Success With Jewelry Podcast Episode 132: Interview with Sharon Zimmerman on Pricing Strategy for Jewelry Release Date: June 2, 2025
In Episode 132 of the Success With Jewelry podcast, hosts Laryssa Wirstiuk and Liz Kantner engage in a comprehensive discussion with Sharon Zimmerman, a seasoned jeweler and pricing expert. The episode delves into the intricacies of developing a sustainable pricing strategy tailored for jewelry designers and entrepreneurs. Sharon brings her extensive experience in pricing strategy and financial consulting to the forefront, providing listeners with actionable insights and strategies to enhance their business profitability.
1. Introduction to Sharon Zimmerman
[01:12] Sharon Zimmerman:
Sharon introduces herself as the founder of Sharon Z Consulting, specializing in pricing strategy and financial projections for jewelry industry professionals, including designers, casters, and stone setters. With a background as a jeweler and metalsmith since 2003, Sharon leverages her hands-on experience to guide others in establishing effective pricing models.
2. The Necessity of Regular Pricing Audits
[02:18] Sharon Zimmerman:
Sharon emphasizes the critical need for regular pricing audits, especially in light of the volatile fluctuations in gold prices. She notes, "When I looked at gold prices about a year ago, they were roughly about a thousand dollars less than what they are today. That is a huge, huge jump." She recommends that jewelry businesses conduct pricing reviews more frequently than annually—potentially quarterly—to stay aligned with material cost changes.
3. Overcoming Emotional Barriers in Pricing
[03:37] Sharon Zimmerman:
Sharon discusses the emotional challenges jewellers face when raising prices. She shares her initial fears that customers might not follow price increases, stating, "I had not built enough trust with them for them to feel like they could follow me if I had to raise the price of a ring." Through observing customer behavior at in-person shows, Sharon realized that price resistance was minimal, which bolstered her confidence to adjust prices when necessary.
4. Reframing Customer Feedback on Pricing
[05:54] Sharon Zimmerman:
Addressing misconceptions around cost, Sharon explains the difference between "too expensive" and "out of budget." She advises reframing internal dialogues, saying, "They might not be saying that. Oh, wow, no, way too expensive. They might be saying, like, well, I'm not gonna pay for that, and that's fine."
5. Transitioning to Sustainable Pricing Models
[07:12] Sharon Zimmerman:
Sharon highlights the shift from price-conscious to sustainable pricing models. She reflects on the importance of covering all business expenses, including rent, software, and labor. "You have rent to cover, you have expenses to cover… why should that get paid too?" This transition ensures that designers can sustain their businesses while paying themselves adequately.
6. Integrating Fixed Expenses into Pricing Strategies
[19:36] Sharon Zimmerman:
Sharon addresses the challenge of incorporating fixed expenses into pricing. She distinguishes between direct costs (materials and labor) and fixed costs (rent, utilities, software). "Your expenses should be productive for you," she explains, advocating for optimizing expenses to support business growth without directly embedding them into product pricing.
7. Navigating Rising Material Costs
[34:56] Sharon Zimmerman:
The conversation shifts to the impact of rising gold prices on the jewelry industry. Sharon observes a trend of designers reverting to more affordable metals like silver and gold fill due to cost pressures. She notes, "If gold prices ever come down, that pendulum will swing back." Additionally, she discusses the nuanced pricing between platinum and white gold, suggesting that current price parity might make platinum a more attractive option for fine jewelry.
8. Trends in Materials and Consumer Preferences
[38:11] Sharon Zimmerman:
Sharon anticipates shifts in consumer preferences influenced by material costs. She mentions, "Some consumers are like, I won't wear anything except for white metals. Other consumers won't wear anything except for yellow." This segmentation highlights the need for designers to understand their target audience's preferences when adjusting their material choices.
9. Sharon's Journey to Consulting and Financial Literacy
[09:53] Sharon Zimmerman:
Sharon shares her path to becoming a pricing consultant, starting with teaching business planning and financial projections. Her realization of the industry's need for comprehensive pricing strategies led her to develop specialized consulting services. She emphasizes the importance of viewing financial management as a craft, akin to jewelry making.
10. Knowing When to Raise Prices
[32:35] Sharon Zimmerman:
Determining the right time to increase prices is a key topic. Sharon advises monitoring profit margins, stating, "Knowing when to raise your prices is when that ideal profit margin starts slipping." She combines both mathematical analysis and personal intuition to decide when adjustments are necessary, ensuring that pricing remains aligned with business sustainability.
Key Takeaways:
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Regular Pricing Audits: Conduct pricing reviews more frequently than annually to adapt to material cost changes.
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Emotional Resilience: Overcome internal fears about raising prices by observing customer behavior and understanding market dynamics.
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Reframe Feedback: Differentiate between "too expensive" and "out of budget" to better gauge customer responses.
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Sustainable Pricing Models: Ensure that pricing structures cover all business expenses, enabling designers to pay themselves and sustain their operations.
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Optimize Expenses: Evaluate and streamline fixed expenses to enhance business productivity and profitability.
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Adapt to Material Costs: Stay flexible in material choices to respond to fluctuating prices and consumer preferences.
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Financial Literacy as a Craft: Treat financial management with the same dedication as jewelry making, recognizing it as a fundamental skill for business success.
Notable Quotes:
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Sharon Zimmerman on Pricing Audits:
"This is different. This is very different. I think… encouraging that process to happen more than twice a year. Definitely quarterly, definitely." [02:18] -
Sharon Zimmerman on Customer Reactions:
"If they aren't having price resistance, then why would I have a problem raising my prices when I need to?" [04:00] -
Sharon Zimmerman on Fixed Expenses:
"Your expenses should be productive for you." [19:36] -
Sharon Zimmerman on Sustainable Pricing:
"I have this professional skill bolstered by many other professional skills…" [08:30]
Conclusion
Episode 132 offers a deep dive into the complexities of pricing strategies within the jewelry industry. Sharon Zimmerman's expertise provides invaluable guidance for designers aiming to establish pricing models that not only cover costs but also support business growth and personal sustainability. By addressing both the emotional and practical aspects of pricing, the episode equips jewelry entrepreneurs with the tools and mindset needed to navigate an ever-evolving market.
For more insights and expert advice, visit successwithjewelry.com and join the community dedicated to fostering business success in the jewelry industry.