[Jewelry making - Article 00464] - Re: [Orchid] The cost of holding out

[Jim Reitze]

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    Sorry guys, I just can't stay out of this one anymore.  I've been in
    the repair business for over 25 years.  I am now in a retail
    environment.  In the past I have also done trade work and owned a
    trade shop.  What I really want to do, and I am working at it, is
    break away from that aspect and concentrate on manufacturing my own
    line, only doing selective repairs on the side.  I have found David's
    principles sound great, but like many others, I have a very difficult
    time trying to price my work.  I am trying to get better about that. 

    My take on repair prices - First, I have limited control.  I
    basically lease space in a retail store, do their work first, then
    have time for my own projects.  For the most part, the management
    sets the prices on repair work, and I only have limited input.  So
    far, this hasn't been a real problem.  I think the prices need work,
    some too high, many too low.  But, I am doing OK, and there seems to
    be an underlying attitude of 'we've been doing it this way for xxxx
    years'   What I do find, though, is that while David is right about
    the trust angle, price is important to these folks. Not so much from
    a competition angle, but from a simple dollar angle. I don't usually
    listen to the argument of 'the guy down the street will do it for ',
    I just send them down the street.  The nice ones will get an
    explanation of why he might be able to do it for less than I can, and
    I will tell them that I simply cannot do it for less than I am
    charging and be profitable.  The nasty ones just get sent on their
    way.  Not politically correct, perhaps, but I really have no patience
    for mean types trying to badger or shame me into dropping prices. 

    There is a real problem, though, especially in todays economy, with
    people (at least our average customer) simply not wanting (or being
    able to) pay for good repair work.  They have low cost pieces and
    want low cost band-aid repair work.  Unfortunately, our store just
    does not draw a lot of high end customers.  So, for the time being, I
    take what I can get and build for the future. 

    As for pricing my products, I think finding the right audience is
    critical for getting the right price.  Again, our store just doesn't
    do it, and as I develop my line I am trying to find higher end shops
    and galleries to represent me.  My production pieces suffer in our
    shop by being put next to items that are bought by weight from
    offshore manufacturers.  Most of our customers will buy one of those
    charms rather than mine, and the decision is often based simply on
    cost.  They are simply not recognizing, or caring, about the benefits
    of owning handcrafted pieces of more unique design. While I try to
    get my prices up high enough to be profitable, all the formulas in
    the world won't help when the right audience is down the block in
    another shop.  I also sell wholesale on occasion, and there I must
    be sensitive to the retailer's markup.  Kind of stinks that I do the
    work and make little profit, he buys my stuff and makes a huge
    profit, but that is the nature of the business.  I know I can't sell
    at a loss, but here I need to balance low margin with high volume,
    and count my blessings that the risk is now his.  He has to turn the
    stuff, and I have already made my money without having to hold
    inventory. 

    Jim from the mountains of NC, where it is warming nicely, and the
    motorcycles are out from under the covers. 



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