Jewelers retail a curated selection of jewelry in physical or online stores, focusing on customer service and product knowledge. Unlike wholesalers, who sell in bulk to a broad range of customers, jewelers focus on connecting with individual consumers and creating custom pieces. They also offer after-sale services like repairs and customizations. Retail prices are typically higher than wholesale because of the added value of these services and the additional costs associated with running a consumer-facing business.
To stand out from the competition, a jewelry store must define its unique value proposition (UVP) and ensure that all aspects of its brand align with it. To identify your UVP, you must fully understand the cost of your production and marketing expenses as well as your customer demographics. This can be achieved through market research, such as surveys, focus groups, and social media analysis. This can reveal insights about your customers’ shopping habits, values, and communication preferences. If you are targeting environmentally conscious millennials, for example, your products should reflect this by being sustainably sourced or designed.
Your UVP should be communicated through your marketing strategy and clearly identified on all of your marketing materials, including your website, social media channels, and in-store signage. You should also regularly review your inventory to make sure that it aligns with your UVP and is a reflection of your company’s culture and values. Large jewelry companies can achieve this by collaborating with designers or celebrities to create exclusive lines of jewelry. Sterling Jewelers, for example, has a Jane Seymour-branded line, while JCPenney and QVC have celebrity costume and fine jewelry lines.
Another way to differentiate your jewelry is by offering special materials and designs that can’t be found at other stores. You can also use your marketing to communicate your UVP by highlighting the craftsmanship and luxury of your pieces.
As a jeweler, you must carefully manage your stock levels and production schedule to ensure that you can meet customer demand. This can be challenging if your business model is based on selling one-of-a-kind items that are not easily reproduced. In addition, you must also take into account your operating costs, such as rent, insurance, utilities, equipment, tools, petty theft, and damage.
Because of these unique challenges, a jewelry store must choose a retail management software that can support the complexities of your business. You should find a solution that allows you to track custom orders, create and maintain warranties, and catalog inventory with serial numbers. This will help you to be more efficient and reduce the risk of errors when managing your stock levels. Additionally, you should look for a system that allows you to streamline and automate processes that are repetitive, time-consuming, or manual. This will allow you to save on operational expenses and spend more time fostering relationships with your customers. For example, you should consider implementing a point of sale system that integrates with your payment processing platform to reduce paperwork.
