Sophie here to talk about the touchy topics, including MONEY! This one feels especially hard considering the precarious economic and political times we are living in, but I wanted to give you a behind the scenes peak into how we price our jewelry.
Having just come out with a new collection, I thought it was an appropriate time to dive in!
In the past, I've designed our fashion collection to remain under $250. I was worried that if I had anything too expensive, people just wouldn't buy it. It will always be important to me to have a range of prices available, but as I've branched more into fine jewelry the past few years, I've allowed myself more freedom around designing chunkier and more complex pieces. This did, of course, lead to more expensive pieces in my newest collection.
I know not everyone will be able to afford these pieces, but it has been important for me to remove self imposed constraints and charge an amount that will make my business sustainable and profitable.
Pricing is always complex because it involves a delicate balance of factors that directly impact both business sustainability and customer's perception/ability to purchase.
The costs that go into pricing a piece of jewelry include:
- Materials: This encompasses the cost of precious metals (gold, silver, bronze), gemstones, and other components used in the piece.
- Labor: This includes the time spent on design, craftsmanship, and production. It may involve tasks such as CAD work, casting, wax carving, setting stones, polishing, and quality control.
- Overhead: These are fixed costs that don't vary with production volume, such as studio rent, tools, office supplies, shipping, and marketing expenses.
- Packaging: The cost of boxes, bags, or other materials used to present and protect the jewelry.
- Complexity of design: More intricate designs typically require more time, skill, and potentially more materials, increasing the overall cost. Custom pieces will always cost more because they are one of a kind rather than something I can replicate.
- Special skills: Unique techniques like hand carving or specialized expertise may add to the price.
- Markup: This covers our costs to do wholesale and profit margin.
- Market rates: We have a general idea of our competitors and may adjust prices up or down to be closer to the general market.
All of these factors are considered when we price our jewelry, and I hope it helps you better understand what goes into making every single piece!