The making charge is the cost no published rate includes
Rashid Al MarriBullion desk editorA published rate for gold in Dubai never includes the making charge. The making charge is the cost a shop adds to a finished piece for the work of turning metal into jewellery, and it is set by each shop, not by the trade body. It can be quoted as a percentage, per gram, or rolled into a single ticket price, and it is the part of the till total that a buyer can negotiate.
What the making charge is
The making charge is the cost of fabrication: the labour, the design, the waste and the shop's own margin on the work. It is added on top of the suggested retail price per gram, and it is different for every piece. A plain bangle has a low making charge; a detailed necklace has a high one. The charge is not a secret, but it is not published, and a buyer who does not ask will not see it.
The making charge is the reason two shops on the same street can quote the same suggested retail price and still print different totals for the same piece. The suggested price is the same, but the making charge is set by each shop, and that is the part of the total that varies.
Three ways a shop puts a price on the work
The making charge is quoted in one of three ways: as a percentage of the metal price, per gram of the piece, or rolled into a single ticket price. A percentage is the most opaque, because the same percentage is a different sum of money on a gram and on a tola. A per-gram charge is clearer, because it is the same for every gram of the piece, but it still requires the buyer to know the weight. A single ticket price is the simplest, but it hides the making charge entirely.
A buyer should ask to see the making charge itemised, separate from the metal price. That is the only way to know what the work costs and what the metal costs, and it is the basis for negotiation.
Why the making charge never appears in any published rate
The making charge never appears in any published rate because it is set by each shop, not by the trade body. The Dubai Jewellery Group publishes a suggested retail price per gram, but it does not publish a making charge, because the charge depends on the piece. A trade body cannot know what a particular shop charges for a particular design, and so it leaves the charge to the shop.
The result is that a published rate is always an understatement of the till total. A buyer who walks in expecting to pay the published rate will pay more, and the difference is the making charge. That is why this page exists: to tell the buyer to ask for the charge, and to see it itemised.
The line on the bill worth asking for
A buyer should ask to see the making charge itemised, separate from the metal price. The shop should be able to say what the metal costs per gram and what the making charge is, either as a percentage, per gram, or as a single number. If the shop cannot or will not itemise, the buyer should walk away.
The itemised charge is the basis for negotiation. A high making charge can be negotiated down, especially for a plain piece, and a buyer who does not ask will pay the full charge. The charge is not fixed, and a shop that wants the sale will often reduce it.
The making charge on a finished piece versus a bar
The making charge on a finished piece is higher than on a bar, because a bar requires almost no fabrication. A bar is cast and stamped, and the making charge is small. A finished piece requires design, labour and often waste, and the making charge is large. A buyer who wants the most metal for the least money should buy a bar, and a buyer who wants a finished piece should expect to pay for the work.
The making charge is also higher on a lighter karat, because more alloy means more work to make the piece. That is a hidden cost of taking a lower karat: the metal is cheaper, but the making charge may be higher, and the two can cancel out.
The making charge and the till total
The till total is the weight times the price per gram, plus the making charge. The making charge is the part of the total that a buyer can negotiate, and it is the part that is never published. A buyer who wants to know the till total must ask the shop to itemise the charge, and then negotiate it.
The making charge is not a tax and it is not a fee; it is the shop's price for the work, and it is the shop's to set. A buyer who treats it as negotiable will pay less, and a buyer who treats it as fixed will pay more. That is the simple truth of buying gold in Dubai.
The making charge in brief
Next question
Questions about weight and price
What is the making charge?
The making charge is the cost of fabrication: the labour, design, waste and margin on the work of turning metal into jewellery. It is added on top of the suggested retail price per gram.
How is the making charge quoted?
It can be quoted as a percentage of the metal price, per gram of the piece, or rolled into a single ticket price. The most transparent is per gram, because it is the same for every gram.
Why is the making charge not in the published rate?
Because it is set by each shop, not by the trade body. The Dubai Jewellery Group publishes a suggested retail price per gram, but the making charge depends on the piece and the shop.
Can I negotiate the making charge?
Yes. The making charge is the part of the till total that a buyer can negotiate, especially for a plain piece. A shop that wants the sale will often reduce it.
Is the making charge higher on a finished piece?
Yes. A finished piece requires design and labour, so the making charge is higher than on a bar. It is also often higher on a lighter karat, because more alloy means more work.
A position on gold that never goes on a scale
An FxPro account deals in the price of gold rather than the metal: nothing is weighed, nothing is delivered and no making charge is added, because there is no piece to make. It is a different proposition from buying at a counter, and worth understanding as one before it is mistaken for the other.