Overhead costs
The creation of jewelry and its distribution is a business that incurs costs like any other
business. These costs are offset by the profit made selling the product. The jewelry
manufacturer sells at a price to cover the costs of business overhead, such as machinery,
staff, sales, and marketing, as well as turn a profit. This process occurs again down the
supply chain when the importer, distributor, or retailer must sell the item at a price
where these costs can be recouped and a profit made. The importer will have to factor in
shipping and customs duty costs involved with getting the jewelry into the country, while a
distributor may have to add costs for warehousing and storing the pieces. The final
retailer will often have costs of running a brick and mortar location and advertising to
customers.
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