While retail stores offer convenience and a wide selection of pre-designed jewelry, they often come with high markups and mass-produced designs. Working with a private jeweler ensures personalized service, competitive pricing without the overhead costs of a showroom, and custom pieces that are unique to your style. Understanding the key differences between retail and wholesale options can help you make the best choice based on your specific needs, budget, and expectations.
Most jewelry stores buy their inventory from wholesalers and manufacturers, but sourcing can be time-consuming and expensive. The process involves traveling to jewelry trade shows, where jewelers can meet with suppliers and manufacturers to discuss products and negotiate prices. Trade shows can also provide a great opportunity to network with industry professionals, which can be useful for future business connections and opportunities.
Wholesalers supply essential jewelry-making materials to the bulk of the industry, including stones, sterling silver, and clasps. They typically offer low minimum orders and a wide range of sizes and colors to cater to various market segments. In addition to supplying a variety of basic jewelry supplies, some wholesalers also offer a limited line of finished goods, such as rings and necklaces.
Jewelry retailers, on the other hand, purchase their inventory primarily from wholesalers, but they may also use their own manufacturing capabilities to produce a few of their own lines of jewelry. This enables them to have more control over quality, design, and pricing and to maintain their brand reputation. Retailers also take advantage of a more flexible buying process, which can allow them to adjust their inventory quickly and efficiently based on market demands.
Retailers purchase their merchandise on a consignment basis, which gives them the option to hold the item for a specified period of time, or “on memo,” while they market and sell it. This type of arrangement allows them to showcase new products without making a direct investment, and the jewelry store only pays for the piece when it sells. If the piece does not sell, it is returned to the supplier. This is a popular way for jewelry stores to keep their collections fresh and appealing to customers.
Aside from selling their own manufactured jewelry, many independent jewelers work closely with local suppliers to create custom-designed items for clients. These customized pieces can be one-of-a-kind engagement rings, necklaces, or earrings that are crafted to the client’s specifications.
Whether you’re purchasing jewelry for yourself, your spouse, or as a gift, knowing the difference between retail and wholesale will help you find the best value. Understanding the relationship between these two terms can also save you money when shopping for jewelry, as it enables you to negotiate prices with both retailers and wholesalers. Founded in 1906, Jewelers of America is the national trade association representing all aspects of the fine jewelry marketplace. Its members include independent jewelry stores, jewelry manufacturers, retail chains, designer and luxury brands, and suppliers of materials and services.
