[Jewelry making - Article 00670] - Re: [Orchid] The Cost of Holding Out

[Dale Burnett]

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    Hello All, I am a relatively new Orchid member and have been lurking
    for a little while now.  I treasure sitting down to read my digest
    with its wealth of knowledge and expertise.  I thank you all for
    being part of this forum and for your contributions.  I am learning
    a lot.  I have been dabbling with the lapidary arts since I was 12
    and with metalsmithing since high school.  It has been primarily a
    hobby for me but it has truly been my passion for most of my life. 
    It is probably only by several (severe) twists of fate that I do not
    do this for a living.  Since I have been unemployed for the last
    year after being downsized, I have been focusing more of my energies
    in this area and I have been really enjoying getting back to it
    again finally.  I have even been selling some pieces. 

    Anyway, I have been following this thread with great interest.  The
    diversity (now there's an overused word) of opinions regarding
    pricing philosophy is remarkable.  Thusfar I have resisted the
    temptation to throw in my 2 cents worth, as there are many
    Orchidians far more knowledgeable than I.  But alas, I can resist no
    more.  I generally don't let my ignorance stand in the way of my
    having an opinion for very long.  While I do not make a living in
    the jewelry industry, I feel I can respond both from the consumer
    side as well as from some limited sales experience of my own since
    the age of 12. 

    Ron, with all due respect I do not recall anyone advocating fixing
    repair prices nationwide.  Certainly you are correct when you say
    that many local factors must be taken into account when determining
    your pricing.  I don't recall anyone saying anything that would
    contradict this view.  Competition certainly is a factor when
    determining pricing but competition is not limited to pricing alone.
     Competition also extends to quality of work, timeliness, and less
    tangible aspects such as store environment, reputation, and the
    attitude of the jeweler.  I prefer not to think of these aspects in
    terms of competitive factors, but if you consider the elements that
    would make a customer choose your services over those of another
    jeweler then they would have to be considered as such.  I once went
    to have a ring repaired at a local jeweler.  The price was
    reasonable, the workmanship was good, and the repair was timely.
    However, she had such a holier-than-thou and generally snitty
    attitude that I would rather go across town and pay twice the price
    rather than ever go back there again.  I don't even want to run into
    her at the grocery store!  She couldn't compete on attitude. (She is
    no longer in business in this town.)  Everything else being equal,
    it would come down to only price.  Everything else is not equal
    though.  Especially in the jewelry business.  It's not like buying a
    refrigerator.  If I'm buying a refrigerator I'm looking at the same
    refrigerators no matter which store I'm in (can't do this with
    carpeting) and it comes down to price alone.  Certainly you must be
    aware of what others in your area are charging for what service. 
    This does not necessarily mean you must charge the same or less for
    the same service.  You must also be aware of the other competitive
    factors and take those into account when setting your prices. 

    I do not believe that charging what the market will bear and
    charging a fair price are mutually exclusive.  On the contrary,
    unless you are the only option a customer has (I don't think anyone
    has to worry about this), what the market will bear and a fair price
    are the same thing.  A customer's other options will take the
    "competitive" factors other than price into account also.  Charging
    what the market will bear does not mean you are milking the customer
    for all you can.  Charging a fair price also means charging a price
    that is fair to you who are doing the work. 

    The reason jewelry artisans cannot charge the same kind of rates
    that auto mechanics can is because jewelry falls into the category
    of discretionary spending.  If my car breaks, walking is not an
    option so I must pay to have it fixed, whatever the cost.  If my
    ring breaks, I can put it in the drawer and wait for better times. 
    That is just the sad fact of the industry you are in.  This is why
    it can be such a difficult business to make a living at even with
    years of study and great expertise.  But another reason can
    sometimes be that the jewelry craftsperson can be a master at their
    craft but not necessarily be a master at the business end of things.
     There is no shame in that.  But this is where I think David
    (Geller) has made some valuable contributions.  Perhaps you have
    evaluated your market correctly and have set your prices
    appropriately.  If you have and are making a comfortable living
    doing what you love then you are blessed.  If not however, then what
    I get out of reading what David has written is that pricing may be
    an area worth taking another look at. 

    OK.  I'm done now.  I think that was more like 3 or 4 cents worth. 
    Sorry for being so long-winded.  I'll go back to lurking now. 

    Dale Brighton, MI Aspiring jewelry craftsman...metalsmith...jewelry
    artisan...master of...oh whatever, as long as you smile when you say 
it!


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