Should You Reduce Your Jewelry Prices to Sell More?
by Rena Klingenberg
A jewelry artist recently asked me if she should reduce her prices so she could sell more jewelry.
Her prices were already so low that I couldn't imagine she was able to make a profit after paying for her supplies and all the other expenses involved in a jewelry business.
 However, this artist felt that lowering her prices even further was the only way to "compete" at shows that were overcrowded with jewelry booths.
I really don't like to see any artist take the "discount" route to selling his or her work. Artists shouldn't try to compete with low-priced imports, and price isn't the only thing people consider when buying jewelry.
There are three factors at work here:
- First, our prices have a lot to do with how people perceive our jewelry.
No matter how beautiful and high-quality your necklace is, if you price it at $10, it's an unfortunate fact that most people are likely to think it’s in the junk-jewelry category and pass it by.
Here's their thinking as they pass by your booth:
- Their split-second judgment is that a $10 necklace is not worthy of buying, nor of giving as a gift. They'd willingly pay two or three times as much for costume jewelry at a department store.
- And if they want to buy jewelry at WalMart prices, they'll go to WalMart. So they move quickly on to the next booth.
- However, if you price that same necklace higher, it will start to attract a lot more interest. People now begin to perceive it as a quality piece of handcrafted jewelry that’s worthy of adding to their collection or giving as a gift.
Artists often say that if your work isn’t selling, then try raising your prices.
It’s often hard to see the true value of the jewelry we create ourselves, and all of the costs that actually go into making and selling each piece.
Also, we want to be fair to our customers with our pricing.
But if you're not being paid for the time, effort and craftsmanship that go into your jewelry (plus all of your overhead expenses), you can't afford to stay in business. Read up on my Jewelry Pricing Formula at http://www.home-jewelry-business-success-tips.com/jewelry-pricing-formula.html for tips on how to price your jewelry more accurately.
- Now, the second factor here is to make sure that you're using high-quality jewelry components and that you're making unique jewelry.
Your jewelry must stand out as different if you want to make a lot of sales at prices that are fair to you.
You can charge far more for truly unique jewelry containing high-quality materials than for jewelry that has a dime-a-dozen look.
Why? Again, perceived value plays a huge part. People feel that well-made, original artisan jewelry is much higher quality and more valuable, so your pricing can reflect not only any additional cost to you of these materials, but also what people expect to pay for them.
- The third factor here is that you may be selling your jewelry in the wrong venues if you want to earn a reasonable income.
Many craft fairs are overrun with bargain-priced imported jewelry, and with way too many jewelry booths in general. At many shows, even vendors who are selling things like pottery and woodcrafts have a beaded jewelry selection in their booths.
In addition, the people who shop at many of these events tend to be looking for a bargain and aren't interested in buying higher quality jewelry there.
These shows are often disappointing, and can make you think you've got to keep dropping your prices to compete.
In reality, you'd do better to sell your jewelry elsewhere. Aim  for places with few or no other jewelers, and where people are looking to purchase high quality handmade items.
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