How To Price Wholesale Jewelry

Women love jewelry and many now choose to make their own. If you fall into this second category, you may wish to sell it to others. How do you go about pricing wholesale jewelry though? What factors should you consider when setting a price? This can be very confusing and harm your business if you set you price too high or too low. Here is how to go about determining a price for your wares.

If you love to make jewelry, you are not alone. Many enjoy this craft and engage in it on a regular basis. What do you do with these items once you have created them? You can sell them to others! Many are hesitant to do so as they are unsure of how to go about pricing their goods. Follow these simple steps to help you determine a selling price for each piece you make.

1. Record exactly how much is spent on supplies for each piece you make. When you buy items in bulk, separate the pieces out into piles. Each pile should represent one piece of jewelry. Now take the price you paid for these supplies and divide it by the number of piles you have. The resulting figure will be the price of supplies per piece. Record this on a piece of paper.


2. Next you will need to determine how much time is spent creating the jewelry. Also, determine how much your labor rate is. If you calculate your labor rate at ten dollars an hour and it takes two hours to complete one piece, the labor cost will be 20 dollars for that piece. Some pieces can be very timely to construct which raises the labor cost significantly. Determine if you need to cut the labor rate for pieces of this type in order to sell them.


3. Add the price of supplies to the labor rate. This will be your base price for each piece.


4. Determine how much it will cost to ship each item. Don't forget to include the cost of packing supplies, insurance and postage. Add this to the base price.


5. Calculate your overhead. This may include price tags, the cost of your tools, advertising and the like. This needs to be done on a per piece basis also. Often this is the most difficult calculation to make, but do the best you can. There is no set formula that may be used here which is why many find it to be very complicated. Add this to the price determined in step 4. This is your total cost.


6. Take your total cost and add a 15-percent markup. This is the final price you will ask your customers to pay.

It never hurts to see if you can find comparable items online and see what they are selling for. You may also want to visit local craft fairs and shops that sell this type of goods. You don't want to price yourself out of the market, but you shouldn't give your stuff away either.