[Jewelry making - Article 00081] - Re: [Orchid] Wholesale -retail cost of gems

[Etienne Perret]

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    There has been quite a bit of discussion as to how much markup on
    should take in pricing their creations. I believe this is going at
    the problem from the wrong direction. 

    One must start at the consumer end when pricing a product. This
    could be it jewelry, books or tires. Look at what can one reasonably
    expect the customer pay for what you want to sell. This amount can
    often surprise you. Very few people expected the public to pay $3.00
    for a cup of coffee. Starbucks proved them wrong. Then you have to
    look at all the levels in the sales chain taking into account how
    much people you are selling to will need to earn to feel good about
    the transaction. This too can vary a great deal. Look how the
    airlines have reduced the commissions paid to the travel agents. 

    After you have figured how much everyone else will take you finally
    get to how much you can ask for the things you have made. The next
    step is to source your materials and labor. The more you drive down
    your cost the greater margin you can make between your cost and your
    sales price. In the end it is this margin that will determine whether
    or not you make a profit or not. A note of caution do all you can
    within your means to keep your overhead (all those other expense you
    will incur) to a minimum. If you are not careful they will eat you
    up. Best wishes, etienne AT etienne.com

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