[Jewelry making - Article 00426] - Re: [Orchid] Pricing those custom waxes

[David Geller]

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Hi Kevin

>     I have this mental block about charging more than 200 to 250 for a
>     complex wax............... I sometimes spend 40 or 50 hours on one,
>     more time I'm sure than if I were 'on the clock' working for
>     someone else." 

    In essence I think you need to work on your speed. Kate Wolf has
    classes on wax carving as does 

    www.reereacademy.com
    www.newapproachschool.com
    www.katewolfdesigns.com

    You need to pick up some speed. I know your "40-50" hours is not
    typical but if you work 50 hours and charge $250, you're making $5.00
    an hour. At 40 hours for $250 that's $6.25 an hour. 

    All below minimum wage. 

    You should be charging about $65 for your time and that includes
    down time. 

    If you work on a wax for 4 hours and take a 30 minute break before
    the next wax, that 1st wax was 4.50 hours. At $65 an hour that's
    $292.50 for the wax. 

    Even at $45 an hour that's still $202.50. 

    Speed is critical. Yes quality but if making money doing what you
    love is important, then you need some speed. 

    If in your last job you were paid $40,000 a year ($19.00 an hour)
    then you were paid $85.50 for the 4.5 hours. The difference of $85 to
    the $250 you charge ($168.00) has to pay for your overhead and also
    your down time when you can't charge. 

    I do consulting to jewelry stores. I charge a lot more per day than
    I need to pay my daily expenses because the day before I travel and
    make no money traveling and the day after I travel home and make no
    money traveling. So my client is being charged 2 days that they don't
    see because to book me for 4 days is 6 days of my valuable time. 

    You have to charge for the other hours where you don't have a file
    in your hand. $45 to $65 (with today's costs $65 is better) should be
    your hourly rate, and add in 25% to what you thought it took for the
    down time. 

    This is what I found when I did the time study in my store years
    ago. It took 25% longer than I figured and cost 25% more per hour
    because of matching taxes and benefits. 

    Let's look at the $85.50 you MADE at the previous employer. 

    A. 7.15% came out for fica and such ($6.11) 

    B. Your employer matched it and NOW you'll have to do the same 

    C. So out of your $85.50, you will be left with today $73.27. 

    D. Out of the $73.27 you'll have to now pay for 

      Wax
      Tools
      Office Supplies
      Shipping
      Health Insurance
      Other stuff.

    You'll now have to charge enough money for you to say "Holly cow,
    that's a lot of money" 

    But you'll have to charge it and your vendors/overhead will get 3/4
    of it. 

    Geller pricing? Hand carve a wax starts at $530 retail. A little
    over double your wholesale price (keystone). Doesn't mean you can't
    charge more (our top price is about $800 for very, very detailed) but
    for you to make the EQUIVILENT of working for someone else, a 40 hour
    wax must charge at $19 an hour $760.00! 

    Go see what you can do to speed up your skills. 

    By the way, my book is based upon an INEFFICIENT Jeweler. Someone
    who is being interrupted a lot. Not necessarily slow, just ONLY puts
    out 5.5 hours worth of work a day. 

David Geller
JewelerProfit
510 Sutters Point
Sandy Springs, GA. 30328
(404) 255-9565
www.JewelerProfit.com
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