Pricing Gold Jewelry, An Insider’s POV

Keystone Pricing

Keystone pricing is taking the wholesale cost of a piece of jewelry and marking it up 100%.

Information site, About.Com, takes this a step further. They advise entrepreneurs:

“A simple formula when pricing for wholesale is to add up your costs (this includes labor, overhead, and supplies) and multiply by 2. For retail, do the same, but multiply by 2.5 to 3.”

In other words, they advise taking not only the cost of the jewelry into account, but also other variable business expenses to determine the net cost of jewelry and then to multiply by 2 to obtain a wholesale cost or 2.5  to 3 times to obtain a retail price.

Keystone refers to doubling the cost of jewelry, whereas triple keystone is tripling the cost of jewelry to determine the retail value (A staggering 300% Mark Up)!

This is not uncommon in the jewelry industry and some jewelers mark up jewelry even higher.

Apples of Gold Pricing Methodology

Where Apples of Gold Jewelry differs significantly from standard jewelry industry pricing is that at best we mark up our jewelry an average of 30% from the cost of the actual merchandise. On select designer pieces, we may mark up select items 40% – 50% (you can call this half-keystone, if you will).

Compare this to 100% to 300% markup of the traditional jeweler, and you will see why customers often call us to ask us how we are able to sell jewelry for so low.

This is where we stand apart from most traditional jewelers and even online jewelers. When comparing Apples of Gold to traditional jewelers we are usually 50% below retail and when comparing to online stores, Apples of Gold Jewelry is an average of 30% lower than most online jewelry competitors.

This leads us to our value-based pricing methodology.

Value Based Pricing

Apples of Gold strives to determine its jewelry prices based on the value that a piece of jewelry creates for our customers. We believe that this is more profitable for us in the long term–as we serve our customers and provide an affordable, quality product.

By selling with greater volume nationally across all U.S. States and internationally across Europe, Asia, Canada, and other parts of the globe, and by limiting overhead, and very significantly not having the huge burden of stocking every jewelry item in-house, we are able to sell at vastly lower prices than most jewelers, while providing a fair valuation of our gold jewelry.

Additionally, we combine our value-based pricing with a “fair pricing” method. “Sometimes it simply doesn’t matter what the value of the product is, even if you don’t have any direct competition. There is simply a limit to what consumers perceive as ‘fair’. If it’s obvious that your product only cost $20 to manufacture, even if it delivered $10,000 in value, you’d have a hard time charging two or three thousand dollars for it — people would just feel like they were being gouged” (entrepreneurs.about.com).

The Bottom Line

Most jewelers have to charge anywhere from 100-300% to maintain a profitable business. With large overhead, shifting gold and metals prices, employee costs, and most costly–expensive inventory–they cannot survive on smaller than keystone margins.

The difference with online jewelers–and especially those who have deep and mutually beneficial relationships with manufacturers and wholesalers, the markup on jewelry will be significantly less, usually not breaching 30%-50%.

At Apples of Gold, we recently were in talks with one of our major suppliers to get lower prices to obtain a 40-50% margin on products that they supply us, and the idea was quickly dismissed–because both we and our suppliers understood that to be competitive in the online environment, such a mark-up is difficult to achieve. We finally settled on a 29.5% margin on items that we purchase from them. So an item that cost us $300, we are selling for about $385.00. A traditional jeweler would normally sell an item obtained at wholesale for $300 for $600 (keystone), or possibly $900 (triple keystone).

That is why Apples of Gold rightly advertises our products are approx. 50% below standard retail (and that is a conservative estimate).

Learn more about Apples of Gold Jewelry and our value-based pricing methodology.

Featured Products in this Post

Men’s 14K Gold Angular Link Bracelet

Sea-Foam Green Amethyst and Diamond Ring

Art Deco 1/4 Carat Diamond Ring

Caedmon Celtic Wedding Band

Featured on ApplesofGold.Com.

Jewelry Hot List

Last was the year of new jewelry for Apples of Gold, with the addition of over 600 new, unique jewelry pieces. Below are some of the “hot seller” highlights from our newest fine jewelry pieces:

Black Diamond Rings became a hit for Apples of Gold with our Art Deco Black Diamond Ring and so we added several new designer pieces to our popular black diamond jewelry collection, including a Benchmark Black and White Diamond Eternity Band, 1 Carat Black and White Diamond Cross Pendant, as well as our all black diamond solid gold cross pendant for men.

Of course, we love our blue diamond jewelry too!

By far, our best selling blue diamond ring was our 0.93 Carat Blue and White Diamond Swirl Ring. Our popular blue diamond jewelry pieces was expanded to include our best selling 0.93 Carat blue and white diamond swirl ring. We added many other blue diamond rings to our blue diamond jewelry collection as well that turned quite a few heads.

Wedding Bands have always been at the heart of our jewelry line and Paisley Wedding Bands have always been at the top of our list. Our Paisley Collection was expanded with a new deeply engraved paisley wedding band in 14k white gold, 14k yellow gold, and our most popular paisley release: the 14k rose gold paisley wedding band.

It was our goal to added many new unique personalized jewelry pieces to our collection, and we met our initial goals!   The most popular being our Personalized Gemstone Circle Pendant, the Engravable Boy Gemstone Pendant and Engravable Girl Gemstone Pendant, our Personalized Gemstone Baby Shoe Pendant, and Personalized Gemstone Heart Pendant.

We also introduced a new line of Personalized Disney Jewelry, and new gold name pendants.

Benchmark Wedding Bands - A high-end wedding ring brand which includes a Lifetime Warranty and Lifetime Re-Sizing Policy. We plan on adding many new Benchmark styles in 2009.

Official Disney Jewelry – featuring popular Disney characters such as Tinkerbell Jewelry, Mickey Mouse Jewelry, Winnie the Pooh Jewelry, and more! Our Personalized Disney Jewelry collection also proved very popular and all very affordable!

Read more about our Disney Jewelry line: Disney Jewelry for an Imaginative Holiday, A Man Named Walt, and our official Disney Jewelry Release.

We plan on adding more popular Disney characters in 2009.

Apples of Gold’s most popular cross, The Polished Solid Gold Cross Pendant also saw a new addition, including: 18K Gold Cross Pendant, an 18K White Gold Cross Pendant,  and a Men’s Platinum Cross Pendant.

This cross is fully solid gold and finished on both sides (not hollow), measuring approx. 1 1/4″ tall x 1″ across and 2.5mm thick. Although originally crafted for men, both men and women enjoy this beautiful, expression of Christian faith.

This amazing cross was followed by the release of our 18K Gold Onyx Cross Pendant.

What is better than your own writing or the handwriting of your beloved, engraved onto a wedding band? Apples of Gold Jewelry created the concept of engraving your own writing onto a gold band with our new Personalized Handwritten Wedding Bands in 14k gold yellow, 14k white gold, and 14k rose gold.

Simply scan your handwriting onto your computer and email it to us! We’ll do the rest!

Our unique Victorian-Style Three Stone Diamond Ring became a hot seller in 2008 and as platinum prices dropped, we decided it was the perfect time to offer a Victorian-Style 1 Carat Three Stone Diamond Ring in Platinum also. Also available as a three stone 1 carat diamond engagement ring in 14k white gold or a 1/2 Carat Platinum Three Stone Diamond Engagement Ring.

We look forward to 2009 as we expect to add more items than we did in 2008! We expect to double our production in 2009, with 500 new jewelry pieces being added in the 1st Quarter alone. Yes, we plan on keeping the Apples of Gold Jewelry elves very busy through 2009!

Finding Her the Perfect Engagement Ring

Finding the perfect engagement ring for your loved one can be a tricky process. If you do not know the exact style she wants, choosing the right ring is like taking a shot in the dark. Though some women prefer to come along for the ring search, many would rather be surprised with a gorgeous ring when she least expects it. To make matters even harder, most women want to be surprised but still want the ring to be exactly what they have always envisioned.

Avoid mental breakdown with our convenient guide to stealthily figuring out exactly what she wants. With a little bit of detective work and planning, you will be presenting her with an  engagement ring that makes all her dreams come true.

Do a Little Digging

First things first: a little bit of sleuthing is in order. In order to purchase the ring, you need to know her ring size. Secretly rummage through her jewelry box and find a ring that she wears frequently. To find out the size, you have a few options:

1. If she won’t notice that it is missing, the best option is to take it to a local jeweler and ask them what the size is.

2. If she will notice the ring’s absence, use a piece of string and lay it just inside the ring. Trace it around the inner edge and mark the spot where the string meets the beginning. Take the marked piece of string to a jeweler, who will be able to tell you the ring size.

3. This method is the quickest, but can also be the least accurate: place her ring on your pinky finger as far down as it will go, and remember the spot it stopped at. Remember it well, because you will have to tell a jeweler exactly where it fit on you in order for them to get the size!

One word of advice: don’t stress! If you still get it wrong, most engagement rings are resizeable! And reputable jewelers will offer a return or exchange policy.

Pick the Perfect Partner(s) in Crime

The next order of business is to find a partner in crime. To identify the best person (or people) for the job, ask your fiance-to-be which one of her friends’ or family members’ style she trusts and admires. Once you get the name, contact this person and let them in on your engagement plan. Ask their opinion on the style of wedding ring your girlfriend would like, and take copious notes. If possible, ask them to email you pictures of engagement rings online that match the right style.

