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Value for money factor (VFMF)
 
 Value for money factor is an important evaluation aspect I use in my jewelry emporium site JewelGateway.com. It is the first out of three factors that determine the adequateness of the product for listing and I think it contains useful information for the jewelry enthusiast. Proper classification requires objective points of reference in order to compare two products and differentiate the better deal. These common points of reference sort the jewelry in certain quality brackets, creating possibility to compare similar products against their asking price.
The most objective point (not always the most important) is the "dead weight value" which is my term for the price of the materials involved in a piece, meaning: the value of the precious metal, in a bar form plus the value of the stones involved. This is the trade cost of the reusable materials and excludes any labor, setting, handling costs or any other cost added subsequently to these materials to form a finished product. This value depends on the current market price of these materials.
Labor value is the second reference point and it is expressing the value added from a craftsman to the materials to bring about a finished jewelry product. Labor value is determined by level of craftsmanship and number of hours required to accomplish given jewelry design. Because accomplishing identical items requires different time for different craftsman and because different craftsman charge different fee for their service per hour, I use my average estimation.
Factory cost price is the sum of the above two values, plus cost of the consumables used, plus cost of the metal lost in the manufacturing process. It is important basic cost on which a markup is applied to form the price on every different level of selling.
Artistic value is of aesthetic nature, but it ads greatly to the saleability and marketability of the jewelry piece. Usually preceding all fabrication processes, it is one of the most important values. It is the creative aspect of jewelry manifested. Designer's efforts (some more successful than other) lay behind every piece of jewelry, including the mass produced ones.
Artistic value does not have an objective cost, thus I use 1 to 10 point system in order to give it manageable numerical value. Each number from 1 to 10, have designated coefficient which multiplied to the factory cost price give me the basic value. Basic value is nothing more than estimated total value before profit.
When I divide the asking price of a piece of jewelry by its basic value I get the estimated index of added profit and the lower this number is the better the VFMF.
In the end I would like to mention that this formula is applicable only when evaluating and comparing similar products. When it comes to low edition designer or studio pieces where the factors contributing to the asking price are too many and diverse, comparing is not possible.
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Your host Vasco Kirov
Award winning jewelry designer
and master goldsmith
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