How To Figure Mark Up on Jewelry
Jewelry mark up is a common question of small business owners in the jewelry retail business. The retail price you list for your jewelry can make or break your business, so it's very important to price it right. Depending on business size, there are a few options available to figure out what will work best for you.
- Jewelry mark up is performed in different ways. If ordering the jewelry wholesale the recommended sale price is offered, and it's best to use this price. This means that the manufacturer has tested the retail price, and found that customers will purchase at that set price.
- Many manufacturers will discount your price even more if you purchase in bigger bulk sizes. You might be able to get discounts or free shipping as well. This will raise your profits even more. Even if you don't get free shipping, you get better shipping prices if you order in bulk.
- If selling handmade jewelry, you will want to get the total price of all your goods before settling on a price. You will also want to know how much in expenses you can spend. Expenses can include website costs, packaging, Ebay fees, and your labor. A good rule of them is to add a mark up of 50 percent, although some jewelry is marked up to 200 percent.
- Search for competitors that are selling jewelry similar to yours. You can then calculate your figures comparatively and see if you would have a profit at this price.
- Stores like Walmart have a set percentage that they mark up to. This might not work for you though, if you are a small business.
Formula
If selling handmade jewelry, a good formula to try would be one like the following:
- Determine how much you will pay yourself for labor. Let's say $10, and it takes you an hour to make each piece. You use $10 for packaging and jewelry supplies. We will say your monthly expenses is $50. 10 percent of that would be $5. So you then add it all up. So each piece of jewelry would cost $25.
Many small businesses make the common mistake of not charging enough for their jewelry. It's important to be turning enough profit to cover the expenses of the business and a wage for yourself. Otherwise within a year, you will be experiencing burnout and low income.