I've always loved making jewelry. There's something so satisfying about turning raw materials into something beautiful and wearable. But when I started selling my necklaces at craft fairs, I quickly realized that pricing them was way harder than making them! I struggled to find the right balance between making a profit and attracting customers. Sound familiar?
I remember my first craft fair vividly. I had a table full of necklaces that I was really proud of, but I had no idea how to price them. I guessed, and most of my guesses were wrong. Some necklaces were priced too high, and they didn't sell at all. Others were priced too low, and I practically gave them away. I knew I needed a better system.
The biggest issue was figuring out what factors to consider. I kept asking myself, "How much is this really worth?" It felt like a big guessing game, and I was losing.
I decided to get more organized. I realized I needed to break down the pricing process into smaller, more manageable questions. Here's what I started asking myself:
These questions helped me get a clearer picture of the true cost of each necklace. But I still felt like something was missing.
One thing I realized is that the materials I used played a big role in how people perceived the value of my necklaces. I had some necklaces that used base metals, and others that used sterling silver. The difference in cost was significant, but so was the difference in perceived value.
I started thinking about the different price points I could charge based on the materials. For example, I figured I could charge more for sterling silver or gold-filled jewelry because they're more valuable to customers and cost more to source. But for necklaces made with base metals, I knew I had to keep the price lower.
Another thing I struggled with was the fact that some of my designs, while pretty, used chains and charms that looked inexpensive. I knew I could probably buy these in bulk on Amazon, which would lower my costs. But I also worried that it would lower the perceived value of my necklaces.
I also considered the time it took to create the designs. Some designs were simple and quick to make, while others were more intricate and time-consuming. I realized I needed to factor in my time when pricing my necklaces, especially the more complex ones.
After a lot of trial and error, I developed a pricing strategy that works for me. Here's how I do it: