How do I price lab-diamond silver jewelry for retail from a factory quote?

ZKZ Editorial TeamMain answer · Product & gemmology desk

Start from the landed cost of one sellable unit, which is the factory price plus everything it costs to get that unit to your customer, then add your operating costs and a margin you choose. Do not copy a markup from someone else's business, because your costs differ. Then check that any "was/now" price you show is honest.

Step 1: build the landed cost

Add to the unit price in the quote:

1. Shipping and insurance from the factory to you, shared across the units in the shipment.
2. Duties, taxes and customs fees in your country, and any broker charges.
3. Samples and tooling that you pay for, spread across the expected run.
4. Packaging such as boxes, pouches and cards.
5. Reports or certificates for the stones, if you add them.
6. Quality loss. Allow for pieces that fail inspection or are lost in transit.

Fact Under the Incoterms rules published by the International Chamber of Commerce, the point at which risk passes from seller to buyer depends on the trade term in the contract (for example, FOB or EXW). So check what the quote includes before you compare it with another.

Step 2: add your running costs

Our advice Include the costs that come after the sale: payment fees, platform fees, returns and refunds, customer service, marketing, storage and your own time. A price that covers only the product cost leaves nothing for these.

Step 3: choose a margin

Uncertain There is no standard margin, and we do not give a figure. Retailers choose a margin to cover running costs and still make a profit, and it varies by channel and price point. Work backwards from your costs and see what price the market will accept.

Step 4: check against the market

• Compare your price with similar products described in the same way: same metal, plating, stone weight and origin wording.
• Check what you can offer that others do not, such as better service or exchange terms.
• Adjust if your price is out of range, but do not cut below your costs.

Step 5: be careful with discounts

Fact The FTC Guides Against Deceptive Pricing say a "former price" should be a genuine price at which the item was offered to the public on a regular basis for a reasonably substantial period, so a "was" price that was never charged is misleading (16 CFR 233.1).

Our advice Set the regular price first, and offer a real discount from it, with a clear end date.

It depends A lower price is not always the right strategy. Customers also compare service, delivery and the clarity of the description.

Related reading: How to Compare Jewelry Manufacturer Quotations · Wholesale Lab Diamond Jewelry: What Buyers Should Verify

Sources

• ICC, Incoterms 2020 rules
• 16 CFR 233.1, FTC Guides Against Deceptive Pricing

Fact = stated by the cited source. Our advice = editorial recommendation. Uncertain / it depends = limits of what can be said in general.