{"id":34881,"date":"2017-09-27T05:03:59","date_gmt":"2017-09-27T09:03:59","guid":{"rendered":"https:\/\/www.shapeways.com\/blog\/?p=34881"},"modified":"2017-10-13T14:51:14","modified_gmt":"2017-10-13T18:51:14","slug":"7-critical-steps-growing-profitable-jewelry-business-part-2-pricing","status":"publish","type":"post","link":"https:\/\/www.shapeways.com\/blog\/7-critical-steps-growing-profitable-jewelry-business-part-2-pricing","title":{"rendered":"7 Critical Steps to Growing a Profitable Jewelry Business, Part 2: Pricing"},"content":{"rendered":"

Part 2: How to Price Jewelry for Wholesale<\/strong><\/p>\n

In January 2012, retail stalwart JC Penney introduced a radical new concept, stemming from the mind of then-CEO, Ron Johnson. Johnson\u00a0\u2014 the man responsible for Target\u2019s 1990s merchandising renaissance and the retail mastermind behind the Apple Store \u2014 proposed that discounts and coupons would be eliminated from JC Penney. Rather than relying on what he deemed \u201cfake prices\u201d inflated to make markdowns more appealing, Johnson proposed a \u201cfair and square\u201d approach to pricing: all prices would automatically be at least 40% lower from the start. No more coupon cutting, no more 4 a.m. lines on Black Friday, no more pulling a fast one on the customer. This \u201cfair\u201d approach seemed so logical, but, as Johnson soon realized, <\/span>people <\/span><\/i>are often not. In the fourth quarter of 2012, JC Penney\u2019s same store sales fell 31.7% over the previous year and and the company reported a net loss of $985 million. In the end, Johnson was asked to leave and the JCP coupons made their way back into weekly circulars. <\/span><\/p>\n

Aside from suggesting that even the creator of the Apple Store can make mistakes in business, the point is that pricing matters<\/strong>. It is the primary driver of buyer behavior and can affect so many facets of your business, from brand positioning to marketability, to the money you make for yourself and for your business.<\/span><\/p>\n

In this second part of our 7-part series on <\/span>Growing a Profitable Jewelry Business<\/b><\/a>, we’ll provide a primer on <\/span>Pricing<\/b>, breaking down price into its basic components. This segment will also make an introduction to pricing strategy, focusing on the Keystone method, which is the fundamental pricing structure for the <\/span>wholesale<\/b><\/a> world we introduced in our <\/span>previous installment of the series<\/b><\/a>.<\/span><\/p>\n