How to Price Your Handmade Silver Jewellery: A Simple Formula for Wholesale and Retail
Pricing your handmade jewellery can be one of the most difficult aspects of running your own jewellery business, but it doesn't have to be! I've spent years figuring out what works, and I'm here to share the simple formulas that take the guesswork (and guilt!) out of pricing.
Many jewellers undercharge, which not only undervalues their work but makes it harder for the entire industry. With these formulas, you'll price confidently and sustainably, whether you're selling wholesale, retail, or both.
In this guide, you'll learn the exact formula I use, how to calculate wholesale vs. retail prices, how to handle expensive gemstones, and real-world examples you can apply immediately. There are many different ways to price your work, but here I'll break down the tried and tested formulas that work for me so you can take the guesswork out of pricing.
Don’t forget to factor in your Admin time: photographing, listing, packing, and posting your pieces
What You Need to Account for When Pricing
Before we get to the formulas, let's break down exactly what costs you need to factor in. This is where most jewellers go wrong: they forget the little things that add up quickly.
1. The Cost of the Materials
This will include all the metal: sheet, wire, silver clay that you used to make your piece, as well as findings such as jump rings, chains, earring posts, etc.
Don't forget to include the little things such as solder, oxidising solution, moulding compound, etc. All of these are important extras that you mustn't forget about.
🔔 Pro Tip: Keep a detailed materials pricing list that you update regularly, especially when silver prices fluctuate. This will save you time and ensure your pricing stays accurate as costs change.
Members: Click here for the Materials Pricing List Template to track all your material costs in one place. no more hunting through receipts or guessing what you paid for that last sheet of silver!
2. Your Time
This is the trickiest one to work out, as you need to put a value on your hourly rate. This number varies depending on where you are in the world, your skill level, and your cost of living. But it's really important that you don't undervalue yourself.
Don't forget to include:
Design time the hours spent sketching, planning, and refining your concept
Consultation time any time spent communicating with clients or discussing custom orders
Making time the actual hands-on work at the bench
Finishing time polishing, oxidising, quality checks
Admin time photographing, listing, packing, and posting your piece
It all counts.
How to Calculate Your Hourly Rate:
Not sure what hourly rate to charge? This is such an important topic that I'm writing a complete guide to help you calculate your hourly rate as a handmade jeweller:
3. Packaging
The box or bag you put your jewellery in, the tissue paper, business cards, and the paper and ink you use all have a value.
What to Include:
Jewellery boxes or pouches
Tissue paper or padding
Business cards
Thank-you notes or care instructions
Postage materials (envelopes, bubble wrap, labels)
Even if each item only costs a few cents, when you're making multiple pieces, it adds up quickly. Factor in an average packaging cost per piece: for example, €2-€5 ($2-$5 / £2-£4) depending on your presentation style.
4. The Extras
Sometimes there will be extra costs that you need to include, such as:
Hallmarking if applicable and required by law
Bench hire if you're using a communal workspace
Travel if you're visiting a client rather than having them visit you
Photography if you hire a professional photographer
Website fees, payment processing fees, or marketplace commissions
These costs should be factored into your overall pricing strategy, even if they don't apply to every single piece.
Common Pricing Mistakes to Avoid
1. Undervaluing Your Time
This is the biggest mistake new jewellers make. You are a skilled artisan. Your time, training, and expertise have value. Don't fall into the trap of charging less because you "enjoy" making jewellery. Passion doesn't pay the bills.
2. Forgetting the Small Costs
Solder, polishing compounds, packaging, and postage all add up. Track everything, even the tiny expenses. The Materials Pricing List Template (available to Members) makes this so much easier!
3. Comparing Yourself to Mass-Produced Jewellery
Your work is handmade, unique, and crafted with care. It's not comparable to factory-made pieces. Price yourself accordingly.
4. Being Afraid to Raise Your Prices
As your skills improve and your reputation grows, your prices should reflect that. Don't be afraid to increase your rates as you gain experience.
5. Not Tracking Your Time
When you're starting out, track how long each piece takes you. You might be surprised! This data will help you price accurately and improve your efficiency over time.
The Formula: Simple, Fair, and Profitable
Many jewellers have different formulas for pricing their work, but this formula will ensure you are making a profit whether you're selling wholesale or retail, and will enable you to work simultaneously with both.
