When you’re selling your jewelry wholesale, you need to price your jewelry accordingly. This means that you need to take into account all of the costs associated with making and selling your jewelry, as well as the retailer’s markup. In this article, we’ll walk you through how to do just that.
What Is Wholesale Jewelry Pricing?
Before we get into the calculations for pricing, let’s first define wholesale jewelry pricing. Wholesale jewelry pricing is the price that a jeweler charges when selling their jewelry to a retailer. This price takes into account all of the costs associated with making and selling the jewelry, as well as the retailer’s markup.
This is not the price that you would charge if you were selling the jewelry directly to a customer. This is also not the price that the retailer would charge the customer. In these situations, the price is called the retail price and it is higher to ensure the retailer makes a profit.
How To Calculate The Wholesale Price For Your Jewelry
Now that we know what wholesale jewelry pricing is, let’s talk about how to calculate it. There are a few different factors that you need to take into account when calculating the wholesale price for your jewelry. These factors are listed below.
Calculate The Cost Of Materials
The first thing you need to do is calculate the cost of materials. This includes all of the materials that you used to make the jewelry, such as metal, gemstones, etc. To get this cost, you need to determine the price of each individual piece that you used and then add them all up.
For example, let’s say that you used the following materials to make a necklace:
– 1 ounce of silver: $20
– 2 Gemstones: $10 each
– 1 clasp: $5
The total cost of materials would be $45.
Calculate The Time You Spent Designing And Creating The Jewelry
The next thing you need to do is calculate the time you spent designing and creating the jewelry. This includes the time it took you to come up with the design, as well as the time it took you to actually create the jewelry. To calculate this, you need to determine how long it took you from start to finish and then multiply that by your hourly rate.
For example, let’s say it took you 10 hours to design and create the necklace we used in the previous example. If your hourly rate is $20, then the cost of your time would be $200.
Calculate Labor Costs
The next thing you need to do is calculate any labor costs. This includes the cost of any assistants that you had helping you make the jewelry, as well as the cost of any outside services that you used. For example, if you had someone polish the jewelry for you, you would need to include that cost here.
To calculate this, you need to determine the cost of each individual service and then add them all up.
For example, let’s say you used the following services:
– Polishing: $50
– Plating: $100
The total cost of labor would be $150.
Calculate Packaging Supplies
The next thing you need to do is calculate the cost of packaging supplies. This includes things like gift boxes, bags, tissue paper, etc. To calculate this, you need to determine how much it costs to purchase these items in bulk and then divide them by how many were used for each jewelry piece.
For example, let’s say that you spent $100 on packaging supplies and you were able to make 10 necklaces with those supplies. The cost of packaging per necklace would be $10.
Factor In Overhead Costs
The next thing you need to do is factor in overhead costs. This includes things such as the cost of rent, utilities, insurance, etc. To calculate this, you need to take your total overhead costs for the month and divide it by the number of pieces of jewelry you made.
For example, let’s say that your total overhead costs for the month are $1000 and you made 100 pieces of jewelry. The overhead cost per piece of jewelry would be $10.
Multiply By 2
Once you have calculated all of the above costs, you need to multiply that number by 2. This is because, when selling wholesale, you need to make sure that you are making a profit. If you merely added the numbers from the above calculations, you would only cover the cost of your expenses.
For example, let’s say that the total cost of the necklace from the previous examples is $455. This means that you would need to sell it wholesale for at least $910 in order to make a profit.
Wholesale Pricing Tips To Keep In Mind
There are a few things you need to keep in mind when wholesale pricing your jewelry. These tips will help ensure that you are making a profit, while still giving the retailer a good deal.
The Retailer Needs To Make A Profit
The first thing you need to keep in mind is that the retailer needs to make a profit, too. They are the ones selling your jewelry to the customer, so they need to be able to make a profit off of it, as well.
You also need to keep in mind that the retailer has other costs that they need to factor in, such as the cost of their time and labor, packaging, marketing, etc.
In order for the retailer to make a profit, they will need to mark up the price of your jewelry. The standard markup for wholesale jewelry is 2.5-3 times the cost of the piece.
So, if a piece of jewelry costs the retailer $100, they will need to sell it for at least $250-$300 in order to make a profit.
And, So Do You
While it’s important to keep in mind that the retailer needs to make a profit, you also need to make sure that you are making a profit, as well. After all, you are the one who put in all the time and effort to design and create the jewelry.
To make sure that you are making a profit, you need to make sure that your wholesale price is at least 2 times the cost of the piece. This will ensure that you are making a profit, while still giving the retailer a good deal. However, if you are not yielding a profit at 2 times the cost, you may need to re-evaluate your wholesale pricing strategy.
Research The Prices Of Your Competitors
One last thing you need to keep in mind is that you need to research the retail prices of your competitors. This will help you determine a fair wholesale price for your jewelry.
You can use sites like Amazon and Etsy to get an idea of what other jewelry designers are charging for their pieces at wholesale cost. You can also attend trade shows and wholesale markets to see what prices other designers are charging for their jewelry. You should also take a look at the wholesale prices offered by your competitors to your retailer buyers, if possible.
When researching wholesale prices, be sure to take into account the quality of the jewelry, as well as the materials used. This will help you price your jewelry accordingly.
Conclusion
Keep these wholesale pricing tips in mind when selling your jewelry to retailers. By pricing your jewelry correctly, you can ensure that you are making a profit while still giving the retailer a good deal.