Can Bead Jewelry Making Kits and
Beading Patterns be Profitable?

Bead jewelry making kits and patterns can be profitable especially if your design or technique is very time consuming or laborious in producing the final product, such as in bead weaving. In pricing a jewelry piece the labor costs are usually the largest percentage of the costs in producing it.

In producing bead jewelry kits and beading patterns your only labor cost will be in putting them together. Unless of course you cut out the material pieces for the project in the kits, but you will save on finishing costs.

With the time saved on labor by producing jewelry kits, you can make up many kits in the time it would take you to make the finished product. Which, if you have an attractive design or an appealing project, could be much more profitable than selling the finished project itself.

For example, lets say that you have designed and produced a beaded bracelet pattern using a free form peyote stitch. It costs you $5 for materials, and takes you six hours to complete one. You charge $15 an hour for your labor in computing your costs.

Therefore you must sell your bracelet for $95 plus overhead and profit—and that's just your wholesale price. In that same six hours you can make up 20 kits for that same bracelet. The formula for calculating the labor cost for each kit would look something like this:

    6 hrs x $15 = $90
    $90 divide 20 (kits) = $4.50

The material costs for your bead bracelet kit would still be five dollars plus the cost of the paper for the instructions and/or patterns and the cost of your packaging, but your labor cost for each one are now only $4.50.

You are not making more money through labor, because you are still charging $15 an hour. But where you make your money through producing and selling bead jewelry making kits is in the profit part of your pricing calculations. As you know, the formula for pricing your work is:

    Materials + Labor + Overhead + Profit = Wholesale price

So if we worked out the formula for one finished bracelet and twenty kits, our calculations would look something like this:

One Finished Bracelet:

    Materials $ 5.00
    Labor (6 hrs) $90.00
    Overhead $ 2.00
    Sub-Total $97.00
    Profit (15%) $14.55
    Wholesale Price =$111.55

20 Finished Kits:

    Materials $100.00
    Instructions $ 20.00
    Packaging $ 30.00
    Labor (6 hrs) $ 90.00
    Overhead $ 5.00
    Sub-Total $245.00
    Profit (15%) $ 36.75
    Wholesale Price=$281.75 divide 20(kits) = $14.08 each

Depending on the cost of your bead jewelry kit, you could probably charge what the market will bear. In this example each kit is priced at $14.08 wholesale including the 15% profit.

Now if you know that similar beading kits are selling for $20 wholesale, you could boost your profit margin from 15% to 65% giving you a total profit for twenty kits of $159.25 instead of $36.75. Either percentage is still much higher than the $14.55 profit you would get for finishing one bracelet.

Now you can see why producing bead jewelry making kits can be much more profitable. Of course you have to have a kit that is not only appealing but also marketable.

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