Imitation, Flattery & Dancing on the Edge
I suppose it was inevitable, and in that odd, timeless sort of way your mother always tried to tell you, “a sincere form of flattery”. That’s all well and good, except that this particular (and very peculiar) imitation happens to contain some deadly stuff.
You see EmpowerDesign, recently launched a pricing course for jewelry designers. You may have heard of it. (No? My dear, where HAVE you been, you really must get out more. Well, we’ll forgive you. We have been a bit of a “Joe sent me” kind of thing. You know, friend of a friend, invitation only, what’s the password, do-you-know-the-secret-handshake sort of thing.)
Anyway, this is one exhaustive course. It’s what you get when you add together 50+ years of collective industry experience and an MBA. It’s one of those multi-module shake-you-to-your-core, no-stone-left-unrattled life-changers.
You know the kind.
Anywhoo, along come the “Me too!” brigade, which would normally be both inevitable and expected…. <yawn>…. IF it weren’t for one little (not so teeny thing):
The “advice” given in this (FREE!) little whatever you call it is, um, well… it’s not only wrong, it’s actually dangerous. To whit:
Overhead? Ain’t no thang. Add a little here, a little there, don’t worry about it. Don’t “obsess” over it!!
Readymade off the shelf pricing software ROCKS! (are those affiliate links we spy?) Never mind about learning HOW pricing works. Let the magic box do it for you! Step right up ladies and gentleman… right this way…
Model fees, schmodel fees. It’s all so much R&D. Toss it into Overhead! (You know, that category we told you to ignore!!)
The “break even” concept is great. We all need to know our nut. But if you ignore your overhead, and toss stuff into overhead categories (that you ignore) without taking your ACTUAL, REAL costing into account….(wait… is that another affiliate link??) how in the heck are you going to get to that calculation so that it really means anything? Easy. You won’t. Not in a meaningful way. “Don’t stress over it.” Nah…. not unless this isn’t a game to you. If it’s important, you know what? A little stress may actually be in order.
While we’re at it, let’s ignore Cost of Sales, packaging, and industry standards of markup too.
(Hey, we’re just playing house here after all. We don’t ever intend to have a real, live, legitimate business anyway, do we? This is just fun, play-acting! You know… A hobby with business cards! No stressing over silly stuff like… Overhead.)
But what if it’s not.
What if you actually want – or NEED – to make real money with your business?
What if you need to supplement your income, your family’s income, or (gasp!) support yourself or your kids with this gig?
If that’s the case, you sure as hell don’t want to listen to ANYONE who tells you to blow off or ignore a fundamental BASIC of business. You want to listen to someone who has been where you want to go – successfully.
Want to learn how to handle your pricing the right way?