Cost of Marketing, Return on Investment, Exclusive Designs, Rare
Materials/Minerals have made Keystone obsolete
I had a retail Clothing & Jewelry Store in Upstate New York in the
Keystone was a terminology used by the garment industry. Simply put
it meant that the retail price that has been put on the garment by
its manufacturer was 100% above the retailers cost.
However in Jewelry the retail price was always 3 times cost. Unlike
clothing jewelry took a longer time to sell and the price of metal
fluctuated daily and it use to be mostly an upward trend. The cost to
replace inventory was taken into account.
Later Keystone markup meant twice the price of cost. Perhaps the word
Keystone came from Keystone State home of the Pennsylvania Dutch who
believe in Honor & Honesty.
In the early seventies when things were simple this worked fine and
most of the retailers held on to the prices till the end of the
season. Later in late eighties everything went down the tubes.
Discounts were given at the beginning of the season.
In the nineties Outlet centers had Retail prices & Markdown prices
printed on the tags from the manufacturers. And then further
discounts were given during the season. Late nineties the
manufacturers had their own outlet centers.
Now in the new Millennium. Huge corporations such as Home depot,
Sam’s, Costso, Office Depot, Victoria’s Secret, Target have a
different cost price than Little Vinny, Big Irving or Honest Tyron.
There is no guidelines on selling prices it has been replaced by
bottom line & quick bucks.
When you have jewelry being made in Thailand, India, Bali, Guatemala,
Ecuador of Gold, Silver, & Gem Stones using same material as a
designer in New York, San Francisco, or a jeweler in Little Rock,
Boulder, Asheville to an artist on a reservation or in a community on
what factors are going to determine your cost. Material & Labor cost
alone will never be enough. It is the Cost of Marketing, Return on
Investment, What the market will bear, If it is too hot get out
of the kitchen mentality that will survive unless you want to live in
My two cents worth