The shop owner who buys it from you at wholesale would then turn around and retail-price the bracelet at $37, and sell it to a customer who comes into the shop. So the $37 retail-priced bracelet in this example would be wholesale-priced at $18.50. Wholesale and consignment prices are typically 50% to 60% of your retail price. Multiplying your cost of materials + packaging x 4 in my jewelry pricing formula sets your retail price high enough so that if you sell your pieces at wholesale or on consignment to a shop, you’ll still make a profit. That’s what I like about my jewelry pricing formula – by finding the base price, I know I’m not losing money when I sell my jewelry and the final price more accurately reflects what the piece is worth to its buyer. If you’re in business, your jewelry has to pay for all of those expenses as well as your jewelry making supplies.Īnd after all the expenses are paid for, you’d like to have a little left over to pay yourself too. Your overhead expenses include things like your jewelry business website fees, jewelry displays, tools, insurance, merchant account fees for accepting credit cards, receipt books, digital camera (and its batteries) for photographing your work, jewelry magazines, workshops, etc.
#Wholesale jewelry stands cheap plus#
When you sell your jewelry, you need to be paid for the time, effort and craftsmanship you put into all the various aspects of your jewelry business, plus the cost of all of your overhead expenses, if you want to stay in business. Unfortunately, it’s impossible to have a profitable business with that kind of pricing. Many jewelry artists price their work by simply doubling the cost of their supplies – charging $10 for that necklace made from $5 of jewelry supplies. Now we can adjust that retail price up a little or a lot – depending on the uniqueness and overall outcome of the necklace, how easily we could replace the components if we wanted to, and how much our intended market would be willing to pay. That means we can’t price the necklace below $37 without losing money on it. Our base price for the necklace is $37.40, which we’ll round off to $37. Finally, add the overhead to our $34 subtotal:ħ. Now figure your overhead, which is 10% of that:Ħ. Then add your pro-rated labor rate to that:ĥ. Now multiply your total cost of materials by 4:Ĥ.
$5 of jewelry supplies + $1 of packaging = $6 subtotal.ģ. So half of your $20 hourly labor rate equals $10 of labor on this necklace. Your 30 minutes of labor equals half an hour. First, figure out your pro-rated labor cost: your hourly labor rate is $20 (of course, your own labor rate may be much different, depending on your medium, your speed, and your skill level).ġ.the necklace took you 30 minutes to make.your packaging (tag, box, bow, bag, and business card) for this piece totals $1.you made a necklace using $5 of supplies.Then + 10% of that total for overhead costs.
But I know I can’t drop the final retail price below the base price the formula gave me, without losing money on the sale. Of course, these three points are mainly subjective, and require a bit of experience with your intended market.
#Wholesale jewelry stands cheap full#
This jewelry pricing formula does NOT provide realistic prices if you’re purchasing your supplies at full retail prices from a local craft store or bead store.įor example, if your supplies for a pair of earrings cost $15 from a craft or bead store, but the same supplies would have cost you just $5 if you were purchasing wholesale or in bulk, you can see the huge difference that would make in the pricing formula’s final numbers! 🙂 The Second Step in MyĪfter using my formula, I add an important second step: Adjust the resulting price to reflect: When you’re selling your handmade jewelry, it’s important to purchase your supplies at the lowest possible price – at wholesale or at bulk discounts as much as possible. The key is to be sure that any jewelry pricing formula you use compensates you for: Then, once I’ve determined that base price, I adjust the final retail price to more accurately reflect the value of the piece to my particular market. In my opinion, using a jewelry pricing formula is just the first step in arriving at the final price of a piece of jewelry.įirst, I use a calculation to determine a base price that ensures I won’t be selling the piece at a loss. All Rights Reservedĭo you use a jewelry pricing formula to determine how much to charge for your creations? There isn’t one “best” formula for pricing jewelry – and most artists who sell their jewelry come up with their own price calculation procedures.
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