Now, it’s time to go shopping. Once you have set your price range and know exactly what she wants, begin comparing prices and quality at different jewelers. You can even take your partner in crime with you for additional advice on the perfect engagement ring. Make sure to check out reputable jewelers online as well. They often have a larger inventory and better quality jewelry for less than store-based jewelers due to a low overhead and high volume of inventory. Finally, if you do buy online, make sure the jeweler is reputable – check out our article on Buying Jewelry Online. It’s a must read for safe and successful online shopping!

Jewelry Affiliate Program

Apples of Gold Jewelry has launched its official jewelry affiliate program with Google network (formerly Performics).

What is the Apples of Gold Affiliate Program?

The Affiliate Program is an excellent way to generate additional income and add value to your web site by linking to ours. We offer 2,500+ affordable jewelry products at an average of 50% below retail which your viewers will appreciate! Best of all, it’s Free to join and all you need to do is follow the easy step by step plan to getting started. You don’t need inventory, now you can create your own store without the headaches, hassles or time.

How Does It Work?

Apples of Gold will pay you attractive commissions on purchases generated from your site. Compare our merchandise to other sites, and you’ll see that the commission you could collect from a few items at Apples of Gold might take you quarters to accumulate through other affiliate programs. We handle all transactions, processing and customer service. We’ll even provide you with detailed online reports that track sales activity originating from your site through the Google Affiliate Network.

Excellent Creatives for your site!

Why Apples of Gold?

Apples of Gold is Online Jeweler since 1999 with 25 years of experience offering 2,500+ affordable jewelry products at an average of 50% below retail. We offer affiliate only coupons, 45 Day Return Policy, Free Shipping via FedEx and are members of the BBB with a “AA” rating. Our staple products include: wedding bands, engagement rings, gold bracelets, gold chains, gold necklaces, gemstone jewelry, gemstone rings and diamond rings. We also carry specialty items: colored diamond jewelry, blue diamonds, black diamonds, alternative gold types such as rose gold, handmade wedding bands, bangle bracelets, Christian jewelry and personalized jewelry. Our brand name pieces include Benchmark Rings, and we are expanding to other name brands in the upcoming year.

Why should I join the program?

Linking to The Apples of Gold offers your viewers a value-added service that helps fulfill their overall shopping needs. This is a key sales opportunity to strengthen the long-term impact of your web site, while elevating your status as a respected Internet resource. As our affiliate partner, you decide how to integrate The Apples of Gold text links & banner graphics with your site. No matter how you design your interface, you’ll earn commission on purchases generated from your site using our link campaign. The more you refer, the more you earn – it’s as simple as that. We provide all the logos, banners and text links you will need to to get started! Ultimately, it’s up to you! Our most successful affiliate’s merchandise the product directly on there site with a personal recommendation and when clicked upon comes directly to ApplesofGold.com for order fulfillment and commission.

The Apples of Gold Affiliate Program Program Details:

• Join for Free and earn a generous referral fee!
• 30 Day cookie – you get credit for up to 30 days!
• Average sale is $500 and get paid on a monthly basis!
• Enhance your site with Apples of Gold Jewelry Products from an industry leader!
• Easy cut & paste html library of banners & text links to help you increase sales!
• Check your earnings and traffic reports online anytime.
• We process the orders, ship the products, bill the customers.
• We handle all customer service!

To get started now, just follow these instructions:

• Complete the online application at Google Affiliate Network
• Upon approval, we will send you an email detailing all the information you need to get started

If you have any questions at all or need assistance, please feel free to
contact us!

Apples of Gold Jewelry Launches Its Official Blog

After eight years as a leading online jeweler, Apples of Gold Jewelry has launched its official weekly blog.

Covering major jewelry industry news and topics, Apples of Gold’s objective is to provide interactive and trustworthy content to its customers and jewelry enthusiasts.

Apples of Gold is expecting a powerhouse of qualified writers, including Yelena Jenkins, who has worked as Senior Editor for California luxury lifestyle magazine, Hills & Lagoons as well as Style Editor for StarStyle.com. She currently writes for eHow.com, Celebrations.com, Shoetube, and Elite Hawaii Weddings. Yelena will be covering the Jewelry Trends, News, & Tips category for Apples of Gold.

Learn more about our writers, which include professional fashion blogger, Tierra Wilson and freelance writer Sheryl Martinez.  Tierra Wilson’s work can also be seen on Gadget Spice, The Watchery, and Stylefeeder with an insightful and penetrating look at fashion and luxury products. Cheryl Martinez, business owner and freelance writer, will be giving us an in depth look at jewelry history.