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.



Return to top of Can Bead Jewelry Making Kits and Patterns be Profitable?
Return to top of Market Bead Jewelry Kits and and Designing Skills
Return to Beading Design Jewelry home page.

New! Comments

Have your say about what you just read! Leave me a comment in the box below.

site search by freefind

Bead Manager Pro
will save you time and money.
With fully automated inventory and pricing of your jewelry pieces you will always know whats in stock
and what to charge!

Bead Manager Pro Jewelry Software


Discover How You Can Start
Making Money From Your Own
Home Based Jewelry Business



Recommended Articles:

Selling & Marketing Jewelry Discussion Forum

Can Bead Jewelry Making Kits and Patterns be Profitable?

Designing Jewelry Making Kits and Beading Patterns

Packaging Your Beading Kit and Bead Jewelry Pattern

Sell Jewelry Making Kits and Bead Art Patterns

Jewelry Making Parties

Magazine Submissions for Beading Projects and Jewelry Designs



I Love SBI!


Recommended e-Books:

Wire Tips, Tricks &
Techniques to Make Your
Designs Come to Life


Discover the secrets of contemporary wire wrapping

    The Complete Bead Guide.
    The Complete Bead Guide Answers All Your Questions About Beads And Is The Ideal Ebook For Beginners & Experienced Bead Lovers!

How to Make
Personalized Jewelry for
Fun and Profit!


Learn How to Make
Fork Bracelets


Quick and easy
copyright protection.


Make Money Doing
Something You Love!


    The Ultimate Bead Lover's Guide.
    A Comprehensive Guide To Beading, Covering Techniques And Styles Of Beading With Loads Of Clear Illustrations. It covers everything you need to know to start getting addicted to beading. Also includes book on selling your jewelry.


    Beading for Beginners
    A Visual Guide To Beading Techniques. A New Artistic Beading eBook that Teaches You the Quick and Easy Beading Steps You Need to take You from Beading Basics to Beading Like a Pro!

The Jewelry Party Business Guide



Do you have questions about
how to sell your jewelry?
Find the answers here!



http://www.marketingjewelry.com/101-jewelry-selling-techniques.htm


Click here to learn more about Jewelry Selling Insights



FREE e-Books:

Site Build It!
Thinking of building your own website? Or want to improve
your online presence with the website you have now?
Turn Your Knowledge
Into Revenue!

Checkout these FREE ebooks.



Site Build It!

Visitors Since Nov 22, 2011
free counters