How to Price Jewelry for Profit and Precision

The industry-standard approach starts with total cost (materials + labor + overhead) and applies a markup. Most retail jewelers use a 2.0–2.5x keystone markup on the total cost. This section breaks down each cost component and how to track them accurately.

Metal costs fluctuate daily. Learn how to calculate your metal cost based on current spot price, karat purity, and piece weight — plus how to account for casting loss (typically 5–15% depending on method). Stone costs should include setting labor in the per-unit calculation.

Bench time is where most small jewelers undercharge. We cover how to calculate a true hourly shop rate that includes rent, utilities, tools, insurance, and your own salary. The difference between a $40/hr and $85/hr shop rate can be the difference between profit and poverty.

Markup and margin are not the same thing — and confusing them costs money. A 2x markup gives you a 50% margin. A 3x markup gives you 66.7%. We explain why thinking in margins (not markups) leads to better pricing decisions, especially when comparing across product lines.

Price isn't just cost-plus — it's a brand signal. Luxury positioning requires different pricing psychology than value-oriented retail. We cover how to audit competitor pricing, when to price above market, and how to justify premium pricing with presentation and story.

If you sell both wholesale and retail, your pricing structure needs guardrails. We cover how to set wholesale minimums, protect retail margins, and handle MAP (Minimum Advertised Price) policies with stockists.