By: Barb H
Your latest jewellery piece was a labor of love. However, you still want a good return on investment (ROI) when selling that unique and original designer piece. So how do you get that impressive 300% return?
Definition of the Month: ROI
ROI is a business term and way to measure the performance of an investment or the how efficient that investment actually is compared to its actual cost.
Cost vs. Value of the Finished Product
A custom piece always has a higher value as a finished product than anything mass-manufactured. The first step to ensuring your ROI for a piece is worthy, is to calculate the actual cost of materials and any overhead expenses. If making several different pieces that will feature the same materials but with unique designs or signature stones, it can help keep cost down to purchase what you can in bulk — this helps increase the overall ROI later.
Can you place an actual dollar amount on your talent and design ability? Or on the time it takes to handcraft a piece of original jewellery? Yes, you can. You can determine your personal hourly rate and that number then is included in the value of the finished product.
Jewellery Pricing Formula
Jewellery Making Journal offers a fairly comprehensive jewellery pricing formula to help you determine the value of a finished product. They recommend to multiply your cost of materials + packaging x 4 in order to set the price high enough to meet your desired ROI. Using a formula like helps to ensure you won’t lose money. Your work is valuable, original, and deserves the recognition.
Look to The Den to join one of our amazing workshop where you can expand your jewellery making skills, including soldering arts. Our talented goldsmiths and artisans are ready to work with you today.