Module 5: Pricing Repairs and Custom Work: Labor, Materials, and Margin

Why This Module Matters

A repair or custom quote is a promise, not a rough guess. It needs to cover the actual material cost, the skilled labor involved, and a margin that keeps the service sustainable — while also being clear enough that the client understands what they are agreeing to and what happens if the scope changes. This module covers the pricing logic, deposit structures, revision policies, and estimate-versus-quote distinction behind that promise.

The Three-Part Price: Labor, Materials, and Margin

Every repair or custom-work price needs to account for three distinct components:

1. Labor — the bench jeweler’s skilled time, including inspection, actual bench work, cleanup, setting, and final quality control. This is the main driver in a simple repair, where material cost may be modest but expertise is not.
2. Materials — new metal added in a ring up-size or re-shank; replacement stones; solder; new clasps; casting alloy; CAD printing media; and any outside-vendor charges (casting, laser welding, specialized stone setting). This is often the main driver in a custom piece or substantial restoration.
3. Margin — the amount that covers the store’s operating costs and produces a sustainable profit above the direct labor/material cost. Leaving this out of a quote doesn’t make the job more client-friendly; it simply means the store is subsidizing work it cannot afford to keep offering.

The useful client-facing framing is not “we charge extra for labor” but “this price covers the specific work and materials required to do this safely and correctly.” A client generally understands that a skilled bench jeweler’s time has value when that work is made visible rather than hidden inside an unexplained total.

Estimate vs. Quote: A Difference That Prevents Disputes

These terms get used loosely, but operationally they mean different things:

• An estimate is a good-faith projection based on what is visible at intake. It is appropriate when hidden conditions may change the scope — a ring with an apparently simple crack that may reveal deeper metal fatigue once cleaned, for example. An estimate needs to say what assumptions it rests on and make clear that the store will seek approval before exceeding it.
• A quote is a fixed price for a defined, agreed scope of work. Once the job is fully assessed and the scope is specific, a quote gives the client and store a clear, shared commitment. If a new condition emerges that changes the work, the original quote should not be silently exceeded; the job returns to the approval stage from Module 2.

The discipline is simple: never let an estimate masquerade as a quote. Clear language at intake — “this is an estimate pending the bench inspection; if we find anything that changes the scope, we will contact you before doing additional work” — prevents one of the most common sources of repair disputes.

Repair Deposits: When and Why

Routine, lower-cost repairs may be paid at pickup, but a deposit is reasonable and common when the store must purchase materials, commit outside-vendor work, or reserve significant specialized bench time. A deposit should be explained as protecting specific, recoverable costs rather than as an arbitrary hurdle: “For this repair we ask for a deposit to cover the new metal and the specialist time involved. It is applied directly to your final invoice when you collect the piece.”

For substantial repairs, a deposit also confirms that the client is ready to proceed after the scope and price have been fully explained — a practical commitment signal that keeps the repair pipeline from filling with abandoned work orders.

Custom Design Deposits: Design Work Is Work

Custom work adds a separate category of labor that clients don’t always see: concept development, sourcing, CAD modeling, and revision cycles. Across real custom-jewelry policies reviewed, there is strong agreement on the core principle: a deposit is required before custom work begins, and the amount typically either covers the design/CAD phase specifically or represents a meaningful percentage of the total project once the scope is agreed.

Common structures include:

• A design/CAD deposit — commonly cited around $200-300, sometimes higher for complex projects — paid to begin design work. It is frequently non-refundable once CAD labor has begun, but is often credited toward the final purchase if the client proceeds.
• A production deposit — commonly 30-50% of the total agreed price, with 50% particularly common when the project involves expensive materials or a significant stone purchase. This covers the material cost and a portion of labor once the design is approved and production begins.
• Staged payments for very large or complex commissions — for example, an initial design deposit, a payment upon CAD approval or material procurement, another at production start, and the balance on completion. This protects the store’s cash flow without asking the client to pay the entire amount before seeing progress.

There is real variation in exactly which deposits are refundable, when they become non-refundable, and whether a design deposit is credited to the final sale. That’s normal — what matters isn’t a universal policy number, but that the store’s own policy is written clearly and explained before a client authorizes work.

Revision Limits and Scope Changes

A quote that includes unlimited CAD revisions has no real ceiling on labor cost, and the custom-design policies reviewed consistently deal with this by including a defined number of revision rounds (commonly one to three) within the design deposit, then charging an additional design fee for further revisions. The important client conversation is at the start, not after the client has already requested a fourth change: “Your design fee includes the initial rendering and up to three revision rounds. If you need more changes after that, we’ll tell you the additional design cost before we make them.”

The same principle applies when a client changes the chosen stone after the CAD is approved: the model was built around specific stone dimensions, so a stone change may require a new model and a new design fee. This isn’t a penalty; it’s a direct consequence of the work already completed and the new work the change creates.

A Worked Scenario: The Scope Change After Inspection

A client brings in a gold ring with a crack in the shank and receives an estimate for a simple solder repair. Once the bench jeweler cleans and examines it under magnification, they discover the shank is thin throughout, and a full re-shank is necessary for a safe, durable result. Rather than proceeding and billing the higher amount later, the associate calls the client: “We completed the bench inspection, and the crack turns out to be part of a larger thinning issue. A simple solder would close the crack but wouldn’t give you a durable ring — the recommended repair is now a full re-shank. The original amount was an estimate based on the visible crack; the full re-shank quote is [amount] and would take [time]. I have photos from the inspection, and I won’t authorize the additional work unless you’re comfortable with the updated scope and price.” This is the estimate-versus-quote discipline in practice: clear, documented, and client-approved before the scope expands.

Practice Exercise

Practice explaining a three-part repair price (labor, materials, margin) to a colleague without using internal accounting language. Then practice the initial custom-design deposit conversation, including the design fee, the included revision limit, the production deposit, and what happens if the client changes their stone after CAD approval.

Key Takeaways

• Every repair or custom price must cover labor, materials, and margin; labor includes the skilled bench time and quality control that make a safe, durable result possible, while materials include metal, stones, consumables, and outside-vendor work.
• An estimate is a good-faith projection based on visible conditions; a quote is a fixed price for a defined scope. Never let an estimate masquerade as a quote, and seek approval before a hidden condition expands the scope.
• Repair deposits are appropriate when a job requires new materials, outside-vendor work, or significant specialized bench time; explain them as a direct credit toward specific work, not an arbitrary barrier.
• Custom projects commonly use a design/CAD deposit plus a 30-50% production deposit after approval, with staged payments for larger commissions. Exact policies vary, but the store’s specific policy must be written and explained before work begins.
• Revision limits protect both client expectations and the store’s design labor. Include a defined number of revisions, disclose any additional-fee trigger upfront, and explain that a post-approval stone change may require a new CAD model and design fee.