[Jewelry making - Article 00808] - Re: [Orchid] Price Point Definition

[Nanz Aalund]

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>     'Price point' just means the retail price. It is also often used
>     to refer to a general price range. 

    Close but Not quite. Price Point means a little more than just a
    good retail price. "Price point" in manufacturing and when dealing
    with corporate buyers is an indication that each party involved will
    be able to make their mark-up on the item And the jewelry will still
    fall into the good (perceived affordability) retail price range. In
    other words a good price point really means there is greater
    profitability on specific "in demand" products. 

    Lets say you figure out an easier manufacturing method for an "in
    demand" jewelry item, so your costs to make this item drop by a
    quarter, you give your buyer a little discount and they can still
    charge their retail customer the higher price. Your jewelry item is
    now the one with the better price point. 

    Also, "Perceived Value" has a lot to do with price points. If you
    put 22k trim on a sterling silver ring the customer will perceive a
    greater value to the ring and you can charge a higher price for a
    ring which didn't cost that much more to make thus you make a better
    profit. Giving you a better price point on the 22k trimmed ring, than
    on a plain silver ring. 

    Understanding this concept is how David Yurman has made a fortune!

Nanz Aalund
Associate Editor / Art Jewelry magazine
21027 Crossroads Circle / Waukesha WI 53187-1612
262.796.8776 ext.228

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