“I Made These Earrings, But I Don’t Know How to Price Them.”
“Can I Ask for Your Help on Pricing My Beadwork?”
“I’m New to Beading, But I Don’t Know How to Price My Work.”
These are comments I hear far too often, and I can honestly say I was once in that position on my beadwork journey. It can be daunting to see all these incredibly talented bead artists whose work inspires you, only to find their “sold out” earrings priced at amounts you can't even fathom for your own creations. But I’m here to tell you it is possible! You can price your pieces similarly, if not higher. The key lies in understanding a few important factors.
Before We Dive Into the Formula
First, let’s discuss mindset. It’s all too easy to trick ourselves into believing that we could never attain the levels of success we see in others. Trust me, I’ve faced these doubts too. However, we need to shift our perspective and begin to believe that success is achievable. We all have the ability to make it happen.
If you genuinely believe in the quality of your beadwork, you must be willing to advocate for yourself. This means not selling yourself short. Pricing your work accurately is crucial; pricing too low can jeopardize your business. If your pricing doesn’t reflect the value of your creations, you risk reducing your work to just a hobby. While there’s absolutely nothing wrong with that, if your goal is to become a successful business owner, you need to set aside emotional hesitations and focus on the numbers.
Next, let's break down some important components that should influence how you price your beadwork:
1.Materials Cost: Calculate the total cost of materials for each piece. This includes beads, threads, clasps, and any other components.
2.Time and Labor: Consider how long it takes you to create each piece. Your time is valuable, and you should compensate yourself accordingly. If you’re brand new, I would suggest starting at your state minimum wage but remember do what you believe you’re worth. When I first started out, I paid myself $12 an hour, 6 years ago.
3.Overhead Expenses: Factor in any additional costs, such as tools, workspace, marketing, and shipping fees. How much are you spending on mailers? Jewelry boxes to ship beadwork in? Labels, tape, etc those need to be added in your costs.
4.Market Research: Take a look at what other bead artists with similar styles and skill levels are charging. This can help you gauge a competitive price point.
5.Value Perception: Consider what makes your work unique. Is it your design, the materials, or perhaps a personal story behind each piece? Highlight these unique selling points in your marketing. I highly recommend using this strategy.
Now let’s take a look at the formula I use. Keep in mind you will adjust your costs accordingly and there’s many ways to price your work this is just the way I like to do it that has proven successful for me.
HOURLY RATE + MATERIALS + OVERHEAD COSTS = YOUR PRICE
Let’s break this pair of earrings I created down piece by piece for further detail:
-Swarovski Crystals: $15.50
-Charlotte cut beads: $.85
-Miyuki Delica Beads: $6
-Custom Chain Banding: $5.50
-Swarovski Bicone beads: $20.30
-Tanned leather backing material: $10
-Fingernail Posts Findings/thread/needles: $5
Labor: 3 hours at $30.00 an hour = $90
Overhead Costs= $15
Total= $168.15
Slight markup for potential sale or free shipping= $6.85
Grand Total of $175
When I first started beading this style was priced at $75. 😱
Remember, pricing is not just about covering costs; it’s about valuing your craftsmanship and creativity. As you grow and improve your skills, revisit your pricing strategies regularly. Don’t be afraid to adjust your prices based on demand, your experience, and the quality of your work.
Embrace the process, believe in your talent, and remember that your beadwork deserves to be priced for its true worth. Pricing may seem intimidating at first, but with the right mindset and approach, you can confidently set prices that reflect the beauty and effort behind each piece.
Lastly, I encourage you to sit down to bead a pair of earrings. Look at the time. Write the time down that you are starting. Write down the materials you are using and the cost of each item. Track the entire process. Once you are done making your earrings apply the formula above to see what price you you need to sell them for.
Let me know your thoughts and please feel free to share with a friend!
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