Good morning.
I’ve been unable to find answers to my concern in the archives. I’m hoping someone here can share a way to figure current retail pricing on previously purchased commercial sterling silver chains.
Adjusting the price to cover replacement cost at current market is my problem and I would appreciate any suggestions in how to handle this.
For instance, if silver prices are double what they were when I purchased, doubling what I paid for each chain is not equal to the current replacement cost and I’m unsure whether doubling the price per gram is the right approach either.
Over the years, I’ve purchased multiple sterling chains in various styles, lengths and thicknesses. At a given silver value, the price per gram varies with the chain style, thickness and perhaps (?) intricacies of manufacturing and I maintain a record of the basis for each purchase and the then-current silver prices.
I’d like to be able to create something like a sliding scale of price per gram fluctuations based on silver price of “X”, “Y” or “Z” but don’t know how to go about it.
Thanking you in advance for any assistance in sorting this out.
Pam,
Take a look at this and tell me if it is what you are looking for. Obviously any given day’s market price could be substituted and so long as units are the same for market and product cost (oz, oz troy, g) it should work.
x= cost per oz at time of purchase for finished stock
y= market price per oz on date of purchase
z=x/y percent markup for refining and manufacturing cost
current equivalent cost would be
c= current cost for finished stock
cy = current day market price per oz
c= z*cy
this should result in cost increase by percentage which may not be a true representation based on static refining and manufacturing costs but should serve as a good guideline
x=22
y=14
z=x/y
z=~1.57
c=z*cy
cy=24
c=37.68
I always price the metal content of older pieces at what it would cost to replace it today at today’s market price. If you know what you paid for the chain, either price a current day equivalent or figure out what you paid per gram and calculate a ratio of the spot price when you bought the chain to the spot today and then increase the price per gram by this factor. I don’t sell chains. I do sell pendants and sometimes a customer either doesn’t need a chain or needs a chain of a specific length. If I try to sell the pendant with a chain, it is always the wrong length. My solution is to buy fairly inexpensive chains and offer them in various lengths separate from the pendants. Right now the price ends up being about a $1.00/inch for fine sterling silver chains. Good luck…Rob
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