No topic is more vexing for jewelry makers than how to price their jewelry.
At one of my seminars, a jewelry maker admitted she had priced her bracelets “intuitively” based on what she thought people would pay for them.
Until her husband added up the cost of the parts and told her she was losing money on each piece!
Here are five tips for pricing your jewelry:
- Raise prices incrementally. Many jewelry makers are nervous about raising prices for fear it will discourage orders. If that’s you, consider raising prices about $5 at a time and see the results. For many, sales go up along with price changes. Why? Prospects associate quality with price.
- Do the math for sale items. If you have a “20% OFF Sale,” show what the final price will be for each piece. You can also show an example: “When you buy a $140 bracelet during our sale, you’ll SAVE $28. Your final price is $112.”
- Use “supermarket” pricing. Prospects often have a psychological limit when they’re shopping. For example, a car buyer who has $12,000 as his “limit” will likely pay $11,999 but balk at $12,001. Even though it’s small difference, people tend not to exceed their limit. Consider $79 instead of $80, for example, or $84.99 instead of $85.
- Price along a curve. If you think about the “bell-shaped” curve, you know most things fall along the mean (or average) and there are fewer things at the extremes. Your pricing can follow a similar strategy. Have some items at the lower end and some at the higher end, with most prices falling somewhere in between. That way, someone who wants to spend a little more or a little less than your average will always have something to buy.
- Avoid pricing one piece to make a “statement.” Some jewelry makers believe that having a stunner” with a stunning price at their booth will make prospects think their jewelry is top-shelf. That may be true, but the risk is that an eye-popping price tag may turn off prospects if it’s out of their range. Avoid shocking prospects with a “statement” piece. You may still decide to show a phenomenal piece but keep the price separate.
Question: What works for you when pricing your jewelry? Leave a comment below!