Setting your profit margin as a goldsmith
What margin should you charge? B2B vs B2C, market benchmarks by region, and the pricing psychology behind why higher prices sometimes sell better.
Why margin matters more than markup
Margin = profit ÷ selling price Markup = profit ÷ cost price
These two are commonly confused. A 50% markup on €100 cost gives a €150 selling price — but that's only a 33% margin (50 ÷ 150). Professional pricing always uses margin on the selling price, which is also how tax authorities and accountants think about your business.
B2B vs B2C margin benchmarks
B2B (selling to retailers or dealers): typical 20 – 40% margin. Volume and relationship matter more than per-piece profit.
B2C (selling direct to consumers): typical 50 – 120% margin. This absorbs your overhead, branding, packaging, and after-sales service.
Market benchmarks by region
| Region | Typical retail margin |
|---|---|
| EU / UK | 50 – 80% |
| Gulf (UAE / Saudi) | 30 – 60% |
| US | 50 – 100% |
| Cyprus / Greece | 40 – 70% |
The danger of underpricing
New jewellers undercharge because they undervalue their own time and ignore overhead. The result is the classic "busy but broke" trap: full order book, empty bank account.
Pricing psychology
- Round numbers (€1,000) feel premium; precise numbers (€985) feel calculated.
- In luxury contexts, €985 often outsells €900 — because €985 reads as "the real price" while €900 reads as a discount.
- Always anchor against a higher "premium retail" price so the actual quote feels reasonable.
When to offer discounts
- Volume discounts for B2B orders above a threshold
- Loyalty discounts for repeat clients (5 – 10% max)
- Never discount more than half your margin — you're working for free past that point
Try this in the Manufacturing Calculator
Set your default margin once. Goldify applies it to every quote and shows the resulting price.