For a jewelry brand aiming for profit, understanding the true component costs in a wholesale price is paramount. It’s never just the price of the metal. By dissecting the final unit price, you can better negotiate with manufacturers and correctly set your retail margins.
The 4 Pillars of Wholesale Jewelry Cost
- Raw Material Cost (50-65%): This is the market price of 925 sterling silver and any accompanying gemstones (CZ, semi-precious stones). Note that this price fluctuates daily, and the manufacturer will lock in the price based on the date the order is confirmed.
- Labor & Manufacturing Cost (20-30%): This includes the labor for casting, soldering, stone setting, and polishing. Complex designs with intricate filigree or hand-set micro-pave stones carry higher labor costs.
- Finishing & Plating Cost (5-10%): This covers the cost of high-quality plating (e.g., rhodium, 18K gold vermeil) and electro-coating (E-Coat) for anti-tarnish protection. High-quality plating is essential for longevity and costs more.
- Overhead, QC & Logistics (5-10%): This includes factory overhead, mandatory quality control (QC) checks, and necessary administrative costs.
The Profit-Maximizing Partnership
The goal of a high-volume wholesaler is to use their scale and efficiency to drive down the labor and overhead costs (Pillars 2 & 4).
A veteran manufacturer like JewelryODM, which has been operating as a professional 925 silver jewelry manufacturer and wholesaler for over 20 years, achieves this through optimization. By providing a truly one-stop supply chain service—handling design, sampling, production, QC, and international logistics—they systematically remove unnecessary friction and fees typically added by intermediaries. This core focus helps their global clientele, including e-commerce sellers and retail brands, to directly achieve their core objective: lower cost and increased profit.