Inside of the Brain of David Geller
You may price your repairs and such differently but I’d like to share with you how I think.
NEW 3mm wide half shank
There are two numbers in play here: Materials and labor.
Our price book is based upon a 3 time markup on everything. A narrow half shank that is for a size 6.5 to 7 that is 3mm wide and 1.5mm thick sells for $244.00
How did I get that price?
As a bench jeweler I would cut my own sizing stock, not buy the shank. I figured the weight at 1.13 pennyweights. As I write this article on the Stuller website 14kt gold was $41.00 per pennyweight and I figured it weight 1.13 pennyweights. Cost would be $41 x 1.13 = $46.33.
On material I markup everything 3 times. We would sell this piece of sizing stock for $138.99. Round up the selling price to $139.00.
Now we have to install it.
If you look at a ring that’s going to be sized smaller as a clock we cut the ring at the bottom at 6 o’clock. Making a it smaller we’d charge $42.00.
If we install a half shank we will remove and install the piece of sizing stock at 9 o’clock on the left and 3 o’clock on the right. I figure those two as “sizing smaller’s” at $42.00 each side x 2 = $84.00 in labor.
But wait! If you solder on a piece of flat sizing stock it doesn’t match, you must shave it to look good. It doesn’t take a torch/solder to do that so I figure “shaping” is worth half the labor as sizing. Half of $42.00 = $21.00.
We add up $42 + $42 + $21 and we get $105.00 in retail labor including polishing the ring.
When I had our store we paid the jewelers 26% of the retail labor price, including polishing. So the labor cost to install and polish the half shank was $105.00 x 26% = $27.30 cost, paid to the jeweler. This is just a side note as most stores pay hourly wage. Your cost may not be $27.30 but if it takes a jeweler an hour or LESS wouldn't your cost be $27.00 or less? If so we are in sync!
We add the $105.00 in retail labor with the retail $139.00 selling price for the gold shank and we get a retail selling price for the half shank of $244.00!
No matter what YOU charge because repairs are trust sensitive and not price sensitive you’ll have a 90% closing ratio.
Director of Shop’s profits