a great resource if you haven't downloaded from Jewelry Making Daily already:
hope that helps!
Thanks for sharing our free jewelry business eBook, JSimonds! You're right, it's a great resoure for anyone who is interested in selling handmade jewelry or starting a home jewelry business. Here's that link again:
Yes you are saying right its not possible to sell jewelry at low cost. I agree with you.
I feel you, especially when your store is online-based. Some competition just drop prices to the point that you can't keep up. Unless you can magically find a way to get materials half their usual cost, it's quite impossible to drop prices without sacrificing quality.
Anyhow, you should price the materials based on how much they cost today. Give your potential customer a reason to pick you over the other, cheaper handcrafted jewelry store - like better quality.
I usually use a 1.5 to 2 multiplier to set my base price plus a bit more for my labor if the piece can command it. Jewelry's in great supply and the competition is tough; there are over 3.5 million pieces listed on Etsy alone.
Have something different, original and keep the workmanship quality up to help separate you from much of the competition.