Pricing

Like many of you, I slowly became a small business, almost by accident, really. It all began when I made a necklace and received many requests from friends for similar necklaces. I gave those first necklaces as gifts, not really thinking they were of much value. One day a good friend of mine encouraged me to enter a craft show and my necklaces were a big hit. This gave me the confidence to show my necklaces to others and slowly began to pick up sales.

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.