Podcast Summary: Success With Jewelry

Episode 131: Laryssa and Liz Interview Hilary Halstead Scott of Halstead About Pricing

Release Date: May 19, 2025

Introduction

In Episode 131 of the Success With Jewelry podcast, hosts Laryssa Wirstiuk and Liz Kantner delve into the crucial topic of pricing strategies for jewelry designers and entrepreneurs. They are joined by Hilary Halstead Scott, the second-generation president of Halstead, a renowned jewelry supply wholesaler with over 50 years in the industry. Bringing her extensive experience and an MBA, Hilary offers invaluable insights into developing sustainable pricing models, factoring in rising metal costs, and effectively communicating value to customers.

Understanding Common Pricing Mistakes

Hilary begins by addressing the common pitfalls jewelry designers encounter when pricing their work.

• Overreliance on Formulas: Hilary emphasizes that while pricing formulas are helpful, they shouldn't be treated as rigid rules. "Don't be ruled by the formula... pricing, ultimately, as a business owner, it is up to you" (00:55).

• Excluding Overhead and Admin Time: Many designers neglect to include all overheads, such as rent, utilities, software subscriptions, and administrative tasks. Additionally, time spent on design and prototyping often goes unaccounted for. "A lot of jewelers leave out... hours on sketches that you're not accounting for" (02:17).

Standard Pricing Formula and Overhead Integration

Hilary outlines a standard pricing formula and the importance of incorporating overhead costs.

• Basic Formula: Materials plus labor time, multiplied by two for wholesale, and again by two for retail. "The most standard that I see is accounting for your materials plus the labor time that goes into a piece, multiplying times two to get to your wholesale, and multiplying times two again to get to your retail" (04:04).

• Adding Overhead: Beyond the basic formula, overheads should be included to ensure profitability. Hilary suggests dividing monthly overhead expenses by the number of pieces sold to determine an additional cost per piece. "If you run your monthly numbers and it's $82 of overhead, then you should be adding $82 to the price of your pieces" (06:35).

Factoring in Labor and Design Time

Determining a fair hourly rate for labor is pivotal.

• Benchmarking Wages: Use online resources like Salary.com to find standard wages for jeweler positions. "The national number for that right now is $25 an hour" (09:14).

• Differentiating Admin and Bench Time: Separate administrative tasks from production work to accurately assign costs. "Your admin time is your designing, your prototyping, your marketing... everything that goes into your business outside of that time at the bench" (08:44).

Adjusting Pricing Based on Market and Volume

Hilary discusses adjusting prices to align with market expectations and sales volume.

• Market Alignment: Regularly compare your pricing with competitors to ensure competitiveness. "Once a year you need to do a little health check on if your prices are in line with what's out there" (18:15).

• Volume Goals: Use pricing formulas to set sales volume targets that make your pricing sustainable. "You can use this as a way to set goals... what do I need to get to in terms of a volume goal where it does start to become viable" (11:07).

• One-of-a-Kind vs. Production Pieces: Differentiate pricing strategies for unique versus mass-produced items, ensuring that design and production time are adequately covered. "One of a kinds... you need to be selling at a certain price point to make that viable as a business" (13:28).

Handling Rising Metal Prices

The conversation shifts to the volatile metal market and its impact on pricing.

• Market Volatility: Metal prices fluctuate due to various factors, and jewelers must navigate these changes without panicking. Hilary advises against hoarding metals, as market conditions can change rapidly. "Do not gamble with the metals market. You will always guess wrong" (20:09).

• Strategic Purchasing: Purchase based on current sales and trends rather than reacting to media hype. "Let your business dictate what you're buying in terms of supplies and materials" (21:55).

• Opportunities in Volatility: Use increased media attention on metals to market your jewelry as valuable investments. "If you pivot your marketing and really start emphasizing your jewelry as investment, as high value, as precious... that works" (22:30).

Communicating Value to Customers

Effective communication is key to justifying your pricing.

• Direct to Consumer (DTC): Focus discussions on the value and story behind your work rather than prices. "Keep the conversation focused on the value, not the price" (27:03).

• Wholesale Relationships: Position yourself as a valuable partner by offering solutions and maintaining flexibility. Consider capsule collections or limited editions to meet wholesale needs without disrupting your brand. "Offer valid information validation and you offer solutions. And this is a time to really set yourself apart from other suppliers" (27:03).

• Handling Price Objections: Develop resilience to price criticism by reaffirming the quality and uniqueness of your work. "Thank you for the feedback. Maybe my work isn't for you. I understand. And just move on" (16:24).

Advice for Overwhelmed Designers

As the episode concludes, Hilary offers encouragement and practical advice for designers feeling the strain of pricing and market challenges.

• Lean on Community and Mentors: Seek support and guidance from experienced individuals and fellow designers. "Lean into your mentors, lean into your community. You're not the only one going through this" (29:01).

• Maintain Commitment: Emphasize the importance of passion and dedication to weathering tough times. "If you love your business, if you're committed to it, you're gonna see this through and you're gonna be okay" (29:01).

• Utilize Resources: Engage with Halstead’s educational materials and community resources to stay informed and grounded. "We offer a reference blog on volatility in metals markets... as a good resource" (30:16).

Conclusion

Episode 131 of Success With Jewelry provides a comprehensive guide to pricing strategies tailored for jewelry designers. With Hilary Halstead Scott's expert insights, listeners gain a deeper understanding of balancing formulas with practical business considerations, navigating market volatility, and effectively communicating the value of their creations. The episode serves as a valuable resource for both emerging and established jewelry entrepreneurs striving for sustainable success in a competitive industry.

Notable Quotes

• Hilary Halstead Scott:

  • "Don't be ruled by the formula... pricing, ultimately, as a business owner, it is up to you." (00:55)
  • "Do not gamble with the metals market. You will always guess wrong." (20:09)
  • "Keep the conversation focused on the value, not the price." (27:03)
  • "If you love your business, if you're committed to it, you're gonna see this through and you're gonna be okay." (29:01)

• Liz Kantner:

  • "Marketing is a vital business expense, the same way it is to have the lights on in your studio." (08:11)
  • "Like all these designers posting the rising metal cost and leaning into the hyperbole." (27:15)

• Laryssa Wirstiuk:

  • "Creating a sustainable business with the metal prices... not setting yourself up for a sustainable business." (12:22)

Resources Mentioned:

• Halstead’s Interactive Pricing Worksheet: An online tool to help jewelry designers calculate and adjust their pricing strategies.
• Halstead’s Reference Blog on Metal Market Volatility: Educational content to keep designers informed about market trends and strategies to manage stress and pricing adjustments.

For more insights and resources, visit successwithjewelry.com.