How to Price Homemade Bead Jewelry for a Show
Establishing a selling price for homemade bead jewelry for a show is the same as establishing a price for selling handmade jewelry online or in boutiques. Calculating the overall costs before factoring in a profit is a crucial step, whether you are selling jewelry at a show or elsewhere. Selling at a show can be more expensive than posting designs online or placing products with boutiques due to the overhead costs involved with booth rental and advertising materials.
Other People Are Reading
Things You'll Need
- Bead component prices
- Other jewelry-making material prices
- Exhibition costs
- Calculator
Instructions
-
-
1
Calculate the cost of the materials in each piece of your homemade jewelry. This cost factor will include the beads, pendants, charms, threading material, clasps and other findings such as end caps, spacer beads and earring components. Any item that you incorporate in your homemade jewelry designs should be included in this cost calculation.
-
2
Establish an hourly wage for designing and constructing your homemade jewelry. There are several ways to calculate an hourly wage. Skill level, reputation and education can factor into the overall number. You could also calculate a minimum hourly wage based on the amount you would need to pay your monthly expenses if you made jewelry full time. For example, if you need $3000 each month to live, divide 3000 by 160 to establish an hourly wage based on working 40 hours each week during a four-week month. Another way to determine on an hourly wage for creating homemade jewelry is to use your current wage from your full-time job. For example, if you are currently earning $25 per hour, use this number as the hourly wage for the jewelry designs.
-
-
3
Establish labor costs for each jewelry piece by multiplying the number of hours spent on designing and constructing the piece of jewelry by your hourly wage. For example, if you spent 30 minutes making a pair of beaded earrings and your hourly wage is $20, the labor cost for the earrings is $10.
-
4
Establish the typical overhead cost for your jewelry business as a percentage. Typical overhead costs include a prorated amount of your monthly rent and utilities based on the area of your home where you make the jewelry. Advertising, insurance and transportation are additional factors in a typical overhead. To get the typical overhead percentage, add the costs together for one month's expenses and divide this number by the total monthly labor and material costs. Use the resulting percentage as a factor for your jewelry's sales price. For example, if your monthly labor and materials costs are $2500 and your overhead costs total $500, your overhead percentage is 20 percent.
-
5
Calculate the special overhead costs for times when you sell your homemade jewelry at a show. Exhibition costs include travel, accommodations, booth rental and entry fees. Add the costs together and divide the number by the total monthly labor and material costs to create an additional overhead percentage for show prices.
-
6
Add the costs of materials and the cost of labor for each piece of homemade jewelry. Multiply the total by the typical overhead percentage and then by the exhibition overhead percentage to establish the total costs for selling jewelry at a show.
-
7
Add in a profit percentage to the total costs of each piece of jewelry to establish the wholesale price. Base the profit percentage on your skill and creativity. Wholesale prices typically include a profit percentage of between 10 and 20 percent. For example, if the total costs for selling one beaded necklace at a show is $12, and you would like to establish a wholesale price with a 10% profit margin, multiply 12 by .1 to calculate a wholesale profit of $1.20. The wholesale price for the show is $13.20; double the wholesale price to establish a retail price for the show.
-
1
