Have you seen similar silver jewelry sold at price
difference of two to three times from different retailers? Have you
ever wondered how retailers mark up the jewelry after they get them
from the venders? Here we will show you the wholesale trading
secrets of sterling silver jewelry.
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Price per gram The
most important piece of information for determining the price of a
piece of sterling silver jewelry is the price per gram of the
silver. This is the fundamental raw material cost of a piece of
sterling silver jewelry due to the fact that silver is considered a
precious metal. For instance, the price for silver is $9.5 per
ounce, the price per gram is determined by dividing the price per
ounce by 31.5, which is 30 cents. Therefore, the cost for the raw
material for a 5 gram wedding band ring is roughly $1.5. Some might
wonder why people would pay $30 for a silver wedding ring when the
silver only cost $1.5. The followings will explain the difference.
Labor cost To turn
raw material into finished goods, it involves a great deal of
processing cost. The metal itself has to be melted, molded and cast,
polished and assembled. Most of the times, silver jewelry is
accented with various stones, the costs for setting the stones are also
a major part of the total cost for jewelry, especially for jewelry
that requires high level of craftsmanship. |
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Other materials Also,
the costs for any additional material are added to the jewelry. For
instance, a pair silver pearl dangle earrings that has two cultural
fresh water pearls with rhodium finish should cost double the price
of the silver to make because of the cost of the pearl and rhodium.
Note that rhodium is even more expensive than silver itself and it
is high tarnish resistant. Shipping cost Many
styles of jewelry are imported from other countries because of
difference in availability of raw materials such as stones and also
the specialties in making some particular styles. Hence the shipping
cost of transporting is also part of the cost. Usually, for imported
sterling silver jewelry, the shipping cost can amount to 10% of what
it costs to make the jewelry themselves.
Custom Duties For the
same reasons, imported jewelry incurs duties at the custom. This is
a cost that normal consumers are not aware of but it can also
increase the price of sterling silver jewelry for 5% to 10%. |
Price fluctuations
Some sterling silver jewelry trader, especially wholesaler would
associate the price of the jewelry with the current silver price.
Therefore, the price of a piece of sterling silver jewelry might be
different from month to month, and even day to day in the case of
wholesale.
Business Overhead
Just like any other business, the sales have to cover also the
overhead of running the business. Normal overhead costs are
employees’ salaries, rent, utilities and breakage.
Profit Of course, the
price you pay includes the profit for the sellers.
By knowing the above facts, you can make much more
informed decisions when buying wholesale sterling silver jewelry and
most importantly, avoid scams. There are occasions when people make
fake silver jewelry and sell them at a very low price. If you know
how to determine the cost of a piece of silver jewelry, you won’t
buy into deals where they offer you a price that is lower than the
normal cost of real sterling silver jewelry.
Greg Peterson got his MBA from MIT business school
and is now working as marketing manager for jewelry distributors
featuring
wholesale sterling silver jewelry and wholesale hip hop jewelry
featuring cubic zirconia stones.
Article Source:
http://EzineArticles.com/?expert=Greg_Peterson
