If you’re considering a small business in jewelry being an importer, wholesaler, or retailer, understanding the costs of the jewelry is critical. Having this knowledge allows you to better appraise pieces you purchase and avoid being cheated by those offering over-priced or fake jewelry. This informative article pertains specifically to the costs connected with the creation, distribution, and marketing of sterling silver jewelry.
Demand Driven Costs
Every year, 650 million ounces of silver gets mined from countries like Canada, Australia, Mexico, Peru, and the United States, with more coming from scrap recycling and investor trading. In 2001, 24% of the silver was used in photography, while 33% was used in jewelry, 40% for industrial uses, and only 3% for coins and medals. Within these categories, silver is used in many ways; from circuits in electronics, as anti-bacterial treatments in medicine, and is even sprinkled on food as decoration.
Consequently of this supply and demand from competing industries, the past century has seen tremendous fluctuations in the buying price of silver. Prices saw an all-time high in 1980, when it reached $49.45 U.S. dollars per Troy ounce.
Precious Metal Costs
While more affordable than gold and platinum, jewelry pieces made from silver still sell for a higher premium on the market. The initial cost connected with sterling silver jewelry is the expense of silver. The existing cost per ounce is around $16.00 U.S. dollars, having risen sharply in recent years. The bottom cost of the metal used is generally only a fraction of the costs that enter creating and delivery a bit of jewelry to the end customer.
Costs of Extra Material
Silver is often not the sole component used in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade and other stones increase the final cost of the piece. Many silver pieces also come coated with other higher priced metals, such as for example Platinum, Gold, or Rhodium, either to incorporate tarnish resistance or improve shine.
Costs of Labor
Jewelry pieces are handled with a person at one point or another, often for the more delicate tasks of design. Sets from setting the stones and creating the finish are the main significant processing costs connected with turning a bit of silver into jewelry. Such labor costs are heavily influenced by where in fact the jewelry is created เครื่องประดับเงิน. Thus, in countries with higher labor costs, jewelry production is generally higher priced regardless of whether the pieces are of higher quality or better design.
The creation of jewelry and its distribution is a small business that incurs costs like any other business. These costs are offset by the profit made selling the product. The jewelry manufacturer sells at a high price to cover the costs of business overhead, such as for example machinery, staff, sales, and marketing, in addition to turn a profit. This method occurs again down the supply chain once the importer, distributor, or retailer must sell them at a high price where these costs could be recouped and a gain made. The importer will have to element in shipping and customs duty costs a part of having the jewelry into the country, while a supplier might have to add costs for warehousing and storing the pieces. The ultimate retailer will usually have costs of running a stone and mortar location and advertising to customers.
Marketing and Branding Costs
Your final cost worth separating from standard overhead costs involves the branding and marketing of certain collections. A sterling silver piece from Tiffany’s will definitely cost several from Walmart. Such costs are the result of that time period and money the brand holders have put within their brand.