Jewelry making businesses put creativity and an eye for design and craftsmanship to create and sell decorative items like bracelets, necklaces, rings, earrings, and other wearable accessories using various materials ranging from precious metals and gemstones to non-precious materials.
Jewelry making businesses operate in various sizes and settings, from home-based studios creating entirely handcrafted pieces to large manufacturing facilities.
Related: Checklist To Start A Business
How Do Jewelry Making Businesses Make Money?
Jewelry making businesses generate income primarily through the sale of finished jewelry pieces to consumers, retailers, or wholesalers. Additional revenue sources for jewelry manufacturers can include:
- Repair Services: Fixing broken jewelry, resizing rings, and replacing lost stones or components
- Educational Programs: Teaching jewelry making classes, workshops, or apprenticeship programs
- Material Sales: Selling jewelry-making supplies, stones, or precious metals to other craftspeople
- Appraisal Services: Providing professional valuation services for insurance or resale purposes
- Design Consultation: Offering design services for special occasions like weddings or anniversaries
Industry Statistics
Jewelry making businesses include manufacturers that produce jewelry items and silverware using precious or semiprecious metals and stones, as well as costume jewelry and lapidary work. This industry falls under NAICS code 339910 – Jewelry and Silverware Manufacturing. Here are some statistics about the industry.
Jewelry Making Industry Size & Growth: The jewelry-making industry generated $21.4 billion in revenue last year. Over the past five years, revenue has declined, with an average yearly decrease of 2.3%. Industry growth projections indicate an expansion of 4.6% annually over the next five years, driven by rising consumer spending power and increased demand for luxury goods (IBISWorld).
Jewelry Making Profit Margin: Jewelry making businesses typically achieve gross margins between 40% and 60% of revenue, while net profit margins average 10% to 15% after accounting for operating expenses, labor, and overhead costs
Startup Stories
Costs To Start a Jewelry Making Business
Starting a jewelry making business typically costs between $2,000 and $7,000 to get basic equipment and supplies needed to begin production. Here are some of the more expensive items:
Equipment and Tools: Basic jewelry making equipment includes pliers, cutters, files, soldering equipment, polishing tools, and measuring devices. A basic setup of hand tools and small equipment typically costs $1,000 to $3,000.
Initial Inventory: Starting materials like metals, stones, wire, findings, and basic supplies generally cost around $500, depending on the type of jewelry being produced and the chosen materials.
Workshop Space: Setting up a dedicated workspace requires proper lighting, ventilation, and a sturdy workbench with storage solutions. Basic workshop setup costs typically range from $300 to $800.
Display and Packaging: Professional presentation materials, including jewelry boxes, gift bags, display stands, and photography equipment for online sales, generally cost between $200 and $500.
These estimates are approximate, and actual costs will vary.