If you’re considering a company in jewelry as an importer, wholesaler, or retailer, understanding the costs of the jewelry is critical. Having this knowledge enables you to better appraise pieces you get and avoid being scammed by those offering over-priced or fake jewelry. This information pertains specifically to the costs associated 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.
As a result of this supply and demand from competing industries, the last 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 less costly than gold and platinum, jewelry pieces made from silver still sell for a high premium on the market. The first cost associated with sterling silver jewelry is the cost of silver. The present cost per ounce is around $16.00 U.S. dollars, having risen sharply in recent years. The base cost of the metal used is normally just a fraction of the costs that go into creating and delivery a piece of jewelry to the finish customer.
Costs of Extra Material
Silver is often not the only component used in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade or other stones will increase the last cost of the piece. Many silver pieces also come coated with other more expensive metals, such as for example 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. From setting the stones and creating the conclusion are area of the significant processing costs associated with turning a piece of silver into jewelry. Such labor costs are heavily influenced by where in actuality the jewelry is created เครื่องประดับเงิน. Thus, in countries with higher labor costs, jewelry production is normally more expensive whether or not the pieces are of top quality or better design.
The creation of jewelry and its distribution is a company that incurs costs like any other business. These costs are offset by the profit made selling the product. The jewelry manufacturer sells at a price to cover the costs of business overhead, such as for example machinery, staff, sales, and marketing, as well as turn a profit. This method occurs again down the supply chain when the importer, distributor, or retailer must sell them at a price where these costs can be recouped and a profit made. The importer will have to element in shipping and customs duty costs involved with getting the jewelry into the country, while a supplier may have to add costs for warehousing and storing the pieces. The final retailer will frequently have costs of running a stone 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 definitely cost multiple from Walmart. Such costs are the result of the time and money the brand holders have put into their brand.