How to Price Handmade Jewelry
Master the art of profitable jewelry pricing with our proven formula used by successful artisans. Calculate the perfect price that covers costs and generates healthy profits.
Professional Jewelry Pricing Formula
The proven formula that successful jewelry makers use:
Price = (Materials + Labor + Overhead) × (1 + Profit Margin%)
Materials
Wire, beads, findings
Labor
Your time × hourly rate
Overhead
Tools, workspace, utilities
Profit
50-100% markup
Step-by-Step Pricing Process
Calculate Material Costs
List every component and its cost
What to Include:
- Metal wire or sheet (cost per inch/gram)
- Beads, stones, pearls (individual cost)
- Findings: clasps, ear wires, jump rings
- Add 10% for waste and small components
Example:
Sterling silver wire: $0.50, Gemstone: $8.00, Findings: $2.50 = $11.00 total
Calculate Labor Costs
Value your time appropriately
What to Include:
- Track time for each step: design, cutting, assembly, finishing
- Set hourly rate: $15-50+ based on skill level
- Include time for photography and listing
- Advanced techniques command higher rates
Example:
2 hours × $25/hour = $50.00 labor cost
Add Overhead Costs
Account for business expenses
What to Include:
- Tools and equipment (amortized)
- Workspace costs (studio rent, utilities)
- Business expenses (insurance, licenses)
- Typically 15-25% of materials + labor
Example:
($11.00 + $50.00) × 20% = $12.20 overhead
Apply Profit Margin
Ensure sustainable profitability
What to Include:
- Wholesale: 50-100% markup minimum
- Retail: 100-200% markup typical
- Luxury/custom: 200-400% markup
- Consider market positioning
Example:
($11.00 + $50.00 + $12.20) × 2.0 = $146.40 final price
Real Pricing Examples
Silver Stud Earrings
Simple
Gemstone Pendant
Intermediate
Custom Wedding Ring
Advanced
Beaded Bracelet
Simple
Wire-wrapped Ring
Intermediate
Statement Necklace
Advanced
Avoid These Common Pricing Mistakes
Underpricing Errors
- • Not charging for your time
- • Forgetting overhead costs
- • Using "hobby" hourly rates
- • Competing only on price
- • Not accounting for all materials
Market Positioning
- • Comparing to mass-produced jewelry
- • Not highlighting handmade value
- • Ignoring your unique style
- • Underestimating skill level
- • Not researching competitor prices
Market Research & Positioning
Know Your Audience
Understand who buys handmade jewelry and what they value: uniqueness, craftsmanship, personal connection, and story.
- • Gift buyers seeking unique pieces
- • Fashion-conscious consumers
- • Supporters of handmade businesses
- • Custom/personalized jewelry seekers
Research Competitors
Study similar handmade jewelry sellers to understand market pricing. Look at quality, materials, and complexity.
- • Etsy shops in your category
- • Local craft fairs and shows
- • Social media jewelry makers
- • Boutique and gallery prices
Value Proposition
Clearly communicate why your jewelry is worth the price. Highlight quality, craftsmanship, and uniqueness.
- • Premium materials and findings
- • Exceptional craftsmanship
- • Unique design aesthetic
- • Custom options available
Professional Jewelry Tools
Complete your jewelry business setup with these essential calculators