process then you can compete to garner more sales for a similar product found in boutiques or department stores.

You may choose to sell direct to a retail store but you will see yourself getting paid 20-40% of the actual sales price because of this markup.  Selling online is an effective way to merchandise your jewelry also; however you will need some lessons in building a store and then marketing it.  It will require that you build a recognizable brand, build business and consumer relationships, and pay for advertising and marketing that utilize online tools.

Finally, you can always change the price if it’s not working for you, adjusting it up or down until you find the sweet spot that covers your cost of production, your overhead and a profit.  Also, don’t forget to enjoy this pricing process.  Lowering prices does not necessarily increase sales; sometimes the opposite is true because your jewelry will be seen as more valuable, more in demand, and more compelling to own.

For more on Pricing Your Jewelry make sure to read our How to Price Your Wire Jewelry (Article).

craft shows

If you are an especially good crafter and have finished a number of pieces that people would be willing to pay money for, then getting a stall at a craft show may be a good idea. People love the personal touch of homemade items like sculptures, pillows, stained glass, blankets and even clothing. The bonus of craft fairs is that they are often frequented by boutique owners. If they become interested in your work, then your hobby can turn into a profitable home business. In this article, we’ll discuss the kinds of craft shows available and how to use them to your benefit.

A wide variety of craft fairs and markets take place regularly in most communities, from small local events to monthly and regional fairs. There are also large annual national events aimed at consumer craft buyers who purchase products for retailers. Participating in an art and craft fair allows you to market your products to a wide customer base. Selling your products at this kind of show instead of a flea market also gives you an edge because people attending have a specific interest in the beauty and uniqueness of homemade products.

One way to stand out at a craft show is to do a live demonstration. Set up a few of your raw materials and share the techniques for your particular craft. When potential customers see the skill of your work and the love that you put into your product, they will be more likely to make a purchase. Also, people standing around your booth watching your demonstration will draw the curiosity of people passing by. Before you know it, you’ll have a crowd of shoppers around your booth. Be sure that you’re friendly and are willing to answer questions. Personality will help to sell your product and possibly build up a clientele who will buy regularly.

Before you pay a fee to take part in a craft show, make sure that you know the dimensions of your space, where the space is located, what’s included in your fee, and when you can set up and close down. You should also be cognizant of your personal comfort. Wear appropriate shoes, dress for the weather if the exhibition is taking place outdoors. To make purchasing your goods easier for your customers, make sure that you have small bills and coins available to make change. This is something that many vendors forget to do and it really can be annoying to potential customers.

Unique, handmade items are hard to find so craft shows and fairs are always busy with customers who are willing to spend. Instead of giving away your wonderful handiwork, turn the time you’ve invested into cash. Not only can you make money at a craft show, but you can meet other crafters with common interests. Take the time to browse the other stalls and enjoy the work of others too.

Mother’s Day is almost here, so sometime in the next few weeks the crafters will come out in force to create gifts for Mother’s Day. This means some of them will need vintage Mothers Day cards, which will allow them to incorporate vintage art into their gifts. Many creative people prefer vintage, because it has a traditional feel that naturally goes together with honoring our moms.

Scrapbookers also like vintage images for Mother’s Day. Whether the scrapbook is traditional paper or digital, vintage images make them all the more special. For example, these vintage flower border scrapbooking embellishments. They were common in the Victorian era and could be found in the ubiquitous scrapbooks of the gentler class. They were often hand-painted and used to ring the word “Mother” as a way of honoring dear old Mom. That practice lives on as scrapbookers return to the past to find ways to celebrate Mother’s Day.

Naturally, the scrapbook embellishments that work so well to honor Mom can also make beautiful hand-crafted Mother’s Day cards. The gorgeous flowers, go perfectly in the center of a Mother’s Day card. Also, they are perfect as a 3D embellishment. By printing the border on card stock, the inside and outside edge details can be cut around and layered over another element, such as a photo of Mom. The photo will show through, and the result will look like a fancy picture frame.

Those who don’t consider themselves crafters can also make a free Mother’s Day gift. Just choose one of these free Mothers Day certificates, download and print. The certificate blanks are pre-designed and in PDF form, so there isn’t a lot more to do than print one and sign it. Of course, the certificate would also be nice framed. The frame doesn’t have to be fancy. Any mom would love to have it. These are great alternatives to otherwise more expensive presents such as a new orthopedic bed, dozens of roses, that new car mom wanted and other similar gifts!

So this Mother’s Day, make it at home. It’s a piece of cake, and the final effect will be beautiful If you do your mother will surely be thrilled, which will give you extra brownie points. She might even ask for the same thing for next Mother’s Day.

