Daily Wire Jewelry Making Tip for
December 19, 2010

Question:

Lately I have been selling my jewelry at wholesale prices to local boutiques which buy outright, as opposed to commission. I am wondering what their % markup may be in general. I’m aware that markups will vary, but still wondering what typical markup range boutiques may use when they then sell jewelry. Knowing can help me with my pricing and helps to understand the market.

-Rosemary in Colorado Springs, Colorado

Answer:

Nice arrangement, Rosemary! Of course, the easiest way to see the type of markup done by your shops would be for you (or a friend or relative) to go in and look at the prices on your items.

Depending on the shop, keep in mind that their prices may seem quite high in order to have a margin for advertised sales, etc. To define some terms, if you sell an item to them at your cost/wholesale price and they mark it up exactly 100%, then they are pricing your items “keystone. ” If they mark your item up 200%, then they are pricing “triple keystone. ”

I could be wrong, but I don’t think there is a “standard, ” or any specific rules for a store when it comes to pricing.

I forgot to tell you all about some of the arrangements I have with galleries and gift shops. Most galleries take a 40% to 60% commission, so it is wise to mark you items accordingly, keeping within that area’s price points so they still sell and don’t just ‘sit there looking pretty’. One gift shop my work is in takes a 30% commission, but it is a no-profit organization.

When deciding to place your work in any location, here are things to consider (and ask if they are not forthright about them):

Do they cover good advertising; do they take care of returned checks and credit card fees; do they provide packaging and what type is it; are you allowed to have your cards with your work; do they have insurance to cover your percentage in case of fire, theft, etc; do they have a knowledgeable staff who can ‘sell’ your work; what type of display and lighting will your pieces be included in; do they take care of keeping the display clean and organized or are you expected to do it; do they have an agreement to sign that states the benefits and responsibilities of both parties (and anything else that you may have questions or concerns about).  These items are what the commission is going toward (besides the building rent, utilities, etc). Now, is what they require too high or just right?

Answer contributed by Dale “Cougar” Armstrong

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Daily Wire Jewelry Making Tip for
October 7, 2010

Question:

Should mistakes that cost you wire, for instance a broken prong, be included in the cost of the piece, or is this just the price of doing business? I’m making a ring with a prong setting, I broke two of the prongs and had to start over with new wire.

-Traci in Palmer, Alaska

Answer:

Good question, Traci. Ah yes, prongs–they either “happen,” or they don’t.

In my opinion, any product used and destroyed during your learning curve should not be added into the final price of an item. The WS Faculty and I also do not believe in adding the cost of time spent learning to make a new project to the final price. If you are charging by the carat for the stone being set into the prong design, and have purchased it at a good wholesale price, the cost of the wire mistake could be made up there.

And sorry, no I am not going to give all of “those” formulations here, folks, but I can tell you that I do often discuss them in my classes in full detail, as well as on DVD #1 in the Definitive Guide!

Answer contributed by Dale “Cougar” Armstrong

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Daily Wire Jewelry Making Tip for
September 22, 2010

Question:

Would non-tarnish wire be a good wire to use for kids’ rings? Also, what would be a good price to charge for the ring?

-PJ in Louisville, Kentucky

Answer:

Well PJ, there are a couple kinds of “non-tarnish” wire. If you are using craft wire from a hobby store, sure – why not? As for the price, that really depends on the economy in your area. Rings made for children are often lost or misplaced within a few weeks, and making inexpensive tokens for a parent to quiet or reward a child is a great sales item – if you can make a profit by doing so. By this I mean that personally I cannot see the sense in spending 30 minutes and $3.00 to make a ring using Swarovski crystals and argentium (non-tarnish silver) and sell it for $10. If it can be made of the same materials in say 15 minutes and sold for $10, ok.

When using craft wire for children’s products I believe it is important to keep in mind what your goal is as a wire jewelry artist; are you creating and selling to make serious and continuous money, or as a way to release your creative energies and receive a monetary profit as supplemental income?

Also it’s important that children’s products follow the new laws regarding the use of certain materials in some states, such as California and lead content of beads. Use common sense too, as little sparkly things often want to be tasted.

Answer contributed by Dale “Cougar” Armstrong

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Daily Wire Jewelry Making Tip
August 14, 2010

Question:

I am new to this art and wondered if there is a formula for pricing the jewelry we make in craft shows or consignment shops.

Thank you for posting these tips; they have really given me a boost!

-Debbie in Roanoke, Virginia

Answer:

Welcome to our "wired world"! (Warning, it can be addicting.) Pricing is the most difficult part of this or any art form! We do have several great items that can help you. A quick reference can be found in the article, How to Price Your Wire Jewelry. The companion article, Where to Sell Your Wire Jewelry, can suggest new venues.

The best assistance I can give you is to suggest our newest product, The Definitive Guide to Selling Handcrafted Jewelry. I have to tell you, there is nothing else out there today like this guide, it really is amazing! (And it has a 365 day guarantee!) I wish you all the best!

Answer contributed by Dale “Cougar” Armstrong

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Daily Wire Jewelry Making Tip
November 27, 2009

Question:

If taking an order for a custom piece, when finished, it isn’t what the client wanted, how do you charge for your labor and supplies, other than saying upfront it isn’t refundable.  I try to guarantee client satisfaction and this can become an issue.

Answer:

I agree that this is a difficult situation, however if you are ‘up-front’ and firm about your ‘custom order’ policies, your client should appreciate your honesty. One sure way to state your custom order policy is to either print it on the reverse of a few business cards that you hold back just for this type of order, or on a separate card with your contact info that you can give to a client. My personal policy is to take full payment, which guarantees my customer that I will pay for any necessary shipping and insurance, and that I cannot refund their money if they don’t like what they have agreed to, until I actually sell the piece they had me create just for them.

The best way I can respond to your question is based upon my experience. This is how I personally take a custom order (which is also what I teach my personal students). Use a triplicate order pad. Have the customer fill in their personal info, including shipping/mailing address, phone numbers and if available their email. I then write out exactly what the customer would like (based on our conversation) including what metal(s), their stone or mine, their preferred style (if possible, the name of a piece I may already have that they like, which I also take a picture of with my cell phone in case it sells) what embellishments they prefer if any, and a quick sketch. I then go over their order in detail again, jot the approximate delivery date on the form, and when they are satisfied I have them sign the order slip. I add my contact info to the bottom and give them the top/original order slip as well as my card. When their order is finished, I include the second slip with their order when I either deliver it by hand or ship it to them. (If shipping the item, I also call or email this customer to let them know their order is on the way, with the tracking numbers.)

And before you ask, yes I have had a customer who was not happy with her order and I did send her a refund check when I sold the item about seven months later, along with a thank-you for her interest in my work. She has since become a regularly returning client.

Answer contributed by Dale “Cougar” Armstrong

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