If you’re considering a small business in jewelry being an importer, wholesaler, or retailer, understanding the costs of this jewelry is critical. Having this knowledge enables you to better appraise pieces you buy and avoid being scammed by those offering over-priced or fake jewelry. This article pertains specifically to the costs related to the creation, distribution, and marketing of sterling silver jewelry.
Demand Driven Costs
Annually, 650 million ounces of silver gets mined from countries like Canada, Australia, Mexico, Peru, and the United States, with more originating from scrap recycling and investor trading. In 2001, 24% of the silver was found in photography, while 33% was found in jewelry, 40% for industrial uses, and only 3% for coins and medals. Within these categories, silver is found in a myriad of ways; from circuits in electronics, as anti-bacterial treatments in medicine, and is even sprinkled on food as decoration.
As a result of this supply and demand from competing industries, the final century has seen tremendous fluctuations in the buying price of silver. Prices saw an all-time saturated 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 related to sterling silver jewelry is the cost of silver. The current cost per ounce is around $16.00 U.S. dollars, having risen sharply in the past few years. The base cost of the metal used is usually merely a fraction of the costs that get into creating and delivery an item of jewelry to the finish customer.
Costs of Extra Material
Silver is usually not the only real component found in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade and other stones increase the ultimate cost of the piece. Many silver pieces also come coated with other more costly metals, such as Platinum, Gold, or Rhodium, either to incorporate tarnish resistance or improve shine.
Costs of Labor
Jewelry pieces are handled with a person at one time or another, often for the more delicate tasks of design. Everything from setting the stones and creating the final are part of the significant processing costs related to turning an item of silver into jewelry. Such labor costs are heavily influenced by where the jewelry is made เครื่องประดับเงิน. Thus, in countries with higher labor costs, jewelry production is usually more costly whether or not the pieces are of high quality or better design.
The creation of jewelry and its distribution is a small business that incurs costs like any business. These costs are offset by the profit made selling the product. The jewelry manufacturer sells at a cost to cover the costs of business overhead, such as 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 that at a cost where these costs could be recouped and a profit made. The importer must factor in shipping and customs duty costs a part of getting the jewelry into the country, while a vendor might have to add costs for warehousing and storing the pieces. The last retailer will often have costs of running a brick and mortar location and advertising to customers.
Marketing and Branding Costs
A final cost worth separating from standard overhead costs involves the branding and marketing of certain collections. A sterling silver piece from Tiffany’s will surely cost multiple from Walmart. Such costs are the end result of that time period and money the brand holders have put into their brand.