Anyone running their own jewelry business will worry about pricing issues; if the prices are set too high it will drive off customers, alternatively prices that are too low will not yield a profit. It is quickly obvious that finding the right price point to balance making a profit and attracting customers is very important in the wholesale jewelry business. Luckily there are methods that can be applied to set a good price for your product. This method can be applied regardless of the source of your merchandise; whether it came from wholesalers or if it was hand made from component parts.
Jewelry purchased from a jewelry manufacturers should have a markup of 15% to 30% of their wholesale price. This is a reasonable markup for jewelry sold in retail and you can expect customers to pay these prices. Overall, keep a markup of 30% as the regular price for most items and a 15% markup for items that are on sale. Nearly all online jewelry retailers follow this rule of thumb as it is an easy and convenient way to quickly set reasonable prices for your merchandise.
For hand made jewelry, the complete cost of making each individual piece should be determined and a 15% markup added. This total cost should include the total cost of jewelry making supplies, packing, warehousing and shipping, nothing should be left out. A markup price of 15% is ideal for selling your jewelry wholesale, to retailers and bulk buyers. When selling directly to the public, either through an online store or through jewelry fairs and so on, apply a 45% markup to bring it closer to retail prices. Individual items that have been custom made to somebody's specifications can be charged anywhere from 45% to 70% above your cost, depending how much time and effort went into crafting the piece.
Be wary of setting prices too low in a misguided effort to attract buyers or to shift unmoving stock as buyers often become suspicious of items sold at unusually low prices. Many jewelry buyers firmly believe in the old adage that “is something sounds too good to be true, it probably is.” Many will associate cheap prices with substandard materials or poor workmanship. It may surprise you to know that a more effective method is to actually raise the price of items that aren't selling well. People are attracted to what they perceive to be more 'valuable' items and you may even sell one or two of your previously unsold pieces at a higher price. It should always be remembered that jewelry is a luxury item here, not a necessity. What people buy depends on their mood and personal preferences and, yes, the price of a piece of jewelry goes a long way in coloring a person's perceptions of its value.
Take advantage of current trends and set your prices accordingly. Be creative in your pricing scheme, but always remember to cover your costs. Keep in mind the time and labor you put into this venture and be sure that you are compensated for it.
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