I really need your input.
I normally sell my jewelry wholesale, but took a consignment order
just this weekend. Long story short…my husband and I own a
winery…that’s our real jobs and seven years ago I also started
making jewelry. The store I took the consignment order from is a
large gift shop in a city and also has a wine tasting bar. They have
been selling our wines for years. The owner will only sell jewelry on
consignment, so I thought what the heck I’ll try it.
She told me to give her an invoice for what I need from the jewelry
and then she would mark it up 40% (I would get 60%) of the sale.
I use Jewelry Designer Manager and for instance on one of my
sterling silver bracelets, my wholesale price would be $55 and my
profit is 27.53, direct price would be $65 and my profit is 37.53,
retail price would be $75 and my profit is $47.53. I gave her Direct
prices on everything thinking she would take $65 x 1.4 and that would
mark the bracelet up 40% to $91.
She uses a chart that she says she’s used for years. It shows that
if I need $65 the retail price would be $108.55. Then she would take
$108.55 divided by 1.67 and that would give me my $65.00. The
employee who was marking my jewelry up asked me if this was right
and I didn’t think it was. Both of us couldn’t understand the method.
I visited with the owner about it and I really didn’t want to upset
her, so I told her to mark them the way she’s always been doing it
and I would take another look at it over the weekend and get back to
her. I’ve know her for a long time, so I’m not worried about our
relationship… I know she also wants it to work for me.
So my question to you is, is she pricing things correctly or should I
have given her my wholesale prices?
Thanks so much,