Tandon Gems

What gross margin should you target on gemstone bead strands?

Anish Tandon, Founder, Tandon GemsPublished April 22, 2025· Reviewed September 7, 2026· 4 min read

This article is a reference guide. Some older product details and imagery have been omitted pending verification. Confirm the current strand, price and quantity with Anish before ordering.

Short answer

Treat keystone, a 2x markup, as your floor rather than your target on small faceted goods. Gross margin at keystone is 50 percent before overhead. Push well above that multiplier on 2 to 4 mm sapphire and tourmaline, where bead counts and bench time run highest, and sit nearer keystone on larger labradorite pears and nuggets.

In short

  • Keystone is a 2x markup. Use it only on strands you resell whole, with no sorting or stringing added.
  • Margin should rise as bead size falls, because small strands carry more beads and more handling per finished piece.
  • An 18 inch necklace takes about 104 beads at 4 mm and about 52 at 8 mm. The labor gap belongs in the price.
  • Ladder in steps: near keystone at 8 mm, a step up at 6 mm, higher again at 3 to 4 mm, top rung at 2 mm micro-faceted.
  • Set prices off replacement cost rather than an old invoice.
Photograph from our archive: sapphire, not a strand named in this article.

Keystone or something higher: which multiplier should you use?

Keystone is the trade's default and the easiest sum to do in your head. It sounds healthy until rent, packaging and card fees come out of the half you keep. Most bead sellers we talk to find keystone works on strands they resell whole, with almost no bench time added.

The moment you cut, sort, knot or wire-wrap, keystone starts eating your day. Anything above that floor buys the hours back, and higher multipliers are ordinary in this trade. Ganoksin's pricing walkthroughs describe doubling as a baseline that gets pushed up when the material or the sourcing deserves it.

  • Keystone: whole strands resold as they arrive, untouched.
  • Above keystone: anything you sort, split, knot or restring.

Why should margin climb as the bead gets smaller?

Small beads are labor disguised as inventory. A 15 to 16 inch strand of 4 mm rondelles holds about 95 to 100 beads, while an 8 mm strand of the same length holds about 48 to 52. Same strand, roughly double the handling.

Drill holes get tighter as size drops, so wire choice narrows and breakage rises. Micro-faceted 2 to 3 mm sapphire is the clearest case. We cut a lot of it in Jaipur because designers want it, and it is the size where a keystone price loses money once you count the sorting.

How do you ladder prices across 2 to 8 mm?

Build the ladder on multipliers rather than flat dollar steps, so it holds when your landed cost moves. Four rungs cover most bead lines cleanly. Customers read the progression as fair, because bigger stones cost more per strand while smaller ones cost more per finished piece.

Keep the rungs consistent across your whole line. Nothing confuses a wholesale buyer faster than one stone sitting at keystone and its neighbor two rungs up for reasons only you understand.

  • 8 mm and larger sits at keystone or a shade above. Fewer beads, faster stringing, higher strand cost.
  • Make 6 mm the next rung up. That is the volume size for bracelets and chokers.
  • Take 3 to 4 mm higher again, because bead counts jump and so does sorting time.
  • Reserve the top rung for 2 mm micro-faceted, with tight drills, slow work and a high loss rate.

Does the ladder change for sapphire, tourmaline and labradorite?

Yes, and mostly because of replacement risk. Sapphire is Mohs 9 and lands in small faceted sizes, so almost all of it sits on your upper rungs. Pink and Umba lots vary between parcels, and Ganoksin contributors argue for pricing against current replacement cost for exactly that reason. Read the color and origin notes on our sapphire guide before you set a rung.

Tourmaline behaves much the same. Multi rondelles are the volume item and take the 6 mm rung. Slices and pear briolettes are focals with no equivalent replacement, so they earn your top rung.

Labradorite is the outlier. It arrives mostly in larger faceted pears, daggers and rectangles, plus flat nuggets, at Mohs 6 to 6.5 with perfect cleavage. Big pieces sell near keystone. A strand carrying gold, green and purple flash alongside the blue is a different product and should be priced as one, and our labradorite guide explains how we sort those.

How many beads go into the piece you are pricing?

Margin math only works when you know how much of a strand a finished piece eats. Allow about 1.5 inches for clasp and findings, which leaves a beaded run of about 6 inches on a 7.5 inch bracelet and about 16.5 inches on an 18 inch necklace.

Standard strand length from our Jaipur cutters is 13 to 16 inches, and 13 inch strands are common for faceted rondelles. One strand covers a bracelet or a choker. A long necklace takes two. Each knot adds about 1 mm, so budget an extra strand on knotted 18 inch work.

  • A 7.5 inch bracelet takes about 38 beads at 4 mm, 25 at 6 mm, 19 at 8 mm.
  • Choker at 16 inches: about 61 beads at 6 mm, 46 at 8 mm.
  • For an 18 inch necklace, count about 104 beads at 4 mm, 70 at 6 mm, 52 at 8 mm.
  • Stretch bracelets with no clasp, 7 inches: about 29 beads at 6 mm, 22 at 8 mm.

What breaks a margin ladder in practice?

Stale cost is the main culprit. A hero strand bought once and priced forever off that old invoice will never cover the next one. The second culprit is a small-bead multiplier applied to a shape that strings fast, like rondelles, which sends customers to a competitor. Third is sorting time on multi-color lots, where you set aside the muddy beads and still paid for them.

Anish here. When I quote a customer on 2 mm sapphire, I assume some beads come off the strand before they reach a piece, and I would rather a designer build that into the retail price than discover it at the bench. Browse sizes across the line on our shop, set each rung once, then leave it alone for a full year.

Common questions

Is keystone ever enough on gemstone beads?

On large strands you resell whole, yes. If you sort, split, knot or wire-wrap, doubling rarely covers your overhead and bench hours. Move those items up a rung.

Should I use the same multiplier online and in person?

Keep retail consistent so buyers who see you in both places do not feel penalized. Your selling costs belong in the overhead calculation that sets the multiplier, rather than in a separate in-person price.

How do I price a single high-value focal like a watermelon tourmaline slice?

Price it against replacement cost. Focals with no close substitute support your top rung, because the next comparable piece may cost you considerably more when you go looking for it.

Do labradorite AAA strands justify a higher multiplier?

The higher cost already flows through your multiplier. What justifies a bump is scarcity of matched flash across a full strand, plus the sorting time you spend keeping the color consistent.

How often should I redo the ladder?

Once a year suits most lines. Recheck sooner if your landed cost on a stone moves sharply, since a multiplier applied to stale cost erodes your margin without showing up anywhere obvious.

Sources and checks

  1. Pricing Formula for Jewelry Pieces - Ganoksin Jewelry Making Community
  2. Tutorial on Pricing Jewelry for wholesale - Jewelry Discussion - Ganoksin Orchid Jewelry Forum Community for Jewelers an
  3. Bead and Necklace Size Charts - International Gem Society

Catalog details are reference information. Ask Anish to confirm the current strand, price and availability.

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