Sunday, 8 February 2009

Top tips to start a Jewellery Making Business

In the current global economic climate with no job security and uncertain futures, many are looking for opportunities to earn some extra cash. Starting a jewellery making business is one such rewarding opportunity both on a financial level and an emotional level.

Jewellery making is fun and addictive. Most jewellers start for fun, making jewellery for themselves. This generally leads to positive comments from friends and family. And before they know it, they are taking commissioned orders and selling their designs. If you love designing jewellery, turn it into a business you can run from home by following these great tips:

  1. Research current jewellery trends - Carry out some research to see what the current styles of jewellery are on the market. Read fashion magazines and window shop at jewellery shops and department sores. Find out how the jewellery is made, what its made from and what it sells for. This will put you in good standing when it comes to creating and designing your own jewellery.
  2. Making your jewellery - Most jewellery are made from the same basic jewellery components and use the same basic jewellery making techniques but it will be your creativity and design ideas that will help you stand out from the crowd. You need to create desirability. This can be done by using beads or a combination of beads in a way that is unique.
  3. Price your jewellery - 'How much should I sell my jewellery pieces for?'. This is the most common questioned asked by beginners and in some ways the most important. If you don't price right, you will not make money. The biggest mistake a lot of jewellery designers make is to undersell their pieces. Many jewellery artists price their work by simply doubling the cost of their supplies - charging £10 for that necklace made from £5 of jewellery supplies. Unfortunately, it’s impossible to have a profitable business with that kind of pricing. It doesn’t cover all of your costs. You need to account for your labour time and skill used in making the jewellery piece as well as the material costs. What is your skill worth? Work out your hourly labour rate. This could be £20/hour (of course, your own labour rate may be much different, depending on your reputation, your speed, and your skill level).
  4. Simple jewellery pricing formula - Price = material costs x 3 + pro-rated hourly labour rate. For example the necklace you just made cost £5 in jewellery supplies and took you 30 minutes to make. Using the formula Price = £5 material costs x 3 + £10 labour (Your 30 minutes of labour equals half an hour. So half of your £20 hourly labour rate equals £10 of labour on this necklace. This gives you a selling price of £25.
  5. Market price of jewellery - An additional step in using the jewellery pricing formula above is to take into account the following to adjust the the resulting price: (a) what will your target market be prepared to pay; (b) how unique is the jewellery made; (c) what do shops charge for similar pieces. Remember this is all subjective and the formula should only be used as a guide.
  6. Maximise profits - Remember it can be better to overprice your jewellery and reduce prices than it is to under value and increase your price. Success depends on selling your jewellery high enough to make a good profit and low enough to achieve good sales.
  7. Added value to your jewellery - it is a good idea to consider the use of jewellery presentation boxes and pouches for the display and selling of your jewellery. Not only do they enhance the beauty of your jewellery pieces but they also help increase your sales. Not only would the box protect the jewellery piece, but it also allows your customer to present it as a gift.
  8. Selling your jewellery - Selling your own jewellery requires patience, persistence and thick skin. There are many avenues to follow to sell your jewellery. Here are a few avenues in increasing sales potential:
  • Sell to friends.
  • Sell to co-workers.
  • Sell at a home jewellery party.
  • Sell at a Craft Show.
  • Sell at a Market.
  • Sell wholesale to a Jewellery store.
  • Open your own shop or on line jewellery store.
Remember learning to make jewellery is easy and fun. Make jewellery for fun and profit. The difficult part is standing out from the crowd. As an artist your creativity and skill will help you do this.


Anonymous said...

Thank you very helpful

Anonymous said...

Great tips and very useful info for beginners. Thanks!