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Pricing Handmade Jewelry for Retail Sales

Pricing handmade jewelry is easy to figure out once you have worked out your wholesale pricing.  Use the retail pricing formula as a general guide for pricing your handmade crafts for retail sales.

Jewelry Pricing Formula

Minimally, you, like your retail clients, should be able to sell your work at two times your wholesale price, plus the cost of whatever retail packaging materials you use (bags, boxes, tags, business cards.  So that necklace we priced at $46 wholesale, would retail for $92, and if the gift box/cards, etc costs an extra $2, then the minimum retail price you should charge for that necklace is $94.

The basic pricing formula is this:

RETAIL PRICE =

cost of packaging materials +

(wholesale price X retail multiplier*)

*As mentioned in the jewelry wholesale pricing article, the “multiplier” will range from 2 to 5, depending on location of the store.  The majority of stores, however, use a multiplier of 2 to 2.5 when setting their retail prices. 

When pricing for retail, don’t ever use a multiplier of less than 2. 

You don’t want to undercut any stores that you currently or will be selling to in the future.  This becomes even more important if you sell jewelry online, as some retailers won’t even consider your line if you sell jewelry online.

Problems with Selling Online

Because of the various formulas used by stores when pricing handmade goods, some store owners, especially nationally recognized fine craft galleries and boutiques, WILL NOT do business with you if you also happen to sell your crafts on your website.  Think about it:  how many times have you seen something in a store that you loved, but disagreed with the price, so you took note of the business name and googled it for a better price once you got home?  It’s the same idea with these stores, their thinking is why should they put up the risk of operating a store and paying upfront for your work only to end up as a showroom for your handcrafts?  It’s just a losing business proposition.

One option is to just do business under two separate names, one where you can retail your work online and the other developed for wholesaling to stores.  Some designers try to circumvent this situation by creating 2 different lines:  one for their website and one for stores.  And some stores just cut off all your hang tags, and any branding materials (that you worked so hard to put together!) before displaying your work in their store. 

Another option would be to have an informational website about yourself and your collections, but sell your jewelry online at an artisan venue under a different name. 

The argument between retail store owners and artisans about selling online has been going on since the invention of the internet (which was not even that long ago).  And we are a long ways off from a resolution. 

In the past few years, I have seen more and more stores being OK with Jewelry companies retailing their own jewelry on their company website.  It should be noted though, that these companies are major names, with major press coverage, and you, probably, are not one yet.


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