How to Price Handmade Swarovski Jewelry
Swarovski jewelry components are among the best materials that an independent jewelry designer can include in their creations. The name Swarovski has a reputation for beauty and quality in all jewelry markets. Establishing a selling price for handmade Swarovski jewelry is the same as establishing a sales price for any type of handmade jewelry item; you must calculate your overall costs and factor in a profit.
Other People Are Reading
Instructions
-
-
1
Calculate the cost of the materials in each piece of your handmade Swarovski jewelry. This will include the crystals, beads, threading material and clasps. Any component that you include in your jewelry designs should be included in this calculation.
-
2
Establish an hourly wage for making your jewelry. There are a few ways to determine an hourly wage. Decide what your time is worth based on your skill level, education and reputation. Another way to approach this is to calculate the minimum hourly wage you would need to meet your monthly expenses if you were making jewelry full time. For example, if you need $2000 each month to live, divide 2000 by 160 to determine an hourly wage based on a 40 hour work week in a four week month. Another way to decide on an hourly wage is to consider making jewelry as a replacement for your current full-time income. If you are currently earning $20 per hour, you can use this number as your hourly wage for your jewelry designs.
-
-
3
Multiply the amount of time you spent working on the handmade Swarovski jewelry times your hourly wage to establish your labor costs.
-
4
Establish your overhead cost percentage for your jewelry business. Overhead costs include rent, utilities, insurance, advertising and transportation. If you sell your jewelry at craft shows where booth rental and entry fees are a factor, remember to add in the costs of these expenses. Add all of the overhead costs together for one month's expenses. Divide the monthly overhead expenses by the monthly labor and material costs to calculate a percentage that you can factor into your sales price. For example, if your overhead costs each month total $800 and your monthly labor and materials costs total $3200, your overhead percentage would be .25 or 25 percent.
-
5
Add the materials costs to your labor costs for each handmade piece of Swarovski jewelry. Multiply the total by your overhead percentage and add in this figure to the total of the materials and labor to establish your total costs.
-
6
Add a profit percentage to the overall costs of each jewelry piece to determine the wholesale price of each jewelry item. Your profit percentage should be based on your creativity and skill as well as on the risk factors involved in making the jewelry. Profits between 10 and 20 percent of the total costs are average in the wholesale market. For example, if your overall costs for one handmade piece of Swarovski jewelry is 17.00 and you decide that you would like to earn a profit of 15%, multiple 17 times .15 to calculate a profit of $2.55 for that piece. Add this amount to the overall cost and your wholesale price is $19.55.
-
7
Double the wholesale price to determine the retail price for each jewelry piece.
-
1
