After selling some necklaces to a receptionist at a dentist's office she suggested I visit a local shop. There I went, with a few necklaces to show, and butterflies in my stomach. I left with a $2,000 order. Three years later, I am now selling at six shops in two different states. I had been reporting my gains as a hobby, until I was told it would be a wise decision to start reporting as a business.
I still remember sitting in my accountant's office, dumbfounded with some of the questions that were being asked.I did not understand what cost of goods sold, and ending and beginning inventory and other business jargon meant. I felt like a fool. I had just shown up with my meager receipts and a close approximation of what I had sold. That visit made it painfully clear that I was not pricing my jewelry correctly. I would create a piece and just ask, "What would I pay for it?"
Before I became a jeweler, I was an avid painter (OK, I still am) and exhibited and sold several of my pieces. I always photographed the paintings that I sold along with information about the painting and who I had sold it to. I realized that my jewelry deserved the same respect. I went out and bought a notebook dedicated to pricing my pieces. I photograph my pieces and give a brief description of the process that I used to create them and who I sold them to. I also show how I determined the pricing, including the amount of time I spent creating my pieces. Yes, this does mean carving out some time to this book but now feel confident that I am selling my pieces correctly. I also enjoy leafing through these books, I am able to see how my jewelry has evolved and the images sometimes inspire new designs.