Lets talk about pricing.
I’ve always believed in transparency, and it often in conversation people will mention they saw x, y, z for sale in a stockist and why is their work priced so high when they can make it themselves at home for less. So I thought I would cover here exactly what needs to be included when pricing items as a craftsperson/professional maker. The price you see, the retail price, is not the same as the profit the maker receives. And I think most of you would be shocked by just how little profit we do make on each item, especially at the moment with precious metal prices rising sharply over the past few years, far more steeper than the cost of living price rise. There are many factors for this but it needs its own journal!
Firstly it seems many people don’t realise that stockists will typically take 30-50% of the sales retail price as their commission. This always seems to come as a shock to many but moreso that they haven’t thought about the logistics. Of course they need to be paid, they are providing the physical shop, the staff, the insurance, the lighting, all the other bills to keep the shop running and they are also marketing your work on your behalf (well, the good ones do anyway!). They are a business so cannot do this for free.
If you see items of jewellery which seem really cheap, I can guarantee the maker isn’t costing them up right. I see it so often, especially in stockists when I know the commission they take - the maker is left with pretty much the cost of the materials, nothing for their time let alone any of the other costs. So if an item looks expensive by comparison, its not, it isn’t expensive its just the correct price. Don’t get me started on the ridiculous prices on Etsy “handmade silver”!
I firmly believe a customer should pay the same for an item whether they buy it directly from you, or from a stockist or third party. This means when you buy my work from a stockist I take a financial hit, as their commission greatly eats into the money I would get, so it ends up being very little profit at all. This is why I am selective with my stockists, currently only The Sainsbury Centre for Visual Arts in Norwich, and The Museum of London, Docklands. I am happy to take the hit for stockists that I am proud to have my work shown in.
Secondly, and I’m saying this with kindness, I don’t think someone with little experience and fewer skills could make it cheaper at home, not if they genuinely included all the related costs. They would be slower at making it, and it wouldn’t be finished as well, so it would actually come out more expensive. Its the old saying “I could draw that better”, and the reply “go on then”. Things are easy in your head, but reality is a whole different ballgame.
Lets break some of those costs down;
The obvious ones
Materials
Time
Hallmarking
Goldplating
Packaging
The ones non-professionals forget to consider
Website cost
Domain cost
Public Liability Insurance
Gas, electricity and water bills for the studio/used during making
Studio costs
Tools and equipment costs
Consumables used during making including solder, wet and dry, polish
Commission paid to stockists and suppliers
Commission paid to the website for every sale made
Commission paid to the card reader for every sale made
Membership for any professional bodies or Adobe etc
Designing and development time (something rarely included)
There are many more costs to be considered when pricing any work up as a professional, but you get the gist. It isn’t just a case of calculating the materials and the time, there is a whole world of other costs to include.
Likewise with my workshops and courses. I’m meticulous in costing things correctly, as while this is my career/income I am not here to rip anyone off with anything I do. I love a spreadsheet and that is how I calculate everything - my workshop spreadsheet includes everything such as the consumables, wear and tear on tools and equipment, my time, and gas, then I add the materials for the relevant session and I know the cost is correct.
However, I will admit, I’m still guilty of knocking down the price, therefore not valuing my work or services correctly, because I understand how tough it is financially at the moment but I realise that I am not a charity (although I regularly do and give a lot to/for charity) I am a business so I am trying to minimise this (sorry!). If I could change how much things cost, I would. But until I’m in charge of the world we will have to stick with the facts of current prices…