Wholesale Price Formula:
(Material Costs + Packaging Costs + Additional Costs) x 2 + Time = Wholesale Price
Retail Price Formula:
Wholesale Price x 2.5 = Retail Price
Why This Formula Works
This isn't just arbitrary maths, it's based on industry standards and real-world business needs. By following this formula, you're pricing like a professional jeweller, and not undervaluing your work.
Doubling your material costs protects you when silver prices fluctuate (and they do!). It also builds in a buffer for waste and the occasional mishap, and ensures you are still making a profit when selling wholesale (to shops and galleries).
Multiplying your wholesale price by 2.5 gives you a healthy retail margin. This allows you to:
Sell your pieces at the same price point as your retail outlets and galleries (this is extremely important)
Be able to offer occasional discounts to your direct customers without losing money
Be able to reinvest in your business (new tools, materials, education)
⚠️ Expensive or Fragile Gemstones? Triple the gemstone cost in your calculation. This protects you if you break it and need to replace it. Better to have a buffer than be out of pocket!
Learn how to price rings like these below, and learn how to make them here
Example: Pricing a Cabochon Gemstone Ring
Let's walk through a real example so you can see the formula in action.
Materials:
Silver wire: €2.50 ($2.70 / £2.15)
Silver sheet: €4 ($4.30 / £3.45)
Bezel strip: €1.50 ($1.60 / £1.30)
Gemstone (semi-precious): €5 ($5.40 / £4.30)
Solder & polishing compound: €1 ($1.10 / £0.85)
Total: €14 ($15 / £12)
Packaging:
Ring box, tissue paper, business card: Total €3 ($3.25 / £2.60)
Time:
Design and making: 1.5 hours at €20/hour ($22 / £17): Total €30 ($32 / £26)
Additional Costs:
None for this piece
Step 1: Calculate Material Costs
Silver, Gemstone and Packaging: €14 + €3 = €17 ($18 / £15)
Step 2: Apply the Wholesale Formula
(Material Costs + Packaging Costs + Additional Costs) x 2 + Time = Wholesale Price
€17 x 2 + €30 = €64 ($69 / £55)
Wholesale Price = €64 ($69 / £55)
Step 3: Calculate Retail Price
€64 x 2.5 = €160 ($173 / £138)
Retail Price = €160 ($173 / £138)
As you can see, the formula is straightforward, but doing the maths manually for every piece gets tedious fast.
Save Time with the Pricing Calculator
Doing these calculations for every piece you make can be time-consuming, especially when you're juggling multiple projects or working on custom orders with different materials and gemstones. That's why I created the Pricing Calculator exclusively for Cognac Jewellery School Members. Simply input your material costs, time, packaging, and any additional costs, and it instantly calculates your wholesale and retail prices for you. No more manual maths, no more second-guessing, just fast, accurate pricing every single time.
Price Yourself Fairly
Pricing your work fairly isn't just about making a profit, it's about valuing yourself, your skills, and the time you've invested in learning your craft. When you price yourself correctly, you create a sustainable business that allows you to keep making beautiful jewellery for years to come.
Remember: the right customers will see the value in your work. Don't undercut yourself to compete with mass production. Stand confidently behind your pricing, knowing that every piece you create is unique, handmade, and worth every penny.
Frequently Asked Questions
Q: What if my prices seem too high compared to other jewellers?
A: Remember, you're not comparing like with like. Your work is handmade and unique. If your prices reflect your costs, time, and skill, they're fair. The right customers will appreciate the value.
Q: Should I charge more for custom or bespoke pieces?
A: Absolutely. Custom work involves extra consultation time, design revisions, and often more complex making. Factor in all of that time and charge accordingly.
Q: How often should I review my pricing?
A: At least twice a year, or whenever there's a significant change in material costs (like silver prices going through the roof!). Also review your hourly rate annually as your skills and experience grow.
Q: Can I offer discounts without losing money?
A: Yes! If you're using the 2.5x retail multiplier, you have room to offer discounts without dipping below your wholesale price. Just don't discount too often, or customers will expect it.
Q: What if I'm just starting out and don't feel confident charging these prices?
A: Start with a fair hourly rate for your skill level, and increase it as you gain experience. But never undervalue your materials or time. Confidence in your pricing comes with practice, and the right pricing formula gives you that confidence.