Science of PRICING

Hmm.... Pricing your beauties are most crucial..

Should be reasonable n static for a particular period of time...

Add all the expenses plus percentage of profit is the price in rough.

Low pricing may leads to underestimation, on the other hand if your prices are high people may hesitate little to buy it from your collections. Especially similar products are available in market at competative prices if any.

Simply says:

"Neither too high, Nor too low"

 - let it be your principle definitely be it for a person who begins the own business.
You may think to buy your at cheap cost whatever available so that you can charge less. The wrong you are!!!

Never compromise in quality. Make your client a life long client by giving quality as well as unique pieces. They will not left you. Unless they definitely prefer you for next purchases. Another ill effect, they will not suggest you for their friends or relatives. Beware of mouth publicity in such cases.

Elements to be considered for pricing

1) Availability and price of similar product in the economy  :- what if the product you dealt with available in plenty you should be oligopolistic. Search for other (many) sellers and compare their prices. Conclude yourself n fix your selling price. Keep in mind, many sellers selling their makes at preferably high quality n charges less than you customers will flow towards them. You should make it at par more or less similar pricing with similar product quality. Its true for products of scarcity will get a high value depending on the factors "demand and availability"
ie, when demand increases availability falls down which will rise the price level.

2) Cost of raw materials :- You will have to gather lot of raw materials to get your works done. Consider what and how much materials used for a particular piece. Price of raw material also reflected by product scarcity or availability. Calculate the amount.

3) Labor cost | making charges : its a reflection of YOU in the jewelry. Labor cost means how much you should charge for making a necklace, ear ring, or bracelet . If you are assisted by anybody you have to pay wages per piece  or per hour. If you make it yourself things would be little flexible. Its important that you are pricing your time not only. You fix a price for the conception of design, artistic talents, sometimes your sleepless nights, your concentration, perfection n finally your precious time.m Do not under estimate yourself. without you its just different materials.

4) Rent : Expense on rent for your physically exisisting shop or store or for listing in etsy or any fees charged for selling with e-commerce giants (Amazon, Ebay etc) as a vendor.


5)Miscellaneous expenditure:- Electricity, wear and tear of your tools,travel expense,print/ paper unexpected costs like damage/ evaporation/ burning clay while baking etc etc. Some of these will be hidden that you may not notice. Fix an amount or percentage for each of these. Its not fair to charge these hidden charges to a single person.You can fix for rate of electricity individually. But incidents like burn/ evaporation/ depreciation not like wise doing so will result in highly fluctuation of final price.
Suppose you travel to a place to get all your stuff, then proportionately add that amount too.
Just  Foresee things



6) Profit :- Its better to think previously what should be the profit, fix a certain  percentage of all costincurred as profit. Don't think that the making charge is your profit. It will contribute to your income unless you are not an employer instead self employed . It is your ultimate income.

7)Packing and postage: Ok, you can either charge seperately or inclusively. Don't forget to notify your clients whether you give FREE SHIPPING or not. Ensure proper n intact packing for secure delivery. Check for tariff plans of different providers in both inland and international parceling. Select most ideal one for both you maker n your customer.Check what you spent for packing box, wraps, and as courier fee.Its the cost for you under this heading.

7) Be aware of Tax policies of the country if any applicable.

                                      Here's a very simple equation:

        Price = cost of all materials + labor +other expenditure+ profit

Be cautious in fixing a price for wholesale and retail. Set two different prices lower for wholesale n lil high for retailing. Lowering price would not affect in wholesale deal cos you earn a huge amount of money as a whole at a time by selling in bulk,while  in retail you have to wait for (sometimes)
 months to get sold. Think wise, perform nice

Happy pricing....... 

   




(This article influenced by my bachelor degree in commerce and from little experience )
 (Google images courtesy)