How to Price a Rhinestone Product or Job in 3 Easy Steps

Let’s face it… you are in business to make money.  Pricing your product or job properly is key.  It is finding the right balance where the customer will buy and you will make money.   We get many calls from people who are starting various businesses or expanding existing businesses that want to incorporate rhinestones, jewels, nailheads and trim.  Of course, Swarovski or Preciosa rhinestones are first on their mind... but does it make business sense?  Well, it depends on the answer to the question: can you make money using a particular stone?

If you are in one-of-a-kind, custom, made-to-order business, use whatever rhinestones and jewels you or your customer want.  Work with your customer’s budget.  Look at the price you need to charge them so you can make money and work from there.  If they want Swarovski crystals, but their budget does not allow for you make money on-the-job, you need to find ways to reduce the price.  You can do it by either less elaborate work and or fewer stones or explain to them that you can create a fantastic sparkle with less expensive stones and achieve great results. 

If you are in a general “mass” production business your pricing is a bit trickier.  Regardless, you need to price your product (s) correctly so you can make money. 

So here we go…

A REBA™ rhinestone loaded shirt at a department store costs somewhere around $60 - $80.  The shirts' design has hundreds of small rhinestones or nailheads.  The design is created with hotfix stones or hotfix nailheads that are inexpensive.  To have the same design with a Swarovski or Preciosa crystals will bring price of the shirts to the high hundreds and not many would buy them.  But the shirts are selling and selling well.

Why are they selling?  They are selling because the design is attractive and the shirts sparkle.  The company created an elaborate design at a price that leaves them with profits.  You can do the same by using, for example, RG Premium crystals.  These rhinestones' grade is way above the department store ones.  Using them will elevate your design giving it a high-end look and will allow you to make money.  If you glue, our Bright Choice rhinestones will get you super sparkly.

When you mass-produce, you need to answer the question:  Are they buying my product because it sparkles or because it is Swarovski?  Most people buy everyday items because they sparkle.  Many WANT Swarovski because they know the name, BUT, they are NOT willing to pay the price. 

You need to consider the buyer, the venue, purpose or use of the item.  An Example:  A jeans jacket will be kept for a longtime.  So the jacket would tolerate a higher price and higher priced stones.  A person will keep the jacket longer than an everyday T-shirt. 

Research is your key to success.  You need to evaluate:

·         At what prices will your product sell well? 

·         What people are willing to spend on that particular item? If you have a shop on Rodeo Drive, California, the customers will expect to pay a whole lot more than the folks at your local fair, or on Etsy. 

·         What are your competitors charging for similar items?

·         And, if at this magic price, will your business make any money.

How to arrive at a price

This is not an estimate it needs to be as precise as possible.  You need to know what does it costs you to make the item and how long it would take you to make it.  We will explain through an example.  Please note:  This is an illustration only and none of the costs / prices are real.  

Even if you are the only person making the bandannas, you need to consider if you had to pay someone to do this, what would it be for each bandanna?  You, or your employee, need a paycheck.  You are not working for free.  You need to consider the time it takes to make the bandanna and your pay rate.  Simplified:  If you make 5 bandannas an hour and your hourly rate is $20/hour, each bandanna will have a $4.00 labor cost.

So far we have the cost to make our bandana:

·     Materials: $6.00 in materials (bandanna and stones) ;

·     Labor:  $4.00 in labor ;

·     Packaging $0.50;

·  Overhead and marketing expense (web fees, advertising …) need to be calculated and added on a per item basis.  For discussion purposes let say those are $1.00 a piece.