We recently asked members of the JCK Retail Panel about their margins on various products.
Retail Markups Based on Various Price Ranges
| Price range | Markup |
|
Note: Responses are median figures. Source: www.entrepreneur.com |
|
| &$999 | 2.5 |
| $1,000-$2,000 | 2.2 |
| $2,001-$5,000 | 2.0 |
| $5,001-$10,000 | 1.75 |
| $10,001-$20,000 | 1.5 |
| $20,000> | 1.3 |
What’s the difference between margins and markup?
“The difference is that gross profit margin is figured as a percentage of the selling price, while markup is figured as a percentage of the seller’s cost.”
(Selling Price — Cost to Produce)/Cost to Produce = Markup Percentage
Gross Profit/Sales = Gross Profit Margin
Source: www.entrepreneur.com
Profit Margins for Various Jewelry Categories
| Category | Profit Margin |
|
Note: Responses are median figures. Source: February 2004 JCK Monthly Retail Panel with 26.6% response rate: 178 responses were received out of 670 sent. The number of fine jewelers in the United States is 25,000 according to the Jewelers Board of Trade. |
|
| Karat gold | 100% |
| Pearls and pearl jewelry | 100% |
| Colored stones and colored-stone jewelry | 100% |
| Platinum | 100% |
| Watches | 100% |
| Diamonds and diamond jewelry | 70% |
| Sterling silver | 150% |
| Steel, titanium, other | 120% |