Why is Jewelry made to order more expensive?
A great question! The answer lies in the manufacturing and marketing. Let’s look at the type of jewelry in the shopping malls, stuff made for the mass market. These items are generally cheap but why?
Well, they are made for a specific market and to a price! Let’s say jewelry shops in the malls decide that an emerald ring in gold can be sold for $200.
They contact the wholesalers and ask if it can be supplied. Firstly, they know that a real emerald might not even be able to be bought for $200 so they decide to use created emeralds. Next, they know that they must use the cheapest yellow gold for their market 10K.
They then make the design. This is done by a designer who works with pen and paper and computers. This is often not some person who just thinks they have great ideas. This is a professional designer most likely with many years experience and perhaps a university degree in design. When the designer comes up with a design which is suitable for the expected clientele then it goes to manufacturing.
However, when the ring is made it just isn’t right so it’s back to design. After a redesign it gets manufactured again.
When it comes back from manufacturer it still isn’t right as the weight is too much and that would make the cost of manufacturer over budget.
You get the picture. It goes back and forth until all aspects are just right. Sometimes this may take as many as fifteen times before it is right. So it is a long process and that’s a huge amount of money for all that work.
What they have now is a design with a tiny created emerald to be made in a thin ring with the least amount of the cheapest gold possible – Don’t get me wrong, it is still going to be good quality but every component is minimum - otherwise it is not possible to make it and sell it for $200. These days you’ll find the back of the ring under the stone is hollowed out and this is solely to reduce the weight as gold is the big cost. A lot of people don’t like that but they like the look of the item and the cost.
Next, it is off to the cheapest manufacturing spot on the planet. These days that is probably China. The rings are made, not one at a time, but in batches of thousands at a time.
Now imagine that you walk into a manufacturing jeweler and tell him you want an emerald ring made. Here is the conversation:
You: “My name is Trudy and my grandmother always said that emeralds are the gemstones for me and so I want an emerald ring made.”
Jeweler: “That’s great Trudy! Do you have a design in mind?”
You: “Not really, but I like thick rings not those skinny bands that you see all the time. And I would like 18K white gold.” (This is the most expensive.)
Jeweler: Do you have the emerald yourself?
You: “No, I thought you could supply that.”
Jeweler: “Yes I can and the size and quality of the stone will play a big part. Do you have a budget in mind?
You: “Not really but I see them in the shops for $200 so around that figure somewhere…”
The jeweler is now thinking…well, that would nearly cover the cost price for the gold…and he is starting to lose interest big time!
Author: Gary Hocking
A great question! The answer lies in the manufacturing and marketing. Let’s look at the type of jewelry in the shopping malls, stuff made for the mass market. These items are generally cheap but why?
Well, they are made for a specific market and to a price! Let’s say jewelry shops in the malls decide that an emerald ring in gold can be sold for $200.
They contact the wholesalers and ask if it can be supplied. Firstly, they know that a real emerald might not even be able to be bought for $200 so they decide to use created emeralds. Next, they know that they must use the cheapest yellow gold for their market 10K.
They then make the design. This is done by a designer who works with pen and paper and computers. This is often not some person who just thinks they have great ideas. This is a professional designer most likely with many years experience and perhaps a university degree in design. When the designer comes up with a design which is suitable for the expected clientele then it goes to manufacturing.
However, when the ring is made it just isn’t right so it’s back to design. After a redesign it gets manufactured again.
When it comes back from manufacturer it still isn’t right as the weight is too much and that would make the cost of manufacturer over budget.
You get the picture. It goes back and forth until all aspects are just right. Sometimes this may take as many as fifteen times before it is right. So it is a long process and that’s a huge amount of money for all that work.
What they have now is a design with a tiny created emerald to be made in a thin ring with the least amount of the cheapest gold possible – Don’t get me wrong, it is still going to be good quality but every component is minimum - otherwise it is not possible to make it and sell it for $200. These days you’ll find the back of the ring under the stone is hollowed out and this is solely to reduce the weight as gold is the big cost. A lot of people don’t like that but they like the look of the item and the cost.
Next, it is off to the cheapest manufacturing spot on the planet. These days that is probably China. The rings are made, not one at a time, but in batches of thousands at a time.
Now imagine that you walk into a manufacturing jeweler and tell him you want an emerald ring made. Here is the conversation:
You: “My name is Trudy and my grandmother always said that emeralds are the gemstones for me and so I want an emerald ring made.”
Jeweler: “That’s great Trudy! Do you have a design in mind?”
You: “Not really, but I like thick rings not those skinny bands that you see all the time. And I would like 18K white gold.” (This is the most expensive.)
Jeweler: Do you have the emerald yourself?
You: “No, I thought you could supply that.”
Jeweler: “Yes I can and the size and quality of the stone will play a big part. Do you have a budget in mind?
You: “Not really but I see them in the shops for $200 so around that figure somewhere…”
The jeweler is now thinking…well, that would nearly cover the cost price for the gold…and he is starting to lose interest big time!
Author: Gary Hocking
