Whether you deal in exquisite custom jewelry or everyday fashion pieces, jewelers retail is about much more than just selling merchandise. In this unique industry, a well-thought-out retail strategy plays a vital role in profitability and brand image. By understanding your core customer base and applying these insights to all aspects of your business, you can ensure that your store shines as brightly as the precious gems you carry.
A jewelry store is not just a place to make sales, but a sacred space where dreams are realized and memories made. In this delicate and intimate environment, it’s important to treat your customers with utmost care and respect. This begins with avoiding common mistakes that can damage relationships and deter repeat business.
DO: Avoid asking the jeweler to break down their costs to make a design or why one piece is more expensive than another. This type of behavior can quickly turn into an argument and is completely disrespectful. It is akin to asking a dentist to explain the costs involved with a root canal or an optometrist to break down their prices.
DO ask for a discount, but don’t make it seem like you’re taking advantage of the jeweler. You may be able to work out a deal that’s beneficial for both of you if you approach the situation calmly and respectfully. Just remember that the jeweler has to cover their own overhead and may not be able to offer discounts as generously as larger retailers.
The best way to get a price that’s fair for both of you is to compare the specific qualities of each item. You can use our handy comparison chart to help. Also, consider bringing in a diamond loupe to examine the stone before purchasing it.
Many people don’t realize that the majority of large jewelry chains are produced abroad in places where labor is cheaper. This enables the companies to make hundreds or even thousands of the same design at a lower cost than an independent jeweler can in their own workshop.
A small jewelry shop can have more flexibility in their pricing, but they also need to factor in overhead and the fact that they will personally handle each piece of jewelry before it is shipped to a customer. For this reason, they can’t always match the prices of online retailers.
As a result, jewelers must balance their prices to attract and retain customers while still maintaining their profit margins. This requires a thoughtful, long-term strategic planning process to constantly evaluate and fine-tune their retail strategies. In addition, they must stay up-to-date on current market trends and consumer demands to keep their stores relevant and competitive. To do this, jewelers must utilize a number of different marketing and pricing tactics, including:
