If you’re considering a company in jewelry as an importer, wholesaler, or retailer, understanding the costs of that 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 costs associated with the creation, distribution, and marketing of sterling silver jewelry.
Demand Driven Costs
Each year, 650 million ounces of silver gets mined from countries like Canada, Australia, Mexico, Peru, and the United States, with more via 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 an array of ways; from circuits in electronics, as anti-bacterial treatments in medicine, and is even sprinkled on food as decoration.
Consequently of this supply and demand from competing industries, the last century has seen tremendous fluctuations in the 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 associated with sterling silver jewelry is the expense of silver. The current cost per ounce is around $16.00 U.S. dollars, having risen sharply in the past few years. The bottom cost of the metal used is generally only a fraction of the costs that go into creating and delivery an item of jewelry to the conclusion customer.
Costs of Extra Material
Silver is often not the only real component used in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade or other stones increase the final cost of the piece. Many silver pieces also come coated with other higher priced metals, such as Platinum, Gold, or Rhodium, either to incorporate tarnish resistance or improve shine.
Costs of Labor
Jewelry pieces are handled by a person at one point or another, often for the more delicate tasks of design. Sets from setting the stones and creating the conclusion are area of the significant processing costs associated with turning an item of silver into jewelry. Such labor costs are heavily influenced by where in fact the jewelry is manufactured เครื่องประดับเงิน. Thus, in countries with higher labor costs, jewelry production is generally higher priced whether or not the pieces are of higher quality or better design.
The creation of jewelry and its distribution is a company that incurs costs like any business. These costs are offset by the profit made selling the product. The jewelry manufacturer sells at a high price to cover the costs of business overhead, such as machinery, staff, sales, and marketing, in addition to turn a profit. This technique occurs again down the supply chain once the importer, distributor, or retailer must sell them at a high price where these costs could be recouped and a gain made. The importer will need to factor in shipping and customs duty costs associated with getting the jewelry into the nation, while a supplier may have to add costs for warehousing and storing the pieces. The last retailer will often have costs of running a stone 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 definitely cost multiple from Walmart. Such costs are the effect of the time and money the brand holders have put within their brand.