Don’t Under-Price Yourself Out Of Business

Parts, Labor Overhead

One of my clients, Jan, had taken a few of my classes, was very excited about beading and jewelry making. She began selling her pieces to the people she worked with. She was a traveling salesperson for a health care company, and met lots of people on her travels. And everyone wanted her pieces.

Week after week, Jan would return to the shop and buy a few hundred dollars of beads. and week after week, she enthusiastically reported that she was selling her pieces right and left. After several months, she remarked that she needed to take my Pricing class. As she continued to talk and elaborate about her pricing strategies, she remarked that she typically added $15.00 to the cost of her materials, and that sometimes, her prices were probably lower than the cost of her materials.

Hmmmm….

So if she paid $55.00 for the materials in her piece, she might price it at $70–75.00. A great deal for her customer. But not so great for Jan. I told her to raise her prices.

…And sign up for my online video tutorial about Pricing and Selling Your Jewelry.

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Thank you. I hope you found this article useful.