Pricing jewellery – another update

11 07 2012

It’s been a fortnight since I published the survey, and just over a week since the first update.

As at midnight last night, there were 30 responses and the results are below.

survey results, just after midnight 11th July 2012

A few thoughts I’ve had about the results:

  • the $40+ group are likely to be the more experienced group of makers with a solid gallery presence and/or client base
  • those charging under $20 per hour, please consider if you’re undervaluing your skills!
  • as I mentioned in a previous comment, I wonder if I should have included a ‘I don’t price by a flat hourly rate‘ as an option, for those makers who take a more flexible approach to pricing

Have you found this series of posts useful?

Thank you again to those makers who generously responded to the survey.





Pricing jewellery – update

3 07 2012

It’s been just under a week since I asked for help with an ‘hourly rate’ survey.

To date the post has received lots of fabulous comments and many people have read it (at least according to my traffic stats). Though many seem to be shy about contributing to the survey.

The results as at 9:30pm last night are below, from only 16 responses (thank you to the few who voted):

survey results, 930pm 2nd July 2012

I feel it’s important that jewellers, especially those emerging and starting to figure out how it all works, gain a feeling for what the market does. And rarely would any of us feel comfortable enough to impose upon another jeweller and come outright and say “so, what do you charge per hour” … or is that just me?!

If you haven’t already, please do contribute to the survey below (sorry to international readers; this is only in AUS$, other currencies will confuse the results with exchange rates and such). I’ll update again in a week with the results at that time.

Thank you!
(Also: I’ve added a link to the survey in the sidebar … )

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And in an excellent case of good timing, I spotted this on Northcity4′s facebook page.
It took a little searching, but I think the original text may have come from here.

one to remember!

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Pricing jewellery … continued

29 06 2012

Further to my previous post … a related issue is the inclusion of ‘manufactured’ versus ‘handmade’ components. The main argument being that including a manufactured component would inevitably reduce the price of the piece.

Typical components considered here include brooch pins, clasps, cufflink backs, chains … and just recently I found that even ready-made bezel settings can be bought! Of course there are lots and lots of components that can be bought… it’s just that I haven’t needed to look before.

If I bought a sterling silver manufactured 20mm bezel ‘cup’ it would cost less than $5 … but the time it takes me to make, even if I only charged $20 an hour, would be way more than that.

At RMIT we were instructed NOT to include any manufactured components in our pieces. Naturally, we were there to learn how to make and knowing how to make such components was important.

I very much doubt anyone would consider including a manufactured component in an exhibition piece – but where is the balance for ‘production’ pieces?

What are your thoughts??

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SURVEY

Also, I’ve had lots of people reading my previous post, thank you so much! But not many readers have contributed to the survey. Please please please do vote and indicate what you charge for your hourly rate. (Sorry to international readers, but this is only in AUS$ … other dollars will confuse the results!!)

It is so interesting to everyone, especially to emerging jewellers. I cannot see who votes for what – so your privacy is totally assured!

Thank you so much to those who have contributed to the survey. The results are fascinating so far. There seems to me to be a pretty obvious split – I wonder if that’s emerging versus experienced jewellers, or full-time makers versus those who supplement their income with other work… so interesting.

And if you want to see the results, just click on “View Results” at the bottom of the survey. Please do let me know if you’ve experienced any troubles.

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Pricing handmade jewellery

27 06 2012

I’ve been considering how to price my jewellery recently.

So the formula I’m using is:

  • Wholesale price =
    time * cost per time + materials cost + ‘fluff’ (contribution to overheads)
  • Retail price =
    wholesale price + gallery commission + GST

A quick note for buyers of handmade jewellery: if the wholesale price a maker needs to charge to break even is $315:

  • if commission is 30%, then retail price is $500 ($50 GST and $135 commission)
  • if commission is 50%, then retail price is $700 ($70 GST and $315 commission)

To an inexperienced eye the retail numbers may look quite high compare to the artist wholesale price – but there is a lot retail spaces and galleries do to support makers. This isn’t the focus of my post though …

What I do what to ask about is what makes a reasonable ‘hourly rate‘?

The minimum wage in Australia is $15.51 per hour (pre-tax; link); so that’s obviously the absolute minimum (especially considering someone working on the minimum wage is paid for every hour they work … and it’s most unlikely this is the case for makers).

Say a ring takes three hours to make entirely by hand (not cast and no pre-manufactured components etc), and materials cost $50, and say a nominal contribution to overheads (‘fluff’) is $20 per piece. So:

  • if hourly rate is $25, then wholesale is $145, and retail at 50% commission is $322
  • if hourly rate is $30, then wholesale is $160, and retail at 50% commission is $355
  • if hourly rate is $35, then wholesale is $175, and retail at 50% commission is $389
  • if hourly rate is $40, then wholesale is $190, and retail at 50% commission is $422

The differences here are not especially significant to the maker, though the $100 difference in retail price may be the difference between a buyer wanting to spend the money on that piece.

It becomes even more fraught for the maker if we consider the more complicated pieces that take many many hours of making; especially those made for exhibitions.

For example, I’ve just made a piece that took me over 15 hours of work. None of that time was wasted, it wasn’t exploratory or failed attempts (which one wouldn’t add to the time total anyway!) … it was all legitimate hard work using skills I’ve spent years learning and practicing. If I decided time cost was $25 per hour then the wholesale price would be $445 (as above, say materials are $50 and ‘fluff’ is $20 again) and the retail (at 50% commission) $989; if I decided time cost was $35 per hour, the wholesale price would be $595 and retail $1322. Big difference to a potential purchaser.

Surely a maker has a reasonable right to expect more than minimum wage yes?
Further, I’m pretty darn sure painters have a reasonable hourly wage yes?
My mowing man charges $50 for half an hour…

Even further, if we were to ask someone else to do this work for us, we’d need to pay them (we may do things for free for our work, but someone else won’t work for us for free!) – wouldn’t we expect to pay more than minimum for these skills?
If a maker is self-employed, there’s ‘superannuation’ and insurance etc. to consider.

I sometimes wonder if many makers undervalue their worth and price themselves too low….

Would you help me?
If you’re a contemporary jewellery maker, would you (anonymously) tell me approximately what you include in your wholesale prices as your ‘hourly rate’? As always, comments are more than welcome!


Update (3rd July): if you cannot see the survey here, it is likely to be showing in the updated post; actually, this wasn’t on purpose! this is my first time using polls, and it seems that if I copy it into another post it may actually move it if you happen to have both stories open at once (to prevent duplication issues I expect) … it’s still a mystery at this point.

PS. for beginners, a couple of interesting posts on pricing handmade objects and things to consider: here, here, here, here.

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Update (1st July): please do take some time to look at the comments on this post; it’s wonderful so many have taken time to contribute

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