If you’re considering a business in jewelry as an importer, wholesaler, or retailer, understanding the expenses of the jewelry is critical. Having this knowledge enables you to better appraise pieces you buy and avoid being ripped off by those offering over-priced or fake jewelry. This article pertains specifically to the expenses 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 increased coming 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.
Consequently of the 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 less costly than gold and platinum, jewelry pieces produced from silver still sell for a higher premium on the market. The initial cost connected with sterling silver jewelry is the price of silver. The existing cost per ounce is around $16.00 U.S. dollars, having risen sharply in recent years. The base cost of the metal used is usually just a fraction of the expenses that enter creating and delivery a bit of jewelry to the conclusion customer.
Costs of Extra Material
Silver is often not the only real component found in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade or other stones will increase the final cost of the piece. Many silver pieces also come coated with other more expensive metals, such as Platinum, Gold, or Rhodium, either to add tarnish resistance or improve shine.
Costs of Labor
Jewelry pieces are handled by a person at one time or another, often for the more delicate tasks of design. Sets from setting the stones and creating the final are area of the 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 usually more expensive regardless of whether the pieces are of higher quality or better design.
The creation of jewelry and its distribution is a 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 cost to cover the expenses of business overhead, such as machinery, staff, sales, and marketing, as well as turn a profit. This technique occurs again down the supply chain once the importer, distributor, or retailer must sell the item at a cost where these costs can be recouped and a profit made. The importer will have to factor in shipping and customs duty costs involved with getting the jewelry into the nation, while a supplier might have to add costs for warehousing and storing the pieces. The ultimate retailer will often have costs of running a brick and mortar location and advertising to customers.
Marketing and Branding Costs
One last cost worth separating from standard overhead costs involves the branding and marketing of certain collections. A sterling silver piece from Tiffany’s will cost multiple from Walmart. Such costs are the end result of that time period and money the brand holders have put to their brand.