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pricing and profit

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  • pricing and profit

    I have a question going round in my head so thought I would get it out and see what you lot think
    firstly I have to say that I love this forum , everyones so friendly and full of good advice , I only joined a few weeks ago and wanted to get to 25 posts so that I could post photos to ask you all for advice about the jewellery and beadwork that I've just started doing and now I can't believe how many posts I'm up to
    doesn't time fly when you're having fun lol
    anyway back to my question
    do you think its better to price your items lower and sell more but make less profit each time but you could make more in the long term ???
    or price your items higher but not sell so many ???
    people think our cards are very reasonable priced ( I still make sure I make a profit on each one though ) but because they're reasonable and people know we're not ripping them off ( and please don't think I'm accusing anyone on here of doing that because I'm not ) they come back again and again and again
    for example I had a lady buy a card from me through e.bay and she was so pleased with it she orders from me every month and its usually about 8 cards a month
    just wondered what you all thought

  • #2
    I think another question similar to that is 'How long is a piece of string'
    If you are happy with what profit you make and happy with what you sell then why change anything.
    God helps them that help themselves.


    • #3
      I think if you are getting repeat customers then you must be doing it right. As long as you are making a reasonable profit that you are happy with carry on.
      As for volume v higher prices, if you look in the high street Poundland seems to be doing just as well as M&S !!
      You may like to try out a small 'exclusive' line with higher prices and see how they go ?



      • #4
        I think the best thing is have several ranges, those that are the bread and butter, are quick to do and make a reasonable profit. Then have a luxury range perhaps offer a more personal service such as what the customer would like etc. This way you cater for all tastes. At events you will always get those that buy cheaper but some that do not think about the cost only what they like.


        • #5
          If anything sticks around too long I usually re-evaluate the price as I prefer to get it cleared and on to the next thing. Sometimes it is easier to look at somebody elses work and price realistically. For instance I was at Atherstone yesterday where Rachybaby1 was selling her fantastic woven purses, bags etc and they seemed far too cheap to me (and I told her so!!). So much work and not a little passion goes into handmade crafts that I think we should make a realistic profit to reflect that.Not sure that answers your question really!


          • #6
            I think having a few ranges at different price levels is good.

            For example with my jewellery I'll have stuff where I price it by working out costs, doubling it and adding on my time but I'll also have some bits made with cheaper beads threaded onto elastic (bracelets) because I know that children like to buy stuff with their pocket money at a lot of the fairs I do. At the fair I did yesterday the first things I sold were 2 bracelets at £1.50 to 2 girls but I also sold some of my other stuff later on to adults.




            • #7
              Oh meant to add that I don't tend to reduce things unless it's for a particular type of sale (organic week, etc). Yesterday at the fair I went to I had some tote bags. They are priced at £4.50 for a large and £3.50 for a small. The lady next to me was selling her company branded tote bags for £5.95. Lots of people commented how nice the totes were but walked off when hearing the price. My husband said do you think we should lower the price and I said no. By the end of the day almost all of them had sold.




              • #8
                I quite like the idea of different ranges I can understand where you're coming from but and I dont' know if this will make sense I only tend to work on one level , not sure that its coming across properly
                my cards and jewellery are just everyday items I don't think I'd know how to make a luxury card and I certainly couldn't make the jewellery items that you all do
                I think a lot of the trouble is I haven't much confidence in myself I have more than I used to but I just can't believe that people would pay more money for the things that I've made
                I showed my 19 year old son the snowflakes yesterday and told him the price and he said don't you think they're overpriced afterall that would be £10 for 4 and then as soon as he said that I thought no you're right no one would pay that
                dont' get me wrong he was very helpful and came up with some good ideas
                one of them was 4 snowflakes for £10 plus you get 4 wine glass charms free
                also buy three items and get the cheapest free
                he's got a good head on his shoulders but straight away I just think my jewellerys not good enough


                • #9
                  Sunrise stop that!! You are making some good simple jewellery and you are lerning new techniques. You will be surprised how quickly you improve. I was amazed to find friends wanting my jewellery when I first started, (and thought they were feeling sorry for me!) but it actually gave me the confidence to experiment and take on more complicated methods. When I look at my earlier pieces now I am sometimes critical of them but they were vital steps along the way to greater things. Hang on in there you are doing just fine.


                  • #10
                    thanks Janet
                    I do know what you mean
                    when we look back on our first cards we were so proud of them but really they weren't that good
                    we have come on in leaps and bounds but I just find the jewellery making hard I know practise makes perfect and I do enjoy it but its just quite fiddy and difficult
                    but I will keep on it with it promise


                    • #11
                      I have a spread sheet where I put in the materials the time it has taken me then it calculates what I should charge with or without postage and also the amount to take off for my repeat customer discount.

                      But saying all that I always feel like I charge too much, but then its a lot less than my competitors charge.
                      My hats can be seen in my album


                      • #12
                        Sun, you have to believe in yourself! The stuff you have shown us on here is very good and you're only a beginner. As Janet says, you will improve very quickly and you'll be making stuff you never thought possible. I still get excited when I learn a new technique or try a new product that improves the quality of my work.

                        When you have built up your confidence you will quite happily order more expensive components and you will have to factor that into your pricing so you will be selling more expensive jewellery.

                        As for your prices - find a strategy you're happy with and stick to it. If people like your things then they will buy them.

                        One thing I regularly do, I work out my prices and then stick a couple of pounds on top of that price. Then when a customer is interested but needs an extra "push" to part with their money, you can always knock off a couple of pounds and they think they're getting a bargain but you're still getting what you want for your product. Having said that, I know this theory doesn't work for online selling but it does work (sometimes) when selling at fairs or markets.

                        Step-daughter's website selling hand dyed sock yarns

                        ~ * ~ * ~ Of all the things I've ever lost, I miss my mind the most! ~ * ~ * ~