Keep receipts. This will make it easier to keep track of costs. You can use them when calculating tax deductions. If you do not keep meticulous track of costs, you should round up when estimating costs. You don’t want to short yourself. You should be purchasing supplies at wholesale prices (i. e. bulk prices). If you purchase them at retail price these calculations will be off, and it is probable that you will have trouble turning a profit. [1] X Research source

If, for example, you have priced your labor at $20 per hour and worked for 30 minutes on the design, you would multiple 20 X . 5 = $10 or divide in half. When deciding how much to pay yourself hourly, consider your experience. How long have you been designing jewelry? If you have a long track record, vast expertise, and a portfolio of unique designs, you may find that you can charge more. You may also have particular advantages, including contacts and unique designs, that allow you to charge more.

For example, if the item cost you $10 in supplies and $1 in packaging, multiply 11 X . 10=1. 1+11=12. 1. Add to your material costs (12.

  1. the price of labor. If you spent one hour and thirty minutes at a rate of $25 per hour that would be 25 X 1. 5= 37. 5. Add labor plus materials 12. 1 + 37. 5 = 39. 6. Multiply by your profit margin 39. 6 X . 2= 7. 92+39. 6=$47. 52. Round up to $48 Whole prices are lower to account for all of the money you save selling items in bulk. Selling in bulk means that you need to spend less time interacting with customers and less money shipping items or setting up stands. When you want to start selling at wholesale prices is up to you, but usually a purchase of anywhere from 6 to 12 items will justify whole sale prices. [3] X Research source Overhead costs are how you factor in long term costs for your operation. This might include the price of a digital camera to take pictures, the cost of maintaining a website, or the price of space to make your jewelry. The best way to account for this to multiple your material costs by 10%. [4] X Research source

Have people offered to buy any of your jewelry designs? This is a good indication of the marketability of your designs.

Assess your materials. If you aren’t purchasing in bulk and getting wholesale prices, the materials will be too expensive for you to turn a profit. It can be hard to sell labor intensive items that require a lot of time, because consumers do not necessarily understand how much time is required to make them and are not willing to pay commensurate prices. Sometimes adapting these labor intensive products into smaller designs is a good way to reduce the amount of time you put into them and begin selling them at rates the market will bear.