A Hong Factory’s guide to fellow jewelers
Calculate the price of your wholesale silver jewelry set is a crucial thing to do. Each time you are in an exhibition to sell these wholesale silver jewelry sets, customers find them too expensive. Then, when you ask your fellow wholesale silver jewelry set sellers for advice, they tell you that you should slightly raise your prices. So, you do not know which foot to dance on.
Rather than relying on external opinions, I propose some criteria to take into account in your calculations. By respecting these, you will ensure you have enough income to grow your business of selling wholesale silver jewelry set.
Wholesale silver jewelry set price VS retail jewelry set price
The retail price, or consumer price, is the price that will be paid by the end consumer. In the case of jewelry, they are any individual.
The wholesale price, meanwhile, corresponds to the cost of resale at a shop. Indeed, you will not sell them your wholesale silver jewelry set at the same rate as your direct customers. In general, shops take a 50% commission on the retail price. In this case, the wholesale price is, therefore, half the retail price.
If you are starting your entrepreneurial adventure, I advise you to calculate, from the beginning, your prices according to this commission. Indeed, if you decide one day to do business with resellers, you will not need to justify to your customers why, suddenly, your prices have doubled.
Besides, even if you never sign a contract with a shop, your wholesale jewelry prices will still be in line with the market and your colleagues will be grateful. Indeed, there is nothing worse than a competitor who breaks prices. In any case, it is not advantageous, even for the person who sells cheaper. But I’ll come back to it in another article!
When dealing with retail stores and customers, the final sales price must be the same. This is important because your customers would not be happy to know they paid more for one place than another. Moreover, no shop would accept that you sell your products cheaper on your website.
The cost price is the sum of all expenses related to the manufacture of a product. To illustrate this, nothing better than a small formula:
cost price = variable charges + fixed costs
Variable expenses are directly dependent on the costs of manufacturing the product. It includes materials and labor, but also energy expenses (water, electricity, gas, etc.).
The materials include all the raw materials that you used to make your jewel. Be careful when you determine the cost. We often forget the little things like the glue used to glue pearls, for example.
In this case, you will not pay the entire tube of glue to each customer. On the other hand, you can make a ratio of the number of beads stuck with a machine, depending on its price.
Also, remember to include the cost of packaging: a box for the wholesale silver jewelry set, for example, and the bubble envelope or cardboard that will be used for shipping, if this is the case.
Labor is the time you spend making your jewel, based on your hourly wage:
labor = time x salary
It’s up to you to set your hourly wage. However, you will understand that if you start, you cannot set the same salary as a person with ten years of experience. You are certainly slower at producing wholesale silver jewelry set than a professional jeweler. As a beginner, your work is likely of lower quality. But in any case, you cannot pay less than the minimum hourly wage set by the state. Marcasite Silver Jewelry Wholesale
In the labor force, the costs of subcontracting, such as crimping or casting, are also included.
Energy expenses are a bit more complicated to calculate. Indeed, the electricity bill, for example, fluctuates each month depending on your activities. If you work a lot during November because you have to produce for the Christmas markets, it will be higher this month. If you take two weeks of vacation in August, it will drop a lot this month.
I advise you to average your energy consumption over a year and divide it by the number of jewels you produce. This will give you roughly the fees to add. You can do the same with your gas and your oxygen.
Fixed charges include all costs incurred by your business, regardless of your business.
About Hong Factory
Hong Factory has been of the leading jewelry manufacturer in Thailand for a long time. If you are in the area and you want to buy a bunch of wholesale silver jewelry set with excellent quality and reasonable price. Check out their catalog at www.hongfactory.com