If you’re considering a company in jewelry being an importer, wholesaler, or retailer, understanding the expense of the jewelry is critical. Having this knowledge allows you to better appraise pieces you purchase and avoid being scammed by those offering over-priced or fake jewelry. This article pertains specifically to the expense 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 increased via scrap recycling and investor trading. In 2001, 24% of the silver was found in photography, while 33% was found in jewelry, 40% for industrial uses, and only 3% for coins and medals. Within these categories, silver is found in an array of ways; from circuits in electronics, as anti-bacterial treatments in medicine, and is even sprinkled on food as decoration.
Consequently with 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 more affordable than gold and platinum, jewelry pieces made from silver still sell for a higher premium on the market. The first 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 recent years. The beds base cost of the metal used is usually merely a fraction of the expense that go into creating and delivery a bit of jewelry to the end customer.
Costs of Extra Material
Silver is usually not the only real component found in Sterling Silver Jewelry. The addition of Crystals, Pearls, Jade and other stones increase the last cost of the piece. Many silver pieces also come coated with other higher priced metals, such as for instance Platinum, Gold, or Rhodium, either to incorporate 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 finish are part of the significant processing costs associated with turning a bit of silver into jewelry. Such labor costs are heavily influenced by where in actuality the jewelry is manufactured เครื่องประดับเงิน. Thus, in countries with higher labor costs, jewelry production is usually higher priced no matter whether the pieces are of top quality or better design.
The creation of jewelry and its distribution is a company that incurs costs like some other business. These costs are offset by the profit made selling the product. The jewelry manufacturer sells at a cost to cover the expense of business overhead, such as for instance machinery, staff, sales, and marketing, as well as turn a profit. This method occurs again down the supply chain once the importer, distributor, or retailer must sell the item at a cost where these costs can be recouped and a gain made. The importer must aspect in shipping and customs duty costs associated with obtaining the jewelry into the country, while a distributor might have to add costs for warehousing and storing the pieces. The final retailer will usually have costs of running a stone and mortar location and advertising to customers.
Marketing and Branding Costs
Your final cost worth separating from standard overhead costs involves the branding and marketing of certain collections. A sterling silver piece from Tiffany’s will cost more than one from Walmart. Such costs are the effect of the time and money the brand holders have put within their brand.