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How to work out pricing for selling to a shop?

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  • How to work out pricing for selling to a shop?

    Hi everyone

    I have recently been accepted by a local wedding shop to supply them with Jewellery (tiaras,crystal bouquets,neclaces ect)

    But what i was wondering is how do i work out a price?

    The plan i will be doing is to sell it to them and they stick their own mark up on and contact me when they want more things.

    I will be having a interview with the manager next week and need to have a pricing plan ready that will please both of us as after all they want to make a profit too.

    Any advice?

  • #2
    Check out this thread - it might give you a few tips:
    http://www.craftsforum.co.uk/showthread.php?t=13254
    AmyE
    www.AREjewellery.etsy.com
    http://arehandmadejewellery.blogspot.com/
    http://www.folksy.com/shops/AREjewellery

    Comment


    • #3
      The general advice is to work out the cost to make it, including components and your time, then add on the amount you would like profit. That is your wholesale price, the retail price is usually double the wholesale price. Shops generally double the price of anything they buy so they would probably expect to do the same with your stuff. This covers their overheads, rent, wages, etc.
      Your wholesale price has to be the price that you would be happy to sell at even if someone bought everything you made. So it must cover all your costs plus a bit of profit. One thing to bear in mind is that you may not be able to buy those 'bargain beads' again and have to use a more expensive alternative so you have to cover the costs properly.
      If you sold direct to the public yourself you should charge the retail price as well. This keeps the shop happy as you would not be undercutting them and you would make more profit because you don't have to pay the shop to sell it.
      hope this helps,

      Melanie

      Comment


      • #4
        Pricing

        Pricing accurately is quite tricky, as a shop owner if I bought an item from you wholesale I would probably double the price I paid you for it, perhaps a little less, but not more than. If it was sale or return I would expect to get a third of the selling price. This is normal for my area. A shop may have to account for vat charged also, which if you are not vat registered they won't be able to reclaim. Their actual profit margin on your item could be fairly low after all running costs are taken into account and if it doesn't sell they make a loss. Having said all that, don't undervalue your work, make sure you are happy with the price you get for it. If you don't price yourself realisticaly you won't stay in business for long.
        Chris W.
        x
        Gemstone Jewellery and Gifts

        Comment


        • #5
          Ooh that's great!! well done! Regarding the pricing I would agree with the other posts - make sure you are happy with what you are going to receive when they sell. Do let us know how you go on!!

          Helen x

          Visit my blog!
          http://peggycrafts.blogspot.com/

          Website:
          www.peggycrafts.co.uk

          Etsy shop:
          www.peggycrafts.etsy.com

          Comment


          • #6
            thanks everyone for your replys some great info there.will let you know my finishing prices that i work out with the shop.

            also another shop in another area close by has contacted me to see my work so i am really pleased all my hard work is going to pay off and i havent even printed any fliers for shops for marketing yet.

            woo hoo can you tell im excited yet.

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