I need some advice my problem is that I've been invited to a block party/fundraiser to sell my jewelry. Well I don't want people to think I'm too expensive, so I'm not sure what my prices should be. I make beaded charms, bracelets, earrings, necklaces, and jewelry sets. Any advice would be greatly appreciated. Thanks!
First of all, it's not about what other people think about your prices. It's about what makes YOU the profit. After all, you are trying to make money with your business. That being said, what I've heard is to take your materials and the time it takes to make your bracelet and calculate it like that.
Example: The materials for a bracelet costs approximately $3.00. It takes you an hour to make a bracelet. Pay yourself say 10.00 hour. Therefore it costs 13.00 to make that bracelet. I would charge $20-30.00 for the bracelet.
Of course, I am not an experienced jewelry maker like you, so my prices might be off, but I hope you get the idea. You can pay yourself more or less depending on your market.
Now, since it is a fundraiser, you might reduce your prices a bit because it's for charity, but never sell yourself short where you end up taking a loss.
Great advice, Christine! I will say though I do believe it does matter what your consumer thinks about the prices. After all, if they feel your prices are too high and therefore will not purchase from you, does that benefit your business? Not only will you not make a profit, but you will take a complete loss. In my opinion, it is really about knowing and understanding your target market. Perhaps you can start off with a certain price in mind and see how that works for you, initially. After an hour or so in, if you haven't sold one thing, maybe think about dropping the price a little. If your products are selling like hotcakes, for next time you'll know that you can go up on the price. Sometimes, it really is trial and error. We just have to be quick to adapt, while ensuring that our decisions benefit our businesses.