Pricing.. how do you decide?

[Former_Member]

Do you have a formula for pricing? It is something that i struggle with and it always seems like people say either the prices are too high and they can't afford them, or they are too low, so my stuff must be 'junk'. I don't do a lot of the intricate wire wrapping that most of you do, but I pay a pretty penny for most of my stones.. so I'm struggling to find that happy spot.

[AnjasArts]

http://www.rolbe.com/etsy.htm
I use this for all my pricing. When i started I was waaay to low. I was losing money. Now I make a small profit. Wire wrapping is considered art. You also need to factor that in. Some charge more for that. I don't except on pendants.

[sarahndippity]

20$hr+cost of material+20% overhead

This is my formula that I use. I don't know if it is high or low. Like you said some people find my jewelry way to low(amazing I think as I don't view it as low) while others find it on the high end.

[AnjasArts]

I should also mention that I target budget minded shoppers, because I myself am one.

[Former_Member]

I essentially use Sarah's formula, except that my overhead is 50% to cover online time searching for stones, as well as cost of packing materials, advertising costs, incoming shipping costs, travel to gem shows, and booth fees. This is my wholesale price, which I offer only during sales and special discounts. It does NOT result in profit., but is a break-even point (which I'm not even close to meeting after about a year and a half of being in business).

When I exhibit in local stores that charge me 30% commission (plus an additional sales tax that they also don't charge the customer or report), I have to jack the price up another 40% on top of that to result in a retail price.

That being said, even though my friends, family, and loyal customers agree that my stuff is well priced, I still haven't sold much on Etsy, even during monthly "wholesale" sales. So whatever I'm doing, take it with a grain of salt before mimicking it.

[LeesEarringBoutique]

Etsy has some great info on how to price, but I've always been too chicken to totally use their formulas. This is my second year on Etsy. Last year I had decent sales for a newbie, but I was way under priced. This year I've raised my prices and it has been encouraging. I've attracted a higher end buyer. But they are still low for the time and originality of my jewelry. If I used Etsy's suggestions my prices would be double what they are. I try to keep a range in my shop to attract all buyers. Like they say, we need to have our prices high enough that we can afford to have a 'sale' once in awhile without losing money.

[sarahndippity]

Jackie I am hoping to increase my overhead to yours in the next couple of years. I haven't made a profit either but my business is just 2 years old and evrything I make has been going right back in, to expand my shop. In the begining I sold my stuff a lot cheaper just to get the sells for the first year, this last year has been slowly uping the price to a more fair price for me and the amount of time that I put in the jewelry. This worked for me but I think I got lucky with my sales on Etsy, there is a lot of competion and those first sales are hard to get.

[JewelryByGaladryl]

I have a fixed formula.
Costs of item including cost for packaging plus 30% for profit.
On that I add 10% buffer (in case there is a sale, I used to lose all my profit during sales) plus etsy commsion plus paypal fees plus half of the shipping costs (then the shipping costs the customer sees, does not look so high).

[Former_Member]

I use a program called Jewelry Designer which stores all of your inventory info and handles pricing, amongst many other things. Basically you can adjust the percentage that you charge to be whatever you want. The formula is (Supplies x mark-up) +labor +other (which might be whatever tax you have to add). My mark up is 2.5 for wholesale, 3 for direct sell, and 4 for retail. I charge $20/hr for labor.

[Former_Member]

Pricing is certainly a very individual process, it would vary not only for your skill level in your craft but also overhead cost.
This will certainly vary shop to shop,taking into account how much an artist spends not only on supplies,but also tools,software,advertising,web design,shop rent,training classes,etsy-paypal-credit card fees,employees etc.,etc. These are all things that should be considered into prices.
As far as the charge for actually making the piece,well that just depends on your skills. If you just started wire wrapping, it might take you 2 hours to make something that would take you 30 min. to make years down the road....and the craftsmanship would be 100% better. I don't think anyone could really expect to charge a big price for beginner work,no matter how long it took to make it. As beginner,intermediate I think it would be best to price low and pay for your supplies(or atleast help) and keep practicing,don't really expect to make a big profit,it is a process...like college.A college student that has taken 6 months of classes can't expect to find a job paying the same as someone with a master's degree. It's a process of learning and patience.
I am happy to see all the hobbyists/beginners on Etsy,they charge dirt cheap for their work,then people who can't afford a more couture piece still have a low cost option for wire jewelry, I think we all work together in that way.
As far as myself...wellll I make enough to cover my costs....finally.But that's it (taking into account I just opened a stone shop and have lots of extra cost) I will probably give myself a raise in another year. But I do lovve what I do,and I'm patient. I know I can't wake up and be "master" , but I will be one....and you better believe I am going to pay myself for that ;-)