Why Under-Pricing Your Jewellery Is Losing You Sales
We all know that pricing is a challenging area for jewellers and the answer that many of us turn to is just to under-price a little, in order to make sure we are not over pricing…
Seems fair enough…
After all we do want and need sales. BUT here’s the thing…
Under-pricing can actually (and often does) prevent serious buyers from making a purchase.
And the people you are pleasing by under-pricing are always going to be looking for a bargain so they aren’t the customers your business needs in the long term anyway. Plus they are often the most challenging to deal with!
It is all about perceived value
Jewellery is a precious/luxury item and it is often also an emotional purchase, so we want to know that it has value.
That it is special.
Customers don’t want to feel ripped off, but they do want to feel they are investing in something amazing that is going to make them or their loved one very happy. They realise a valuable piece of jewellery costs money, in fact they expect it to, even want it to and may well have a budget in mind.
DON’T LET THE FEW CUSTOMERS WHO THINK YOUR WORK IS EXPENSIVE LET YOU LOSE THE ONES WHO WANT TO PAY YOU WHAT YOU ARE WORTH!
I know its heart wrenching when someone says that your work is too expensive. Especially when you have worked hard on it for potentially hours, worked out your pricing and know deep down that it is fair.
Know that it happens to us all AND it is OK for them to say that – what they are really saying is, I am not your ideal customer. Perfect! We are now narrowing down who is. So in your mind you can thank them for pointing that out and use it as a chance to explain a little about your processes. You may even convert them to the handmade way! If not, no problem.
An interesting parallel for you…
The other day I was looking to buy a piece of art work to put on my wall in my home. Etsy was my first point of call, I wanted an individual piece hand-painted by an artist. I scrolled through the images, some pieces were nice but seriously under-priced…
This is a special purchase for me, something I am going to look at every day, that my son is going to see around the house growing up, that is going help set the atmosphere for a room we spend a lot of time in, so I expect to invest a bit in that.
There were a few pieces seriously out of my budget, but most way under, and as such, even though they were nice I didn’t want them. They aren’t special enough.
People will be thinking this about your jewellery too.
You can of course argue that if you love a piece and can afford it why do you need it to cost a lot to feel good about it. I do agree with the premise and we all love a bargain on a TV or something generic. However, when it comes to something you want to treasure, that you are specifically sourcing handmade, you want to feel good about the purchase all round. Knowing that the artist is well paid, that you have something precious and even that you had to sacrifice a little to get it.
A lot of this is about mind-set, there are people out there more than happy to pay for what you have to offer, so don’t get in their way by under selling your amazing work.
The other thing that it is important to remember is not to feel sorry for your customers.
There are many things we need to do and feel for our customers, gratitude, and service, helping in anyway we can. But when it comes to pricing, another common reason for under-pricing is the thought that, they can’t afford it.
If they are buying a piece of handmade jewellery, then money is not the issue!
It all comes down to value and how you communicate it. We can’t just charge any amount and expect people to buy it, but instead of under-pricing we can invest time in creating an amazing brand that really communicates the value of your work so that you feel confident to charge the right amount.
Staying strong with your pricing is not always easy. some things that will really help are…
1. Building a strong and unique brand that communicates your value to your customers.
2. Creating unique jewellery with your own signature style (not something they can get easily elsewhere)
3. Building up your confidence as a jeweller, in your skills, selling experience and knowing that you are always worth far more than you know. We will keep reminding you of this one too!
For more support with your pricing and selling your work take a look at some of the resources below:
PRICING YOUR JEWELLERY FOR PROFIT TUTORIAL:
HOW TO SELL YOUR JEWELLERY WITHOUT BEING SALESY (VIDEO PODCAST):
And a quick reminder that we hare just two LIVE sessions left on the ‘Photograph Your Jewellery Masterclass’ – you can sign up to join in one for free here >
And if you would like to join us and the community for year-round support in your jewellery business, you can find out about becoming a member of Jewellers Academy, here >
Have a great week jewellers!