The Jewelry Piece – Assembly/Pricing form allows to accurately price and keep track of all your jewelry pieces. You will use this form to enter all the information about the piece including category, name, size and description. Select the Parts that were used to make the piece, update part and piece inventory, calculate labor costs and add instructions. You will know your exact costs and be able to price the piece to be sure you are making a profit. You can also add one or two pictures for each jewelry piece.
How to Price Jewelry – Three Price Levels
Jewelry Designer Manager will help you accurately price your jewelry based on the total cost of material, labor, and other costs. You decide the formula to use, the markup and whether to Round the suggested sales price. You will see both suggested and actual sales prices as well as the Gross Profit for each. (The Suggested Sales Prices and Gross Profit are in purple text. The actual Sales Prices that will print on all your reports are in the white text boxes. The actual Gross Profit is below the Sales Prices)
There are three prices available for each piece of jewelry: Wholesale, Direct and Retail. Wholesale is used for customers that are reselling your jewelry – such as a store or gallery. The Wholesale price should be your lowest selling price.
Suggested Retail is the price that the store may use. You may use it as well. Direct is another pricing option to use if you don’t want to use either Wholesale or Retail. Perhaps you are selling at a Home Party or Craft Show and you may not want to charge as much as Retail but you also do not want to sell at your lowest price. You do not have to use all the prices and you will have the option to select which price to print on your reports.
Jewelry Pricing Formulas
The two pricing formulas that will give you suggested selling prices are:
Sales Price = (Total Cost of Materials * Markup) + Labor + Other
Sales Price = (Total Cost of Materials + Labor + Other) * Markup
Other can be used for overhead. You can determine a fixed cost you would like to set for each piece or it could be a percentage of the total cost of materials.
There are two options for the Actual Selling price: Suggested or Specify. If you select Suggested the program will enter the selling price based on the formula selected. The selling prices will change if the Total Cost of Material, Labor, Other Cost or Mark Ups are changed. If the price of any of the parts used in the piece changes then the Suggested Selling Price and the actual price will change. Specify means you will override the formula and enter the actual selling prices. The price will not change again unless you edit the price.
You can also check Round to round the Suggested prices.
You can decide which markup and formula works best for you or whether to use Suggested or to Specify a price. JDM let’s you decide what is best for your business.
How to Mark-Up Jewelry Piece Prices
We are often asked how much to mark up jewelry pieces. There is no standard markup and pricing depends on many factors such as the type of jewelry you make, market conditions, customer perception, competition, demographics, etc. The mark up can be different for each piece depending on the complexity of the design or if precious metals or stones are used in the piece. You may also want a higher mark up if the jewelry piece is truly a one-of-a-kind. You can play with the numbers and see which mark up gives you the selling price and profit that seems the most sensible. You can also test different sales prices. Some people find that when they charge higher prices they actually sell more!