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Why Does My Natural Jewelry Cost 30% More??

Falling Rocks Necklace

Falling Rocks Necklace, Red to Purple

First, I want to say that a price increase for my natural jewelry is not something that I take lightly. Second, the short answer to the price change is that a small business expert whom I trust implicitly gave me some great advice and I took it. (The long answer is the rest of this post!) Lastly, I want to assure you loyal friends that you can still get any piece of my natural jewelry for the original price through the end of April (my birthday month!)

Use the coupon code LOYALTY for 30% off

here on jennyhoople.com,
in my Etsy shop for natural stone jewelry
or in my Etsy shop for men’s surfer jewelry!

Now who is this small biz expert and what did she tell me? Tara Gentile is a business blogger I’ve been following for a while and she recently published a blog post claiming that “88.2% of Business Owners Should Double Their Prices”. I knew that she’d been consulting one on one with Etsy sellers at the Etsy Success Symposium the other day, so I read the post (knowing it would probably apply to my handmade jewelry business.)

I left a comment with my pricing formula and asked her if it was enough. She answered right away and we commented back and forth a few times! The good news was that I was pretty close with my prices, I wasn’t going to have to double them, and I hadn’t been giving away my unique natural jewelry for peanuts! But, I hadn’t really been accounting for all the time I spend photographing and marketing (about half of my time!) and I hadn’t been adding in a little profit margin to grow my business with.

Tara suggested paying myself more per hour and using the pricing formula that Megan Auman (another awesome business blogger!) uses:

(Materials + Labor + Overhead + Profit = Wholesale) X 2 = Retail

(Notice that the “labor” is calculated as the actual time it takes to make a piece of jewelry, which is why she had me raise the hourly wage from $16/hr to $25/hr. to account for the other half of my time that I’m spending photographing and blogging and etc!) When I sat down and calculated it out, I was relieved that I didn’t need to double my prices, but

I was convinced that I needed to increase them by 30%

to get me into the ballpark of running a sustainable business.

So here we are! I really believe in transparency and truth and trust, so I wanted to lay the price increase right out on the table. It was scary and felt like fingernails on a chalkboard to do it, but now I feel really good about having done it! For any handmade sellers out there, do yourself a favor by checking out Tara’s post on pricing – and don’t just read it, follow her advice! Do it. Press the button and take the first step toward a sustainable future for your business. A future filled with hard, meaningful work and getting paid fairly for it! You’re worth it!!

10 Comments

  • I have been making jewelry for 16 yrs and have become so disheartened by what I see on Etsy, etc. There are very few people who know how to price there items.
    Thanks you for posting this article.

    • I know what you mean, Marlene! I think a lot of people aren’t treating themselves as well as they should. I’ve even seen successful sellers, (in the top 100 Etsy jewelry sellers) who often complain that they aren’t sure all the work is worth what they make. That’s terrible!

  • Much needed info for me. Makes me feel better about the price I set my book collections at–though now I think they are underpriced, not over!

  • I respect you so much for this post! As an “up and coming” who hopes to have that sustainable business, I am so disheartened by the low pricing I often see on Etsy and elsewhere. I guess many people are just looking to cover materials to keep their hobby going. I also appreciate you sharing how you came to your formula. Thanks for the advice!!

  • Thanks so much for this post! I just opened my Etsy shop back in January and just had my first booth at a local festival this past weekend. I did a fair number of sales, but had one customer tell me I need to raise my prices. Thinking about how much time and effort I put into prepping for the show and making more pieces, etc., I think I need to do this. I am starting to research formulas, etc. and came upon your article and links to Tara’s info – thanks so much! This is really helpful. I have to do some figuring, but will be putting an increase up soon. I love how you explain to your customers why you are doing it as well (I have a blog and will do a post on it, too…)

    If you have time to pop by my shop and take a peek at my current products/prices, let me know what you think. I would love some direct feedback from someone who has done this already. http://www.etsy.com/shop/ccreechstudio If not, no worries. Thanks again!
    Carol

    • Hi Carol :D Glad you found the post helpful :) Love those wrap bracelets! If you can get all the pictures to be as good as (and have the same quality of light) as in this pic http://www.etsy.com/listing/94379431/flower-amethyst-leather-wrap-bracelet then your shop will be gangbusters!! As far as your prices go, it’s really hard for me to know what you should charge because I don’t know how long they take to make or anything. Follow the formula though and don’t forget to add in the % for profit like Tara and Megan suggest! I believe in formulas :D

      Good luck!
      Jenny

  • My husband was right! Dang it. I mean sweet, more money! Great formula! Honestly it never occurred to me to count the house I spend posting, photographing, and networking into my hourly pay.

    I completely concur! Well done :) thanks a million

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