What makes up the landed cost
| Cost component | Examples |
|---|---|
| Material | Base metal, stones, chains, clasps; for precious metals, dependent on the daily market price |
| Manufacturing | Casting, stamping, assembly, polishing, stone setting |
| Finishing | Gold plating, rhodium plating, PVD, engraving |
| Development | Design, samples, tooling, allocated across the planned quantity |
| Packaging | Jewelry boxes, cards, labels, outer cartons |
| Testing and documentation | Lab testing, quality control, labeling |
| Logistics | Transport, insurance, and customs duties for imports from non-EU countries |
From landed cost to retail price
Retailers often calculate with a markup factor: it describes the ratio of the net retail price to the net purchase price and has to cover the retail margin, floor space, staff, markdowns and marketing. A simplified example:
- Net purchase price: €10.00
- Markup factor: 2.5
- Net retail price: €25.00
- Retail price including 19% German VAT: €29.75
Which factor is realistic depends on the sales channel. Online retailers, chain stores, specialist retail and promotional spaces in grocery retail calculate very differently.
Plan backward instead of calculating forward
Instead of designing first and then determining the price, good collections start with the question: Which retail price suits the target group and the channel? This yields the target purchase price, and design, material, finishing and packaging are aligned with it. A price ladder with entry-level, core and premium items helps structure the assortment.
What lowers the unit price
- Adapting existing models instead of developing new ones
- Keeping components and clasps the same across several models
- Bundling variants to make better use of minimum quantities
- Standardizing packaging across several items
How we handle this at Aviano
Based on your brief with target price points, we agree on the terms per model and possible quantity tiers before approval. Where the target price cannot be achieved, we show you alternatives in material, finishing or execution.
Frequently asked questions
Why do prices for silver jewelry fluctuate?
Because the price of silver fluctuates on the commodity markets. With a high material share, this directly affects the landed cost. For longer-term assortments, price adjustment rules are therefore often agreed.
Are sample costs included in the unit price?
This is agreed on a project basis. Development and sample costs can be invoiced separately or allocated across the production quantity.
Related terms
Planning your own jewelry collection? As a jewelry manufacturer for your brand, Aviano supports you from the first idea to delivery.