Wholesale Jewelry Sources

Sunday, May 28, 2006

Wholesale sterling silver jewelry Insider Secrets

Have you seen similar wholesale silver jewelry sold at price difference of two to three times from different retailers? Have you ever wondered how retailers mark up the jewelry after they get them from the venders? Here we will show you the wholesale trading secrets of sterling silver jewelry.

Price per gram The most important piece of information for determining the price of a piece of sterling silver jewelry is the price per gram of the silver. This is the fundamental raw material cost of a piece of sterling silver jewelry due to the fact that silver is considered a precious metal. For instance, the price for silver is $9.5 per ounce, the price per gram is determined by dividing the price per ounce by 31.5, which is 30 cents. Therefore, the cost for the raw material for a 5 gram wedding band ring is roughly $1.5. Some might wonder why people would pay $30 for a silver wedding ring when the silver only cost $1.5. The followings will explain the difference.

Labor cost To turn raw material into finished goods, it involves a great deal of processing cost. The metal itself has to be melted, molded and cast, polished and assembled. Most of the times, silver jewelry is accented with various stones, the costs for setting the stones are also a major part of the total cost for jewelry, especially for jewelry that requires high level of craftsmanship.

Other materials Also, the costs for any additional material are added to the jewelry. For instance, a pair silver pearl dangle earrings that has two cultural fresh water pearls with rhodium finish should cost double the price of the silver to make because of the cost of the pearl and rhodium. Note that rhodium is even more expensive than silver itself and it is high tarnish resistant.

Shipping cost Many styles of jewelry are imported from other countries because of difference in availability of raw materials such as stones and also the specialties in making some particular styles. Hence the shipping cost of transporting is also part of the cost. Usually, for imported sterling silver jewelry, the shipping cost can amount to 10% of what it costs to make the jewelry themselves.

Custom Duties For the same reasons, imported jewelry incurs duties at the custom. This is a cost that normal consumers are not aware of but it can also increase the price of sterling silver jewelry for 5% to 10%.

Price fluctuations Some sterling silver jewelry trader, especially wholesaler would associate the price of the jewelry with the current silver price. Therefore, the price of a piece of sterling silver jewelry might be different from month to month, and even day to day in the case of wholesale.

Business Overhead Just like any other business, the sales have to cover also the overhead of running the business. Normal overhead costs are employees' salaries, rent, utilities and breakage.

Profit Of course, the price you pay includes the profit for the sellers.

By knowing the above facts, you can make much more informed decisions when buying wholesale sterling silver jewelry and most importantly, avoid scams. There are occasions when people make fake silver jewelry and sell them at a very low price. If you know how to determine the cost of a piece of silver jewelry, you won't buy into deals where they offer you a price that is lower than the normal cost of real sterling silver jewelry.

About the Author
Greg Peterson got his MBA from MIT business school and is now working as marketing manager for jewelry distributors featuring wholesale sterling silver jewelry and wholesale hip hop jewelry featuring cubic zirconia stones.

Sunday, May 21, 2006

Wholesale Jewelry Trade Secrets #1

Wholesale Jewelry Trade Secrets #1

The #1 trade secret that jewelry stores don't want you to know is that the weight of the gold in gold jewelry makes up the majority of its cost. This rule applies to all precious metal jewelry, including silver and platinum. In the US, jewelry is weighed in grams. Some jewelry stores display the actual weight of each piece, while others do not.

Why don't some jewelry stores want you to know the actual weight? Because the easiest way to make gold jewelry cheaper is to use less gold and make it lighter. The main problem with using less gold is that the jewelry will usually be weaker and more likely to bend. Some jewelry stores that do not display the weight say that "fine jewelry" is not sold by the weight. Jewelry stores are not supermarkets, right?

How can this secret help you to make better decisions buying jewelry? Whenever you are shopping for precious metal jewelry, the first thing you should figure out is the price per gram. The average price per gram that we have found at the mall is $28 per gram for 14k gold, $36 per gram for 18k gold, $3 per gram for silver, and $75 per gram for platinum.

Knowing the price per gram will help you compare apples to apples. It is easy to compare prices for two gold bracelets if they are the same weight, style, and quality. But this is hardly the case.

Most jewelry stores have very similar items that differ greatly by weight and price. So in order to compare apples to apples, you must find the price per

gram at each store. As long as the quality and style are similar, the store with

the lower price per gram is always a better value. By negotiating with a sales

person based on price per gram, the sales person will know that you are a

knowledgeable jewelry buyer that cannot be duped.

The price per gram concept also applies to diamonds. All diamonds over $1000 should

come with a GIA certificate rating. When comparing two diamonds of the same rating,

the lower price is always a better value.

Trade Secret #1 Summary [X] Weight of jewelry determines value [X] Retailers purchase precious metal jewelry priced per gram, so should you. [X] In order to compare apples to apples, always figure out the price per gram

About the Author
Eugenia Bivines, MO USA Publishing information to help increase your bottom line by way of free resources for wholesale jewelry.