Establishing a selling price for homemade bead jewellery for a show is the same as establishing a price for selling handmade jewellery online or in boutiques. Calculating the overall costs before factoring in a profit is a crucial step, whether you are selling jewellery at a show or elsewhere. Selling at a show can be more expensive than posting designs online or placing products with boutiques due to the overhead costs involved with booth rental and advertising materials.
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Things you need
- Bead component prices
- Other jewellery-making material prices
- Exhibition costs
Calculate the cost of the materials in each piece of your homemade jewellery. This cost factor will include the beads, pendants, charms, threading material, clasps and other findings such as end caps, spacer beads and earring components. Any item that you incorporate in your homemade jewellery designs should be included in this cost calculation.
Establish an hourly wage for designing and constructing your homemade jewellery. There are several ways to calculate an hourly wage. Skill level, reputation and education can factor into the overall number. You could also calculate a minimum hourly wage based on the amount you would need to pay your monthly expenses if you made jewellery full time. For example, if you need £1,950 each month to live, divide 3000 by 160 to establish an hourly wage based on working 40 hours each week during a four-week month. Another way to determine on an hourly wage for creating homemade jewellery is to use your current wage from your full-time job. For example, if you are currently earning £16 per hour, use this number as the hourly wage for the jewellery designs.
Establish labour costs for each jewellery piece by multiplying the number of hours spent on designing and constructing the piece of jewellery by your hourly wage. For example, if you spent 30 minutes making a pair of beaded earrings and your hourly wage is £13, the labour cost for the earrings is £6.
Establish the typical overhead cost for your jewellery business as a percentage. Typical overhead costs include a prorated amount of your monthly rent and utilities based on the area of your home where you make the jewellery. Advertising, insurance and transportation are additional factors in a typical overhead. To get the typical overhead percentage, add the costs together for one month's expenses and divide this number by the total monthly labour and material costs. Use the resulting percentage as a factor for your jewellery's sales price. For example, if your monthly labour and materials costs are £1,625 and your overhead costs total £325, your overhead percentage is 20 per cent.
Calculate the special overhead costs for times when you sell your homemade jewellery at a show. Exhibition costs include travel, accommodations, booth rental and entry fees. Add the costs together and divide the number by the total monthly labour and material costs to create an additional overhead percentage for show prices.
Add the costs of materials and the cost of labour for each piece of homemade jewellery. Multiply the total by the typical overhead percentage and then by the exhibition overhead percentage to establish the total costs for selling jewellery at a show.
Add in a profit percentage to the total costs of each piece of jewellery to establish the wholesale price. Base the profit percentage on your skill and creativity. Wholesale prices typically include a profit percentage of between 10 and 20 per cent. For example, if the total costs for selling one beaded necklace at a show is £7, and you would like to establish a wholesale price with a 10% profit margin, multiply 12 by .1 to calculate a wholesale profit of 70p. The wholesale price for the show is £8.50; double the wholesale price to establish a retail price for the show.
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