Custom jewellery should feel like a partnership you deserve clarity about what you’re paying for, how decisions change price, and the protections that come with buying from a reputable maker. Below are two practical, honesty-first guides you can use on your website to educate customers and reduce sticker shock.
Understanding Markups Metals and GST Jewellery Pricing Made Clear
What makes up a jewellery price
• Raw materials — metal and gemstone cost based on weight, purity, and market value.
• Craftsmanship — bench time for design, fabrication, stone setting, finishing, and quality control.
• Overheads — rent, tools, staff wages, photography, website, insurance and warranties.
• Design and development — one-off custom design fees, CAD, prototypes or wax models.
• Profit margin — the business needs to remain viable; markup accounts for risk, guarantee and future service.
• Taxes and fees — GST and compliance costs are added where applicable.
How markups are calculated
• Common approaches
• Cost-plus: add a set percentage to total cost (materials + labour + overhead).
• Keystone: roughly double the wholesale material cost for retail, adjusted for craft intensity.
• Value-based: price set according to perceived value, brand positioning and exclusivity.
• A simple pricing formula you can show customers
• Price = Material cost + Labour cost + Overhead allocation + Margin + GST.
• Showing a simplified breakdown builds trust: e.g., metal and stone 55%, labour 25%, overhead 10%, margin 10%, then GST.
Metals explained simply
• 9ct, 14ct, 18ct gold — higher carat = more pure gold, warmer colour, greater value and softer metal. 18ct is richer and costs more; 9ct is harder and more budget-friendly.
• Platinum — denser, hypoallergenic, excellent for secure settings; typically more expensive due to weight and rarity.
• Sterling silver — affordable, lower resale value, best for casual or fashion pieces.
• Alloys and colours — rose, yellow, and white gold are made by mixing pure gold with different metals; rhodium plating can affect finish and future maintenance.
Stones and sourcing
• Natural versus lab-grown — lab-grown diamonds can be less expensive by size and clarity; natural stones carry premium for rarity and traditional value.
• Emeralds, sapphires, rubies — each has grading variables (colour, clarity, cut, carat) that dramatically affect price.
• Provenance and ethics — ethically sourced stones or fair-trade metals may add cost; transparency about origin is increasingly important to buyers.
GST and taxes (Australia context)
• GST rate — standard Australian GST is 10% and is applied to the final retail price for taxable supplies.
• How GST appears — many makers include GST in the advertised price for clarity; show the tax component on invoices and quotes.
• Business obligations — registered sellers must remit GST and provide tax invoices on request.
Why transparency matters for customers
• Customers who understand the breakdown are less likely to be surprised by price and more likely to value repairs, insurance and long-term care.
• Sharing clear quotes, a materials certificate, and a written scope of work builds confidence and reduces disputes.
What to Ask Before Buying Custom Jewellery
Pre-purchase checklist customers should use
• Who will make my piece — ask about the maker’s qualifications, bench time, and whether work is done in-house or subcontracted.
• Can I see previous work — request a portfolio of similar custom pieces and client testimonials.
• What is included in the quote — materials, labour, taxes, design revisions, shipping, and finishing.
• Deposit and payment terms — how much is required up front, and the schedule for final payment.
• Timeline and milestones — clear dates for design approval, production start, and delivery.
• Revisions policy — how many design changes are allowed and whether extra revisions cost more.
• Warranty and servicing — what guarantee exists for workmanship, and what routine servicing or resizing is included or available.
• Resizing and future modifications — can the piece be resized later and what will that cost.
• Hallmarks and documentation — will the piece be hallmarked, and will you receive receipts, metal certificates and gemstone reports where applicable.
• Insurance and valuation — can they provide a written valuation for insurance purposes and/or recommend an appraiser.
Questions specific to gemstones and settings
• Stone specifics — origin, treatments, certification (e.g., GIA report), whether the stone is natural or lab-grown.
• Setting safety — explanation of the chosen setting (tension, bezel, prong) and how that affects wearability and maintenance.
• Alternatives — ask about different stones or metal choices to meet budget or durability needs.
Red flags to watch for
• Vague timelines — no clear delivery dates or indefinite production windows.
• No written quote — only verbal agreements increase risk of misunderstanding.
• Reluctance to show previous work — lack of portfolio or references.
• Unclear warranty — no explanation of what is covered and for how long.
• Pressure to pay full upfront — reasonable deposits are normal; full payment before any work is rare for custom pieces.
Practical advice for the custom process
• Request a visual proof — CAD renderings or wax models help avoid surprises.
• Agree milestones — sign off at design approval, after casting, and before final polishing.
• Keep records — keep all messages, invoices and photos of the agreed design.
• Plan for maintenance — discuss cleaning, rhodium replating, and prong checks as part of ownership.
Conclusion
Transparency turns a purchase into a confident decision. When a jeweller breaks down material costs, labour, GST and guarantees, clients feel informed and respected. At Custom Jewellery Designs Hillarys we provide clear quotes, detailed timelines, and honest guidance so your custom piece becomes a treasured story not a budgeting mystery.
