How to Price Jewelry for Profit

Start with total cost (materials + labor + overhead), then apply a markup. Most retail jewelers use a 2.0 to 2.5x keystone markup on total cost. This section breaks down each cost component and how to track them accurately.

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

Bench time is where most small jewelers undercharge. 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. Confusing them costs money. A 2x markup gives you a 50% margin. A 3x markup gives you 66.7%. Thinking in margins (not markups) leads to better pricing decisions, especially when comparing across product lines.

Price is a brand signal. Luxury positioning requires different pricing psychology than value retail. Audit competitor pricing, know when to price above market, and justify premium pricing with presentation and story.

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