costs-to-start-jewelry-business:-store,-online-&-handmade

Costs to Start Jewelry Business: Store, Online & Handmade

Wondering how much it costs to start your jewelry business? Check out these four detailed start-up costs lists to help you plan your jewelry store opening, the launch of your online jewelry site, your career as an independent jewelry consultant, or the making and selling of handmade jewelry items. 

These jewelry costs lists include setup costs, inventory, and ongoing overhead, plus monthly expenses that you must budget into your business plan for accurate financial projections. 

Go ahead and jump directly to the list for your desired type of jewelry business:

Costs Required to Start Jewelry Businesses

This list of costs and expenses for opening various types of jewelry businesses is broken down into three parts – startup costs, inventory & supplies, and overhead ongoing expenses. 

Set up costs are the initial amount of capital to buy inventory, make rent deposits, and building renovations. 

Overhead are the costs that your store, website, or manufacturing shop you will incur on an ongoing and monthly basis. 

Costs to Open a Retail Jewelry Stores – Brick and Mortar or Online Store

These are the costs required to start a retail jewelry store either physically in your area – or online – selling fine, vintage, fashion, and gold jewelry directly to customers.  

Retail Jewelry Store Startup Costs – Brick and Mortar

The total cost to open a retail jewelry store is $9,200 – $29,000 which includes set-up costs of business registration, rent deposit, building renovations, display cases, logo design, advertising, and inventory purchasing. 

 Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Logo Design, business cards & signs – $0 – $2,500. 
  • Website – $19.99 – $599 
  • Telephone – $9.99 – $50  
  • Rent deposit  – $2,000 – $5,000, 
  • Store Renovations – $2,000 – $3,500  
  • Display Cases – $4,000 – $10,000  
  • Display items, shelves, and tables – $100 – $1500
  • Launch events – $100 – $2,500 
  • Advertising campaigns – $500-$7,500  
  • Social Media – Under $25 per month 

Inventory & Supplies Materials

  • Initial Inventory – $1,500 – $4,500 3X amount of inventory you sell monthly.  
  • Jewelry Making Materials – $250 – $4,000 
  • Labor costs $ 500 for manufacturer packaging
  • Supplies – $150 Office supplies
  • Packaging, boxes, etc Shopping Bags & Wrap – $300 – $800 

Total Start-up Costs = $9,200-$29,000

Overhead and Ongoing Expenses

  • Inventory & Manufacturing Supplies – $500 – $5,000  
  • Telephone – $25 on average
  • Software – $20 – $150 
  • Web Hosting – $4.99 month with Bluehost deal here
  • Advertising – $1,500-$3,000 monthly
  • Labor – salespeople, jewelers, display window merchandisers, security $4,000 – $12,000
  • Owner Salary – $4,200 monthly
  • Utilities – $600
  • Cleaning services – $300

Online Jewelry Web E-commerce Store Startup Expenses

The total cost to begin an online jewelry store is $3,030 – $15,050 which includes set-up costs, legal business registration, logo design, social media, website development, online advertising, and inventory purchasing. 

 Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Logo Design, business cards & signs – $0 – $2,500 
  • Website – $50 – $2,500
  • Telephone – $9.99 – $50  
  • Display props and shelves  – $100 – $1500 (for photoshoots and inventory storage)
  • Online advertising campaigns – $500-$7,500  
  • Social Media – Under $25 per month 

Inventory & Supplies Materials

  • Initial Inventory – $500 – $4,500 3X the amount of inventory that you plan to sell monthly.  
  • Jewelry Making Materials – $250 – $4,000 
  • Labor costs $ 500 for manufacturer packaging
  • Supplies – $150 Office supplies
  • Packaging, boxes, ertc Shopping Bags & Wrap – $500 – $1,500 

Total Start-up Costs = $3,030 – $15,050

Overhead and Ongoing Expenses

  • Inventory & Manufacturing Supplies – $500 – $5,000  
  • Telephone – $25 on average
  • Software – $20 – $150 
  • Web Hosting – $4.99 month deal at BlueHost
  • Shipping costs to customers – $250 -$1,200
  • Advertising – $1,500 – $3,000
  • Labor – web developer, graphic designer, photographer, customer service reps, shipping clerks $1,500 – $6,000  
  • Owner Salary – $4,200
  • Utilities – $4,200 monthly

Start-Up Costs for Home-Based Jewelry Businesses

It costs $ 604 – $16,300 to start a home-based jewelry business. Start-up costs vary depending upon the type of home jewelry company you want to launch; home jewelry shows, network direct sales, craft, and art shows, vintage jewelry resale, online jewelry boutique, or crafting handmade jewelry for sale at wholesale or retail. Keep reading for detailed expense lists below. 