When families struggle to make ends meet or react to the loss of income, suppliers of goods and services must respond to keep an even keel in their business.  But, saying so is not as easy as doing so.  Erecting sales signs or spending more money to land fewer customers is a “knee-jerk” reaction and not the only thing businesses can do.  For jewelry makers, it’s easy to consider their product a “luxury item” which feels as if it will be hit the hardest by the downturn.  However, thinking so is counterproductive as you probably already know.  So, how can you insulate yourself from declining sales, turn the loss of sales around, and increase business?  Following are some specific things you can do that will work for you!

Work harder. If you worked 40 hours a week when the economy was strong, it’ll take 50 or 60 hours to get the job done now.
Assess & Analyze.  What has been working for your business?  What has sold the most and what produces repeat customers?  Once you analyze exactly what it is that has worked, focus all of your energy on it and ignore and shelve those things you did that maybe were more fun, but didn’t give you the return on investment that you wanted.

Create new jewelry pieces. What you say – start something new?  Yes!  Sit with friends and family and brainstorm jewelry ideas that WILL be in higher demand in an economic downturn than other pieces and develop your go-to-market strategy to get them in front of your buying audience.

Keep Marketing. It is so tempting to scale back on marketing and advertising in a downturn because marketing expenses don’t have a direct and immediate impact on sales. However, you are in a fight for market share and if you don’t want to lose more than your competitor you have to stay in the game. If people don’t know who you are or why they should care, you’ll not only lose opportunities, you’ll lose the customers you have because someone else with a voice will take them.

Put resources into sales. Companies are loath to add cost when business slows, even in the sales department. Yet for the reasons stated above, expanding the sales force enables you to outperform the downturn, while contracting pretty much guarantees you’ll do worse.

Do whatever you can to be remembered by your customers. When business is booming, customers often overlook the nice things you do for them. But when customers are struggling, they never forget even the smallest gesture. Recessions are opportunities to build long lasting relationships. The reverse is equally true. Treat a customer roughly in tough times and they’ll drop you the first chance they get.

Innovate. Now is the time to squeeze more performance out of all your efforts by streamlining and lowering the cost of doing business.  Look at areas where you can reduce cost of goods sold, rent, energy, and the efficacy of your policies, procedures and information management.
Keep spirits high and instill confidence in those around you. Show appreciation for the extra hours and extra effort by those around you. Give people a chance to blow off steam. Force yourself to take a break. Nobody works well when they lack motivation, and this is especially true in tough economic times. In a recession, strategy and tactics become more important than ever, but the human element – more important still.

Ask your customers. Don’t be afraid to reach out to your best customers and ask them what ideas they have to increase your business.  Is it really price and if prices could be lowered, would that stimulate a purchase?  Is offering a lower cost alternative the answer?  Do your customers require financing?  Whatever it is that will stimulate a purchase is what you need to figure out and then keep repeating it.

In closing, sometimes in an economic downturn it feels like the ceiling is going to come down on you and your business but in fact, these times are when the best opportunities present themselves to those that are positive, eager, and prepared to see them.  Are you one of those business people?

For more ideas on positioning your jewelry during tough economic times make sure to check out our incredible wire jewelry sales and marketing books!

Many of you jewelry makers may be concerned about the price of gold, especially in the current economy, because it directly has an effect on your business or favorite hobby. The purpose of this article is to review the basics of fluctuating gold prices so that you can be prepared for an unforeseen soar or plunge.

Before 1900, the U.S. relied on a bimetallic standard. Under this system, a certain amount of gold and a certain amount of silver were equivalent to one dollar. In 1900, the U.S. moved to a gold standard. Under the gold standard, certain amounts gold, and not silver, were equal to the dollar. This monetary system caused the price of gold to remain relatively stable, although problems prevailed. In 1975, the U.S. began to float the dollar, adopting the fiat standard, respecting both the value of gold and foreign currency. This standard, which is still in place today, allows for more fluctuation in the price of gold.

Although the price of gold is subject to change, the value remains the same because the price fluctuates mostly due to the condition of the dollar. The price of gold typically reflects the U.S. economy. During inflation or a crisis, gold prices are high; the opposite is true when the economy is thriving. Gold prices also indicate the value of the dollar. On average, whenever the value of the dollar is low, gold prices are high; when the dollar is high, gold prices decrease.

Presently, the United States economy is definitely facing its challenges. And the fluctuation in gold prices has shown just that. In just 18 hours, gold prices went up $75 dollars in March of 2009. Some experts predict that gold prices will reach $1,500 an ounce by the end of 2009, though others beg to differ.

So how does today’s economy affect the jewelry maker? As the economy worsens, and gold prices rise, supply prices are also rising. Gold wire and findings will be more expensive to purchase than in the past. This may result in higher purchasing prices for the designer’s consumers.

On an upbeat note, there are many companies that are offering great bargains for their customers, even in the jewelry-making industry. One such company, wire-sculpture.com, offers a 25% discount after becoming a gold club member. This is a great way to save on gold wire, findings, and chain! Another alternative to the high gold prices could be to consider using more sterling silver and copper. This option may keep the tag price down, resulting in happier customers.