Hi, I was given some rules of thumb by a friend. Do you think any of
them make sense ?
Retail Price = { 5-6 times x (cost of materials)} + other costs (eg
assay cost etc)
Wholesale Price (ie sale or return price) = 50% retail price
Direct sale (ie my own website or ebay) = 75-90% retail price
AND like for like a gold item sells for 5-6 times a silver item
(cant believe the last one is consistent with material cost
multiples… but there you go!)
Keith
Retail Price = { 5-6 times x (cost of materials)} + other costs (eg assay cost etc)
This one is a quick way to get into trouble. You need to learn what
all your costs are and not rely on marking up materials by some
arbitrary figure to develop your prices. Look in the archives there
has been lots of discussion on this.
Wholesale Price (ie sale or return price) = 50% retail price
I am finding that many retailers are wanting to markup at higher
rates (10% to 25% above keystone(50%)) so you may want to take that
into consideration when setting your price structure.
Direct sale (ie my own website or ebay) = 75-90% retail price
You should never, never undercut your suggested retail price or you
will really P.O. your wholesale customers big time.
AND like for like a gold item sells for 5-6 times a silver item
Again you need to know your cost of making the work before you can
figure a price. However it is true that similar items made in gold
and silver you can get a higher price for the gold above and beyond
the materials cost difference it has to do with perceived value.
Jim Binnion
James Binnion Metal Arts
Phone (360) 756-6550
Toll Free (877) 408 7287
Fax (360) 756-2160
@James_Binnion
Member of the Better Business Bureau