How to price custom jewellery, with a worked example
A custom ring or pendant has several costs that move independently: the metal changes price daily, stones vary, and design and bench time are yours to value. This guide breaks a quote into seven parts so nothing is forgotten, then walks through one piece in rand.
The seven parts of a quote
- Metal. Weight in grams multiplied by the price per gram of the alloy you are using (9ct, 18ct, platinum and so on). Metal prices move every day, so a quote should state how long it is valid. Many workshops add an allowance for metal lost in casting and finishing; if you do, show it as its own line so you can see what it costs.
- Stones. The cost of each stone, times the number you are using. Note whether you are buying them or the client is supplying them.
- Setting. Labour to set each stone. It depends on the stone, the setting style (claw, bezel, channel, flush, micro pave) and the size.
- Design. CAD modelling and rendering time. Charge for it even when the client does not order the piece, or at least decide deliberately not to.
- Making. Casting, assembly and bench time.
- Finishing. Polishing, plating (for example rhodium) and any engraving.
- Markup and VAT. Add a consistent markup percentage on the total cost, then VAT if you are VAT-registered (15% at the time of writing).
A worked example
An 18ct yellow gold ring with one centre stone. These are round numbers chosen to show the arithmetic, not market prices.
| Line | Working | Amount |
|---|---|---|
| Metal | 6 g of 18ct at R1,700 a gram | R10,200.00 |
| Centre stone | One stone | R6,000.00 |
| Setting | Claw setting, one stone | R600.00 |
| Design (CAD) | Model and render | R1,500.00 |
| Making | Casting and assembly | R2,000.00 |
| Finishing | Polish | R400.00 |
| Total cost | R20,700.00 | |
| Markup | 30% of R20,700 | R6,210.00 |
| Price before VAT | R26,910.00 | |
| VAT | 15% of R26,910 | R4,036.50 |
| Price to the client | R30,946.50 |
Change the gold price to R1,800 a gram and the metal line becomes R10,800, which moves the cost, the markup, the VAT and the final price. That is why a quote needs a validity date.
Mistakes that cost money
- Using yesterday's gold price. On a heavy piece a small move in the price is a real amount of money.
- Leaving out design time. It is easy to forget because it does not feel like a material cost.
- Applying markup to some lines and not others. Pick one rule and use it every time, or two people will quote the same piece differently.
- Calculating VAT on the cost instead of the selling price. VAT goes on what the client pays for, after your markup.
- No validity date. A quote with no expiry is an open offer at a price that may no longer make sense.
Make it repeatable
The method is simple; the trouble is doing it the same way every time, with today's metal price, under pressure, with a client waiting. Write your rates down once (setting by stone and style, design, making, finishing), keep one markup rule, and let a tool apply them in the same order each time. That is what ELIPHASx does.
Use the free quote builder with today's metal price. No account needed.
Build a quote free