How to Calculate The Price For Your Handmade Jewelry
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- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your jewelry making business.
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More Tips On Pricing Your Handmade Jewelry
How To Price Your Handmade Jewelry
One of the most challenging aspects to starting a jewelry making business is determining how much to charge for your handmade jewelry.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your handmade jewelry, it's critical that you first identify all of your costs and consequently mark up your handmade jewelry so you can factor in a profit.
The actual cost of your handmade jewelry may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your handmade jewelry, you'll want to create goals for revenue + how much profit you want your jewelry making business to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your handmade jewelry is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your handmade jewelry fits best in the marketplace.
All of these factors play an equal part in pricing your handmade jewelry, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful jewelry making business
KC Holiday from Santa Ana, California, USA started QALO over 8 years ago, a jewelry making business.
- Revenue: $2,000,000/ month
- Founders: 2
- Employees: 45
- Location: Santa Ana, California, USA
Hey there! My name is KC Holiday and I am the co-founder of QALO.
We are a family-first company committed to designing and making products that enable families to share adventures and meaningful experiences—best known for being the creators of the functional wedding ring.
We’ve created an enormous community of over 2 million people who wear QALO to represent the most important commitment they’ve made in their life. This year we as a company will eclipse over 100M in total revenue since Ted Baker (my co-founder) and I founded the company from a dining room table in 2013.
Inspiranza Designs ($4.8M/year)
Diane Lawrence & Dawn Pochek from Colombia started Inspiranza Designs over 15 years ago, a jewelry making business.
- Revenue: $400,000/ month
- Founders: 2
- Employees: 8
- Location: Colombia
Hey there, I am Diane, one of the owners of Inspiranza. My business partner, Dawn Pochek and I started Inspiranza Designs with just $500 and a Big DREAM!
Inspiranza Designs sells sterling silver & gemstone jewelry online across the United States. Our jewelry carries a heartfelt message to bring Inspiration and Hope, thus the name Inspiranza (the combination of two words, Inspiration, and Esperanza - Hope in Spanish) to all those who wear or receive it.
Inspiranza Designs revenue had dropped to a mere $100,000 per year just 4 short years ago and has now grown to approximately $400,000 per month. We have been named by Inc. Magazine as one of the fastest-growing companies in American two years in a row. In 2018 we were named #157 and this year we were named #110 but oh what a journey it has been.
Connie Hung from Los Angeles started costanté almost 3 years ago, a jewelry making business.
- Revenue: $75,000/ month
- Founders: 2
- Employees: 3
- Location: Los Angeles
Hi! My name is Connie Hung — I’m the Founder & Creative Director for the fine jewelry brand, Costanté. I’m a 28-year-old Taiwanese American immigrant. My family moved to the United States in 1996 and I grew up in the quaint suburb of Diamond Bar, California.
Costanté focuses on fine jewelry made with 14k solid gold, diamonds, and other precious gemstones. Costanté and our manufacturing team are based in Los Angeles.
We are available online and offer in-person consultations for custom projects and private shopping appointments at our office in the Los Angeles Jewelry District. Over this past year, our ability to create custom products through a contemporary lens has allowed us to breathe during the pandemic. We have been able to provide a space for people to express creativity in times of uncertainty and this further enhanced our focus on human connection.
Pragya Batra from Bengaluru, Karnataka, India started Quirksmith over 5 years ago, a jewelry making business.
- Revenue: $39,956/ month
- Founders: 2
- Employees: 5
- Location: Bengaluru, Karnataka, India
Hi! My name is Pragya Batra and I am the co-founder of Quirksmith, a design company that creates handcrafted jewelry and accessories.
Quirksmith, as a brand, is much more than just creating pretty jewelry. We create designs that are inspired by our values and beliefs. Several of our designs incorporate Indian languages (like Hindi, Urdu, and Bengali) as well as inspiring words and poetry. One such example is the “Aham Brahamasmi” earcuffand thumb ring. Aham Brahamasmi is a Sanskrit phrase that means “I am the Universe! and I am responsible for what I become”. In essence, we create designs that people around the world can relate to. They are not just decorative pieces.
I started Quirksmith with my sister Divya Batra, who is a jewelry designer and graduated from one of the most prestigious design schools in India (NIFT, Gandhinagar). We started Quirksmith about 3.5 years back in the year 2016. From a weekend passion project for 2 sisters, it soon became our full-time passion. We now process orders worth $40,000 every month and work with artisans across India, to keep the silversmithing craft alive!
Aziza Jewelry ($60K/year)
Aziza Browne from Asheville, North Carolina, USA started Aziza Jewelry ago, a jewelry making business.
- Revenue: $5,000/ month
- Founders: 1
- Employees: 1
- Location: Asheville, North Carolina, USA
Hi there! My name is Aziza and I am the founder of Aziza Jewelry. Some of my most well-known pieces include my colorful gemstone hoop earrings and Mother-Daughter Earring Sets. My Mother-Daughter Earring Sets have become quite popular lately as a gift that men have been purchasing for the women in their lives as “Push Presents” (gifts for a new mom just after giving birth).
Originally, I started making the mother-daughter earring sets after a customer requested a matching pair of heart earrings for herself and her mom to go along with their matching tattoos. I absolutely loved that concept and began making them available for sale because I thought the matching mother-daughter earrings were a great way to cement the already special bond between a mother and daughter.
Mother-Daughter Heart Earrings
Ann + Joy ($48K/year)
Lindsay Ann Gottschall and Courtney Joy Bleier from Miami, Florida, USA started Ann + Joy ago, a jewelry making business.
- Revenue: $4,000/ month
- Founders: 2
- Employees: 2
- Location: Miami, Florida, USA
Hello there! We are Lindsay Ann Gottschall and Courtney Joy Bleier, two sisters from Miami who started Ann + Joy. We make handmade real flower and resin jewelry and sell online and in stores around the world. We take pride in being one of the first companies to make real flower jewelry. During our first year of business, we blossomed almost immediately into a very successful Etsy shop. Etsy was constantly featuring our products on its website and in promotional emails. We are proud to say that since starting in early 2017 we have had over 5,000 sales online.
For all the readers, we are providing a 20% off coupon to our Etsy shop. Use code: STARTERSTORY at checkout!
Gold Pan Pete Design ($30K/year)
Alex Moore from Queenstown, New Zealand started Gold Pan Pete Design almost 9 years ago, a jewelry making business.
- Revenue: $2,500/ month
- Founders: 1
- Employees: 0
- Location: Queenstown, New Zealand
My name is Alex Moore. I’m originally from St. Louis, MO, USA but have lived overseas the last 11 years and am currently living near Queenstown, New Zealand, where I have been for the last 5 ½ years. I have a wife, Paula, and three children, Sophia & Grace (twins, age 5) and Beau (age 3). My main profession (no longer full time) is that I’m a primary school (elementary) PE teacher going on my 15th year.
I don’t have a flagship product per se but I make rustic-styled, outdoor and nature-themed handcrafted jewelry for men and women and other gifts for men. My customers are from all over the world and a mix of male and female, but mainly in the 18-40 age range.
I have a stall at a very popular tourist market here in Queenstown called the Creative Queenstown Arts and Crafts Market. This is where a majority of my sales come from. I also sell online via my website, goldpanpete.com, Etsy, and Felt (an NZ site similar to Etsy). I also have a few stockists that carry my items, with that number hoping to increase in 2019.
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