How to Calculate the Price of Jewelry
- 1). Add up how much you paid for the supplies used in a piece of jewelry. For example, if you made a necklace with two feet of silver chain, and you paid $10 a foot for the chain, you have $20 of silver chain in the necklace.
- 2). Multiply the cost of the supplies used in a piece of jewelry times 3. It is standard to charge three times what you paid for the supplies when selling your handmade jewelry. For example, if you paid $20 for a silver chain and $5 for a gemstone charm, you would multiply $25 times 3, which equals $75.
- 3). Determine how much your time is worth to you, and decide on an hourly wage that you feel is appropriate for the time you spend making your jewelry. This may be anywhere from $5 to $20 or more per hour, depending on how much labor is involved and skill is required to make your particular type of jewelry.
- 4). Take note of how much time you spend making a piece of jewelry, and add your hourly wage onto its price. For example, if you decide your time is worth $5 per hour, and you spend one hour on the $75 necklace described above, you would add $5 onto its price, making it $80.
- 5). Remember your overhead costs, which are all the costs, apart from jewelry supplies, of being in business, such as rent and festival fees, gas and phone bills. To account for your overhead, add 10 percent to the amount you reached in step 4. For example, 10 percent of $80 is $8; therefore, you would add $8 to the price of the necklace, making it $88.
- 6). Use this basic formula to price your jewelry: multiply the cost of supplies times 3; add your hourly wage; add 10 percent for overhead.
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