When I had my store (sold it in Jan 2000) we did 1.8 million in
sales, 3/4 of that from the shop. My price book was developed froma
time study and paying commission. You don't have to pay commission to
the jeweler to make money, just know how much to charge.
Paying commission helped me find the right price. We pay the jeweler
26% of the labor. Add in matching taxes and such and the jeweler
costs you 33%.
You want a 3 time markup on labor.
Then add in materials, usually 3 time, up to about $300 cost.
Paying jewelers on commission told me the price was right. If I
charge $500 to hand carve, cast and polish (gold extra) and I pay the
jeweler who did ALL OF THAT WORK 26%, then SHE ( ) would be paid
26% of the $500 OR $130.00.
If she spent, with interruptions, 5 hours, divide $130 pay by 5 and
she made $26 per hour. Does $26 per hour make an employee happy? If the
answer is yes then I know one big thing:
"$500 is the right price to charge because with a 3 time markup the
jeweler is paid over $50,000 a year"
If on the other hand the jewelers take 9 hours to do that job, 9
divided by $130 equals $14.44 an hour. If that's too low of a wage,
then either the jeweler is too SLOW or we don't charge enough.
If you or someone else can do it faster, get that person to do the
job and charge $500.
But if no one is fast enough to take a 9 hour job down to 5, RAISE
the price to $865 and she'll make $25 an hour.
That's how I did my book. I know my prices are correct.
Here's the stats:
A. I have 2 books. Version 3.2 is good for jewelers with 2 things
1. Average product sale is LESS than $300
2. The jeweler is paid UP TO $35,000 a year.
B. Version 4.0 is good for stores with:
1. Average product sale over $350.
2. Jeweler earns $40,000 to high $50's a year.
When 10 customer walk into a store looking for a showcase piece,
TYPICAL stores sell only 3 out of the 10 (30% closing ratio)
When 10 customer walk into a store looking for a repair, TYPICAL
stores sell 9 out of the 10 (90% closing ratio) NO MATTER WHAT YOU
When 10 customer walk into a store looking for a custom piece,
TYPICAL stores sell 7 or 8 out of the 10 (70-80% closing ratio) NO
MATTER WHAT YOU CHARGE!
You should be more worried that when 70% of customers walk after
looking in the case, leaving you with over 1/2 million dollars in
unsold OLD inventory than a few walking from a custom job.
As a gift, here are the custom design prices for version 3.2 and
version 4.0. LABOR ONLY, charge extra for gold.
You can see more of my book at my site, comes with 30 day money back
guarantee and CD's to train the staff.
There's also a free 10 page sample there to download as a pdf file.
CUSTOM PRICING 3.2:
$425.00 Ring, hand carved, Gold
$475.00 Ring, Detailed hand carved, Gold
$600.00 Ring, Filigree - 1, up to 1 stone hand carved, Gold
$700.00 Ring, Filigree - 2, 2 or more stones, hand carved, Gold
$675.00 Jaws Ring guard, hand carved, Gold
$325.00 Shadow wedding band, no stones, single (1), Gold
$500.00 Shadow wedding band, no stones, double (2), Gold
$350.00 Shadow wedding band, with stones, single (1), Gold
$625.00 Shadow wedding band, with stones, double (2), Gold
$120.00 Two Piece Casting - small area, Gold
$190.00 Two Piece Casting - medium to large area, Gold
$285.00 Three Piece casting, Gold
$180.00 Two Piece Casting - small area, Plat
$280.00 Two Piece Casting - medium to large area, Plat
$405.00 Three Piece casting, Plat
$35.00 Exchange one color of gold for another
$35.00 Exchange Dental gold for other gold
$35.00 Alloy a higher karat gold to a lower karat gold.
$35.00 Alloy a lower karat to a higher karat
CUSTOM PRICING 4.0
Custom Design-Carve, Cast & Finish
In Gold In
Shadow Wedding Band (1) - Plain $400.00 $475.00
No stones. Contured to fit customers
Shadow Wedding Band (1) - For round stones $450.00 $525.00
Contoured to fit customers engagement ring.
Layout for round stones.
Shadow Wedding Band (1) - For fancy stones $500.00 $575.00
Contoured to fit customers engagement ring.
Layout for fancy stones. i.e. princess cuts.
Typical Rings: Custom Designed, labor only
In Gold In Plat
Ring - Normal $530.00 $600.00
Ring - Detail 1 $595.00 $675.00
Ring - Detail 2 $700.00 $775.00
Ring - Detail 3 $875.00 $950.00
Additional Assembly Charges
2 piece casting, small area $145.00 $188.00
2 piece casting, large area $235.00 $320.00
3 piece casting $325.00 $410.00
These are the prices to carve a wax, invest, cast with someone's
metal (if yours, charge extra) and to file up and polish. The "PLAT"
column is more labor because polishing plat is a pain.
For some of you this is scary. But look at the "I don't make any
I almost went bankrupt in 1986 doing as many of you do. Then I went
to commission and 5 years later did the book to help my 5 member
sales staff price without me. I had the costs for labor (commission)
and the cost of parts from Stuller, only took 2.5 years to make it a
When we opened the book up and pointed, here were the stats
90% of customers bought the repair
70-80% of customers bought the custom job.
ABOUT the same as when I was lower in price. Even then, with higher
prices we delivered custom in 6 WEEKS.
You have to advertise it too. We advertised every week in the paper
that we did custom.
When charging the customer for custom, make 2 columns on a piece of
Add up parts and pieces for both, then ADD THE SUBTOTALS together.
If the customer squawks you can talk more about them and IF you have
to come down "We can't discount labor, but maybe I can do better on
Any questions, happy to answer them
510 Sutters Point
Atlanta, GA. 30328
(404) 255-9565 Voice
(404) 252-9835 Fax