Can't make a living from handmaking?
Are you struggling to make a living out of your handmaking? Well , if you are focusing on making more, faster, then you're probably concentrating on the wrong thing. And, you will most likely never solve your income problem that way. You need to know about a little secret known to the best entrepreneurs... and every traditional jeweller. Let me explain...
A while back, I read about a property developer who only invests in the most exclusive postcodes. His rationale? The labour costs the same whether the end result can be sold for £500 / sq foot or £5000. Likewise, the materials. Yes, more expensive variants are demanded but they are justified by the higher rate of return. By only operating at the top of the market, this entrepreneur makes more on every pound of labour and material invested.
You can do the same. In fact, old school jewellers already know this. Take a diamond engagement ring. What are they selling? The setting? The platinum band? Of course not. It's all about the diamond. The ring is just the vehicle to sell the diamond. For the super rich, jewellers create pieces to 'carry' ever expensive combinations of stones. Look at celebrity bling; it's dripping with high quality stones. And, on each stone the jeweller makes a wholesale-to-retail mark up. A margin that far outweighs the value added by the jeweller's labour.
Think about it. You can make a necklace in silver with cubic zircona and sell it for £39.99. You could make the same necklace and use diamonds and white gold or platinum instead and sell it for £3999. Either way the production time/labour is going to be very similar. And, the necklace may even look very similar. But, the profit couldn't be more different. Instead of making £25 - £30 you might make £2500 - £3000!
Like all great ideas, there is a downside. You are going to need more money (working capital) because more money is going to be tied up in your stock. Plus, you've got to be able to achieve the right level of 'finish'. And, if your designs don't sell, this probably won't help them. That said, if you are producing stuff that sells , but find you just can't produce enough quickly enough to make a living, here is an answer. And, best of all, it's one that generations of jewellers (and entrepreneurs) know works!
A while back, I read about a property developer who only invests in the most exclusive postcodes. His rationale? The labour costs the same whether the end result can be sold for £500 / sq foot or £5000. Likewise, the materials. Yes, more expensive variants are demanded but they are justified by the higher rate of return. By only operating at the top of the market, this entrepreneur makes more on every pound of labour and material invested.
You can do the same. In fact, old school jewellers already know this. Take a diamond engagement ring. What are they selling? The setting? The platinum band? Of course not. It's all about the diamond. The ring is just the vehicle to sell the diamond. For the super rich, jewellers create pieces to 'carry' ever expensive combinations of stones. Look at celebrity bling; it's dripping with high quality stones. And, on each stone the jeweller makes a wholesale-to-retail mark up. A margin that far outweighs the value added by the jeweller's labour.
Think about it. You can make a necklace in silver with cubic zircona and sell it for £39.99. You could make the same necklace and use diamonds and white gold or platinum instead and sell it for £3999. Either way the production time/labour is going to be very similar. And, the necklace may even look very similar. But, the profit couldn't be more different. Instead of making £25 - £30 you might make £2500 - £3000!
Like all great ideas, there is a downside. You are going to need more money (working capital) because more money is going to be tied up in your stock. Plus, you've got to be able to achieve the right level of 'finish'. And, if your designs don't sell, this probably won't help them. That said, if you are producing stuff that sells , but find you just can't produce enough quickly enough to make a living, here is an answer. And, best of all, it's one that generations of jewellers (and entrepreneurs) know works!
Labels: handmaking living
posted by Suggy at
16:17
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