Metal Casting Zone Info Blog

Posts Tagged ‘Price’

Have you seen similar silver jewelry sold at price difference of two to three times from different retailers? Have you ever wondered how retailers mark up the jewelry after they get them from the venders? Here we will show you the wholesale trading secrets of sterling silver jewelry.

Price per gram

The most important piece of information for determining the price of a piece of sterling silver jewelry is the price per gram of the silver. This is the fundamental raw material cost of a piece of sterling silver jewelry due to the fact that silver is considered a precious metal. For instance, the price for silver is $9.5 per ounce, the price per gram is determined by dividing the price per ounce by 31.5, which is 30 cents. Therefore, the cost for the raw material for a 5 gram wedding band ring is roughly $1.5. Some might wonder why people would pay $30 for a silver wedding ring when the silver only cost $1.5. The followings will explain the difference.

Labor cost

To turn raw material into finished goods, it involves a great deal of processing cost. The metal itself has to be melted, molded and cast, polished and assembled. Most of the times, silver jewelry is accented with various stones, the costs for setting the stones are also a major part of the total cost for jewelry, especially for jewelry that requires high level of craftsmanship.

Other materials

Also, the costs for any additional material are added to the jewelry. For instance, a pair silver pearl dangle earrings that has two cultural fresh water pearls with rhodium finish should cost double the price of the silver to make because of the cost of the pearl and rhodium. Note that rhodium is even more expensive than silver itself and it is high tarnish resistant.

Shipping cost

Many styles of jewelry are imported from other countries because of difference in availability of raw materials such as stones and also the specialties in making some particular styles. Hence the shipping cost of transporting is also part of the cost. Usually, for imported sterling silver jewelry, the shipping cost can amount to 10% of what it costs to make the jewelry themselves.

Custom Duties

For the same reasons, imported jewelry incurs duties at the custom. This is a cost that normal consumers are not aware of but it can also increase the price of sterling silver jewelry for 5% to 10%.

Price fluctuations

Some sterling silver jewelry trader, especially wholesaler would associate the price of the jewelry with the current silver price. Therefore, the price of a piece of sterling silver jewelry might be different from month to month, and even day to day in the case of wholesale.

Business Overhead

Just like any other business, the sales have to cover also the overhead of running the business. Normal overhead costs are employees’ salaries, rent, utilities and breakage.

Profit

Of course, the price you pay includes the profit for the sellers.

By knowing the above facts, you can make much more informed decisions when buying wholesale sterling silver jewelry and most importantly, avoid scams. There are occasions when people make fake silver jewelry and sell them at a very low price. If you know how to determine the cost of a piece of silver jewelry, you won’t buy into deals where they offer you a price that is lower than the normal cost of real sterling silver jewelry.

Container Exchanger (www.containerexchanger.com) is dedicated to the sale and resale of reusable packaging and containers. The firm resells folding bulk containers, metal storage bins, plastic industrial totes, plastic pallets, and used gaylord boxes nationwide. When a company is finished using a returnable packaging fleet, Container Exchanger represents the seller and finds a buyer for the used bulk packaging. Sellers enjoy a high sales price for a better return on investment. Buyers save significantly in comparison to new packaging prices.

Dave Madden, President of Container Exchanger recently discussed the efficacy of reusable metal containers, noting that, “Automotive molders, automotive components, durable goods manufacturers, metal stamping, metal casting… really absolutely any industrial company that must store or ship intermediate product all benefit from reusable metal containers.  In other words, you have sub-assemblies or large parts that are transported to an “internal” customer (a different part of the plant).”  Madden provided several examples such as the casted transmission housing gets put in a metal bin and is taken to machining and assembly line, or sub-assemblies that are transported to an external company en-masse.

There are many benefits of metal bins including durability and reusability; some are collapsible making return shipments more cost effective.  Some metal bins are very heavy-duty, so they can hold a lot of heavy product, like casted or machined metal parts.  This product can then be stacked and stored in a relatively small space.  Wire baskets are effective because they are affordable.  “A light-duty wire basket is pretty cheap for the internal storage volume and they are often used to hold cardboard for recycling or transporting and storing light stamped parts or molded parts,” suggested Madden.

Price savings of Used Reusable metal bins are significant; used metal bins are often 30% – 50% of the cost of new (70% off the new cost).  The only expendable bulk solution is a Gaylord box.  These boxes sell for $20 each for a good box and one has to buy a pallet.  A wire basket might run $80 used.  Gaylord boxes might last 4 uses or so, whereas the wire basket would last 200+ (both estimates and depend on usage).  The payback comes after only 13 uses.  And if the basket lasted only 200 uses, there would be a savings of 1500% compared to using a Gaylord box. 

Container Exchanger

www.containerexchanger.com

David Madden, President

pr@containerexchanger.com

404-551-5599

Container Exchanger (www.containerexchanger.com) is dedicated to the sale and resale of reusable packaging and containers. The firm resells folding bulk containers, metal storage bins, plastic industrial totes, plastic pallets, and used gaylord boxes nationwide. When a company is finished using a returnable packaging fleet, Container Exchanger represents the seller and finds a buyer for the used bulk packaging. Sellers enjoy a high sales price for a better return on investment. Buyers save significantly in comparison to new packaging prices.  Dave Madden, President of Container Exchanger recently discussed the efficacy of reusable metal containers, noting that, “Automotive molders, automotive components, durable goods manufacturers, metal stamping, metal casting… really absolutely any industrial company that must store or ship intermediate product all benefit from reusable metal containers.  In other words, you have sub-assemblies or large parts that are transported to an “internal” customer (a different part of the plant).” 

There are many benefits of metal bins including durability and reusability; some are collapsible making return shipments more cost effective.  Some metal bins are very heavy-duty, so they can hold a lot of heavy product, like casted or machined metal parts.  This product can then be stacked and stored in a relatively small space.  Wire baskets are effective because they are affordable.  A light-duty wire basket is pretty cheap for the internal storage volume and they are often used to hold cardboard for recycling or transporting and storing light stamped parts or molded parts. Madden provided several examples such as the casted transmission housing gets put in a metal bin and is taken to machining and assembly line, or sub-assemblies that are transported to an external company en-masse.

Price savings of Used Reusable metal bins are significant; used metal bins are often 30% – 50% of the cost of new (70% off the new cost).  The only expendable bulk solution is a Gaylord box.  These boxes sell for $20 each for a good box and one has to buy a pallet.  A wire basket might run $80 used.  Gaylord boxes might last 4 uses or so, whereas the wire basket would last 200+ (both estimates and depend on usage).  The payback comes after only 13 uses.  And if the basket lasted only 200 uses, there would be a savings of 1500% compared to using a Gaylord box. 

Container Exchanger

www.containerexchanger.com

David Madden, President

pr@containerexchanger.com

404-551-5599