I want to sell jewellery on the internet, how do i decide how much to add on to the wholesale price?

Question

I dont want to be greedy but as a first time business person I want to get a far price but not price myself out of the market. I have seen that "cost plus pricing" means that jewellery is marked up by 250%. Seems a lot to me but if that's the norm.....

Answer 1

Experiment. Set a price that you're happy with and see what sells. If lines aren't selling drop the price a little. If people are buying it's not priced too high. Do some market research, ask people how much they'd be happy to pay for a selection of your lines. At least then you'll have a rough guide to go by.

Answer 2

It's the norm for retail, not a private seller.

The retail stores have to make a profit for the business, the store, above what they pay their employees and overhead costs. You should not use retail prices as a basis for pricing. Cost plus pricing tends to ignore the consumers and the competitors. A customer may not be willing to pay the asking price, and your competitors may have it cheaper. Cost plus pricing is a fixed way to calculate the price, so it's fair and ethical, but it doesn't keep your prices competitive with others.
http://www.answers.com/topic/cost-plus-pricing

You should take a different approach to figuring the price of your jewelery. Set your labor and overhead cost at an hourly rate. For every hour you spend making that piece, add your rate to the price. Double your cost of materials, so that you have paid for the materials used and can buy more for the next piece. Divide your monthly overhead by ow many hours you work each month. That will be your hourly overhead rate. For each hour spent making the piece, add that number. Then add a small percentage for profit.

Labor + Double the materials + Overhead = Sub total
Sub total x Profit percentage = Profit
Sub total + Profit = Price

Let's say you want to make $20 and hour. Your material cost was $30. Your overhead for the month was $500, and you spent 50 hours working, so that's $10 an hour. You spent 2 hours making a necklace. You want a 10% profit off of each piece you make.

So your pricing would look like this:
($20 x 2) + ($30 x 2) + ($10 x 2) = $120
$120 x 0.10 = $12
$120 + $12 = $132

You would sell the necklace for $132. That will pay for your costs, your salery, your materials, and give a small profit to invest back into the company for things like more tools and repairs to your business equipment.

http://www.bluebuddhaboutique.com/resources/articles.php

Answer 3

While Clusp does give a good answer to experiment, why not get in touch with your wholesaler who may be able to provide you with the RRP (Reccommended Retail Price).

Also, taking a look at what your competition is charging, and if you feel thats too much, undercut them. Thats a good selling point.

Answer 4

Just add a price you feel that is going to be atractive to a buyer and a profit to you.

Answer 5

if you want to succeed. then, do some research on your competion. & factor in your Overhead. . .then, decide how much the markup should be..
i dunno much about jewelery industry . .by most retailers work on a 30 -40% markup.

if u need jewelery wholesale sources. .chek it out

Answer 6

At least double.