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Sterling silver & 14K gold bracelet
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A few weeks ago I sold a pair of gold earrings. I wanted to
replace them with a new pair however when I ordered the materials I found out
that the price I have charged barely covers the cost of the raw materials and
certainly it doesn't cover labor costs and overhead. This forced me to reopen an
issue which I tend to neglect: Jewelry pricing.
For pricing jewelry accurately it is important to keep detailed
records of the raw materials cost and of the time required to prepare the
piece. In addition, it is necessary to follow the various components of
overhead costs. The importance of these tasks is clear yet I do not enjoy doing
them. Naturally I would rather design and fabricate jewelry than do paper work.
I have decided to take some time to resolve this matter. I prepared an excel
file with a few formulas to help me calculate prices, I searched my folders for
actual costs of materials and tools and I am actually attaching price tags to
my jewelry ahead of selling. My goal is to reach a state where each piece will
be priced immediately after preparation, even though care should be given to
changes in raw material costs over time.
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