If you are a silver jewelry retailer and you are searching for silver jewelry for resell, do you realize that while you are doing your research in Google or Yahoo, you will get a list of wholesaler who lists their jewelry prices a little higher? Let me give you an example, if you are looking for a simple sterling silver ring or wedding band, the weight for this ring is approximately 2 or 3 gram per piece and the cost of this material is around $0.40 – $0.90. Let me explain to you why there are so many wholesaler out there are selling you for the price of $2.00 – $19.00 or more.
Labor Cost
The first reason is the labor cost. The manufacturers have to pay for the cost of turning the raw material to finished goods. There are costs for metal melting, molding, polishing, handmade, casting, high level craftsmanship and assembling.
Precious Stone Cost
Before you purchase any jewelry, please ensure the type of stone used in the jewelry. Some jewelry comes with Cubic Zirconia or Swarosvki Crystal which are cheaper compare to gemstone. A gemstone or gem is also called a precious or semi-precious stone. For the jewelry that comes with pearl, there are synthetic pearl and genuine pearl. Jewelry that comes with synthetic pearl will usually cost lower because the pearl used are man made pearl.
Plating
Silver jewelry is mostly plated with Rhodium. Rhodium will prevent it from tarnishing and it is usually cost more than silver. So, this will make the jewelry to be more expensive.
Price Fluctuation
Some of the jewelry wholesalers will associate the price of the jewelry with the current silver/metal market price. These are the case that might cause the jewelry to be cheaper this week and to be more expensive next month because it all depends on the market price of the metal at that time. Nevertheless, some wholesaler might set a fixed price to the silver jewelry regardless the price change of the metal market price.
Courier Fee & Insurance
It also depends on the wholesalers to set the price of the jewelry. If you have done your research, you will notice that some wholesalers will list the price more than you expected because they might add in the shipping cost and insurance to the jewelry itself.
Business Overhead Expense
There are ongoing expenses of operating a business. Normal ongoing expensive are bills, utilities, machines, employee’s salaries, office & factory rental fees, breakage, e-commerce web site, advertising fees and so on.
Profit & Revenue
The seller will need to have profit in return for every sale they made. Now you will have some idea and knowledge on why there are many wholesalers or manufacturers are selling at many different prices. Please make sure that all the jewelry that you purchase has stamped “.925”. Some wholesaler also able to get prices a little lower than a normal wholesale price. It all depends on how you deal with the manufacturer.
Source by Eugene Tan
