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Recommended Retail Prices

This post will provide a general outline of pricing structures that we feel are appropriate for the jewellery we sell. You should take the figures laid down as you will, and don’t be afraid to throw them out entirely if they don’t fit your business model.

First of all: know your costs. In order to calculate what you should charge for a necklace, you need to know exactly what you paid for it. Let’s take item number 61457 as an example (one of 2013’s best sellers).


We sell this necklaces for £4.66 + VAT. Assume that you are a small, non-VAT registered business, and that you sell each item packed in an organza bag. Your immediate costs for this necklace would be:

  • Cost price: £4.66
  • Single Organza bag: £0.09
  • Portion of shipping charge: £0.40
  • Vat @ 17.5%: £0.90

This brings the total cost price of this necklace to £6.05. This would be reduced if you placed larger orders and availed of free shipping, but let’s assume you place small £100 orders each week. You will also need to be aware of extra costs that are not directly linked to the necklace itself (rent, transport, wages, etc.), but that’s not something we are in any position to guide you on.

Our rule of thumb for setting a retail price is: Times Three, + or – 20% depending on the expectations of your retail establishment and your customers. This makes the Recommended Retail Price of the necklace £14.52 – £19.25. A High Street shop might charge £19.95, a Party Planner might charge £17.95, a market trader might charge £14.95. If you charge £8.00 for this necklace, you will not be in the jewellery business this time next year.

Using the same formula (Times Three, + or – 20%), and assuming that you are availing yourself of the free shipping that applies to orders above £200, the following Recommended Retail Prices could be set:

Necklace 61417, selling for £2.97 + VAT.
RRP: £7.13 – £10.69


Bracelet 9864, selling for £3.66 + VAT.
RRP: £8.78 – £13.18

Charm Bracelet

Fashion Ring 3784, selling for £1.29 + VAT.
RRP: £3.10 – £4.64.
Be careful not to over price fashion rings.

Fashion Ring

Ladies Watch 3318, selling for £6.65 + VAT.
RRP: £15.90 – £23.94.

Ladies Watch

These are recommendations only, and should be adapted to suit your own circumstances. When in doubt, you should select the middle of the price range, with is total cost price * 3 . Many years ago, when we sold as retailers ourselves, we tended towards lower prices, preferring to pile them high and sell them cheap, but this approach may not appeal to all retailers.

05 Aug 2010

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