Making Handmade Jewelry Starting Expenses

The total cost to begin a handmade jewelry business is $3,285 – $16,300 which includes set-up costs, legal business registration, logo design, social media, jewelry making supplies, website development, and advertising. 

Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Logo Design, business cards & signs – $0 – $1,500. 
  • Website – $250 – $1,500
  • Telephone – $9.99 – $50  
  • Equipment & Tools -$250 – $1,200 
  • Display props and shelves – $350 – $750 (for photoshoots and storage)
  • Camera or photography services – $500 – $1,500 
  • Advertising campaigns – $500-$7,500  
  • Social Media – Under $25 per month 

Inventory & Supplies Materials

  • Jewelry Making Materials – $250 – $4,000 (to make new inventory after items sell) 
  • Labor costs $ 500 – $1,500 for jewelry crafters makers
  • Supplies – $150 Office supplies
  • Packaging Boxes, Shopping Bags & Wrap – $500 – $1,700 

Total Start-up Costs = $ 3,285 – $16,300

Overhead and Ongoing Expenses

  • Inventory & Manufacturing Supplies – $500 – $5,000  
  • Transportation Costs – $250-$2,000 for travel to craft shows and traveling expenses
  • Show Fees – $100 – $1,700 for fees paid to organizers for displaying at shows.
  • Telephone – $25 on average
  • Software – $20 – $150 accounting, POS credit card processing, graphic design
  • Web Hosting – $4.99 month at Bluehost
  • Shipping costs for merchandise to store or customers – $750 – $1,200
  • Advertising – $1,500 – $3,000
  • Labor – salespeople, jewelers, shipping clerks – $1,500 – $6,000
  • Owner Salary – $4,200

Independent Jewelry Consultant Startup Costs

The startup costs to sell jewelry as a home-based consultant is $604 – $3,153 and depends upon which direct sale company you represent. In addition to your starter kit of sample jewelry and marketing materials, you will incur costs for legal business registration, social media, transportation, and office supplies. Keep reading for total startup costs lists. 

Set-Up Costs 

  • Legal Business Registration  $0 – $79 for LLC, DBA, or INC. Get the Incfile $0 deal today
  • Business cards & catalogs- $100 (sometimes included in starter inventory kit)
  • Starter kit of jewelry samples and marketing materials $49 – $599 (see list of direct sale jewelry companies with kit costs here)  
  • Website – $19.99 – $250
  • Telephone – $9.99 – $50  
  • Equipment – $0-50  for POS to charge customer credit cards
  • Promotion campaigns – $150 – $1,500  
  • Social Media – Under $25 per month 

Inventory & Supplies Materials

  • Inventory – $0 (vendor sends your customer order directly so no need to buy initial inventory)
  • Supplies – $150 Office supplies
  • Packaging, boxes, ertc Shopping Bags & Wrap – $100 – $350

Total Start-up Costs = $ 604 – $3,153

Overhead and Ongoing Expenses

  • Telephone – $25 on average
  • Software – $20 – $100 POS credit card processing, graphic design 
  • Web Hosting – $4.99 month at Bluehost

FAQ: Jewelry Business Startup Costs

Is owning a jewelry store profitable?

Jewelry stores are amongst the most profitable types of retail stores. Forbes reports that jewelry stores are highly profitable and generate pre-tax net profits of 5.94% as compared to the least profitable office supply stores at 1.57%.

How much does a jewelry business owner make?

On average, US-based jewelry store owners make an annual salary of $40,254. As reported by Salary.com the lowest salaries for jewelry owners is $25,670 and the highest at $59,182.  Jewelry designers make an average of $47,000 annually according to Glassdoor. Wages for independent jewelry sellers consultants average $24 per hour says Indeed.com

What is the average profit margin for jewelry items?

The average gross profit percentage of jewelry items is 42 – 47%. Note, however, that this is a GROSS profit figure – which means that it is only revenue minus material cost of goods and does not include an allowance for overhead costs. 

How do you price jewelry profitably?

To price your jewelry for healthy profits calculate your total – double those costs – then add your packaging and labor costs. Your final prices should be within your acceptable marketplace price range for similar items from competing jewelry designers. 

What should I charge for custom work and jewelry repairs?

Charge triple your bench jewelers’ hourly wage for repair work recommend expert jewelry shop owners. Start with the jeweler’s hourly wage, let’s say $20, and mark it up (just as you do for merchandise sales) triple the $20 hourly to $60 fee for custom work and repairs. 

The Gem industry experts at Polygon recommend this formula because a) all work takes longer than planned; b) downtime needs to be added in (looking for supplies, etc) and c) free repairs need to be absorbed into your pricing calculations.   

The post Costs to Start Jewelry Business: Store, Online & Handmade appeared first on Best 4 Businesses – Entrepreneur Resources.

2020-12-25