Pricing Custom Jobs

Repair will always price the custom jobs for Sales. They will do this by obtaining all of the cost, i.e.: melee, labor, gold; and price accordingly. When pricing we have to make a minimum of 43% profit. This is a minimum and is not normal. A more average percentage would be 50% to 75%. Custom work takes more time and effort than selling something out of the case; therefore the % should be higher than normal.

The Repair Manager should give out his prices as an “estimate” and everyone should know that it may change in the end in order to cover additional expenses and to get the correct amount of profit.

The sales staff should be aware that on the onset of the sale, Repair is just giving them an estimate. All costs will not be known until the work is completed. The Repair Manager may agree on the onset to stick to a price, but that is different than an “estimate.” (If you have a center stone in the custom piece, this would be priced as normal by Inventory.)

Sales should be aware to not just bypass Repair and go straight to the Goldsmith for pricing. Repair sets the price and is ultimately the one responsible to see that the job is done per the customer’s requests. All custom work goes through them and they will get in communication with the customer themselves to insure everything that they need and want is duplicated correctly.

On occasion whoever is pricing custom work, should consult with the Treasury to insure the current pricing structure is fair or that we are even charging enough.