A making charge is essentially the labour charge involved in creating every piece of gold jewellery. Making charges are a reflection of current gold rates. Making charges can be quoted in two ways – either as a percentage of the gold value or as a flat making charge per gram of gold.
Making charges vary depending on the type of gold you are buying because every jewellery ornament requires different style of finishing & cutting. It also depends on how much fine detailing is required in the design, i.e., if it is a man-made or machine-made. Machine-made jewellery usually costs less than man-made ones.
Some jewellers call it ‘making charges’ and others may term it as ‘wastage’. Making charges are termed differently by each jeweller. There can be small differences in making charges depending on which gold market you are buying from. In a scenario where gold prices are increasing, a flat making charge will be beneficial to the customer whereas when gold prices are falling, percentage based making charges can be more beneficial.
One could be fleeced into paying higher making charges than necessary. Insisting on fixed making charges could make gold purchases cheaper and would definitely be the smarter way to go about it. Customers can bargain and negotiate for a reduction in the making charge at most jewellers. This is possible because the percentage of these charges is not standardised across jewellers in India. Even at the same jewellery store, the discount that the salesperson offers will vary from the discount offered by the store manager.