April 4, 2011

Silver Prices are Soaring Again

Filed under: Business — Tags: , , @ 11:17 am

Rising Silver Prices

As many of you are aware, the cost of silver in the market has continued to soar. It is currently 35% higher than it was when we last increased our prices in January. We have postponed our price increase in the hope that the market would calm but at this point we have to accept the new, higher prices. Our new prices will go into effect on Thursday, April 7th at 5pm. There is no flat across the board percent increase for this price adjustment. In anticipation of our new catalog, which will ship in a few weeks, we evaluated each style one by one to determine the lowest possible price we could set and still remain viable.

All orders placed before April 7th will be processed at the lower prices. However, effective immediately, all backorders and special orders will be at the new prices. Existing backorders will remain at lower prices.

Please note that orders will be processed and pulled as we normally do: orders with expedited shipping (UPS Overnight, 2-Day, and 3-Day) are pulled before UPS Ground and Priority Mail orders. UPS Ground and Priority Mail orders are processed in the order received. This is important to keep in mind because we may run out of stock on some items and backorders will be at the higher price.

We know what a toll these constant price increases are having on everyone’s ability to market affordable jewelry. I think we need to focus on marketing silver as a precious metal that is still much less expensive than gold. It will take the public time to adjust to this new positioning. In the meantime, we are developing bronze versions of our designs that will be priced significantly below silver. We expect to begin offering bronze styles by July.

Thank you for your patience and understanding. We appreciate your business!

  • Monica S

    It’s too bad silver prices are increasing so fast.
    Are your prices going to increase 35%?

    Best regards

  • michaeline

    I would love it if you could post a blog on how we should be pricing our finished products. The costs of creating is not looking like a good investment anymore. No amount of trying to convince the customers that they are “heirlooms” or as “precious as gold” is going to work. Marketing doesn’t fool everyone. This increase is making me really worried. The suppliers are doing fine, for there is the increase of everyone just wanting to make their own jewelry to avoid paying a designer, who does all the investing, and all the work, and just isn’t worth it to the average show shopper. I’m glad to hear of the bronze line. Please carry all the earring findings in it. My cheaper brass items outsell the silver even though I don’t think its as nice. I want the great nina designs stuff to sell, I know its a better product, but I’m wondering if anyone else cares what the cost is to me?

  • Hello Monica, The price increase for each item depends on how much silver and how much labor goes into each piece, but the quick answer to your question is that prices will increase between 10% – 30%. In general our Thai styles will increase the most because they are cast styles that are pretty heavy, versus our Bali styles that have less silver and more labor in them since they are hand forged and finished.

    Hello Michaeline, These are frustrating times for everyone in the jewelry business from suppliers to designers. The volatility of the metals market makes business planning very difficult, especially pricing. The quick answer to your question is: at minimum your prices should cover your materials cost, your labor, and your overhead. Nina wrote a great blog about pricing called Jewelry Pricing Tips. I would also suggest looking at marketing more as identifying your target market and how you’re going to reach that market with your campaign, rather than as fooling anyone. Please see the blog we wrote about Jewlery Marketing. I’d also like to point out that our price increases, while necessary to stay in business, has cost us plenty, in the form of slower sales. Our business has slowed and we’re just as worried as anyone. Which is why we’re looking into creating a bronze line and a silver plated bronze line. Here are a few more informative blog posts that may help you out: The Art of Jewelry Business and Design, Silver Jewelry Investment, and Recession Jewelry Marketing. We definitely sympathize with your concerns, and ask you to keep working, keeping designing irresistible jewelry that women will love to buy and wear. Remember women have always and will always adorn themselves with jewelry.

  • Silver pricing is soooo crazy! Is it ever going to go down? It’s hard for us to pass along price increases to our customers, just like I’m sure it’s hard for you at Nina Designs. I have also looked in to lower priced metals, but it sort of takes away the “keepsake” feeling of our jewelry and how your designs work for our vision. Your silver and gold designs are so lovely, different and really capture the “emotion” of the pieces. I think if you did a bronze line, it should be completely different from your current line. You don’t want to “water down” or lessen the value of what you are doing in silver. Your work really stands above other silver wholesalers, in quality and creativity, which counts for a lot even in times of crazy pricing. Hopefully we’ll all get through it. Keep up the good work!

  • Hi Jennifer – Couldn’t agree with you more. Silver is in hyper-inflation mode making us all feel like we’re in Crazytown. Everyone is scrambling just to figure out how to stay afloat. We understand your concern with not wanting to dilute our brand. That is precisely why we never ventured into bronze before now. But at this juncture it’s do it or shrink the company. We feel like introducing a high end bronze line (including silver-plated and gold-plated bronze) might be our only way to grow the company at present. I’d also like to re-assure you that our bronze samples that just arrived last week look amazing. I had reservations similar to yours, but once I saw the bronze they all disappeared.

    Our existing designs look awesome in the bronze, and to have developed new designs and created new molds, etc, would have set back the process at least 6 to 8 months, and we just can’t afford that. Customers wanted a new, more affordable line yesterday.

    While things feel crazy, it is also a pretty exciting time, and while it remains to be seen how the bronze line will be received, we are confident in the beauty of our designs and the critical thinking we put behind all these decisions. Thanks for your input (keep them coming), and as always, thanks for your continued support.

  • Anita

    Wondering what the current price of silver is?

  • Hi Anita –

    Here’s the website we check daily: Kitco. They show daily silver prices, and price changes over time.