Emotional Aspect to
Real thought must be given to your price setting structure before going into the marketplace. Pricing is not simple, and you will never make a more important decision.
Some jewelry designers feel they can never charge enough while others feel that they are charging too much. If you don't charge enough you won't make a profit yet if you charge too much you will not make a sale.
Try to overcome the emotional problem by realizing the price you charge is not a judgment of your worth as a jewelry designer rather a judgment on the cost to produce the item and what the customers are willing to pay for it.
As a new jewelry entrepreneur you are probably worrying about overpricing your product or service, but you should realize that underpricing can do much more damage. If you are charging too much, you will find out quickly. Potential customers won't be shy about commenting on your high prices.
Price is an indicator of quality. Higher-quality merchandise should be priced relatively high to attain an image of superior workmanship and value.
Most likely, if you are charging a high price, your potential customer will perceive that you are offering something of better quality, and you will attract customers who are willing to pay for that quality.
If overpricing often indicates high quality, underpricing can convey the opposite. A low price tells customers that they better not expect excellent service or fine materials and workmanship.
At first the low price may seem like a fantastic deal, but it also forces the customer to think something may be wrong with the product. Before you determine your prices, decide if low prices are important to your potential customers or would they be willing to pay for products and services which meet their expectations.
Seasoned jewelry designers may find pricing second to nature but they may never have really thought about how to do it. However, they may be losing more on an item without realizing it, because they have never actually figured out their cost.
These jewelry designers are using the emotional approach to price setting which is giving the item a price in which they figured that the customer will want to pay for it.
With experience you will find that pricing becomes easier and you will acquire a "common sense" approach to it.
With this experience you will probably have your own short-cut way of judging costs and setting selling prices, but make sure that you are not short-cutting yourself too much as you may end up losing money.
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