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Jewelry Store Secrets
If you are looking to buy jewelry, we recommend that you read this report first, 3 Trade Secrets Jewelry
Stores Don't Want You To Know. This FREE report contains valuable insight from trade secrets that are only
known to professionals in the jewelry business. Most importantly, it can save you money.
Here is an excerpt from the report:
The #3 trade secret that jewelry stores don’t want you to know is that a diamond goes through an
average of 8 middlemen and precious metal jewelry goes through an average
of 4 middlemen before it is sold to the consumer. Every time jewelry goes
through a middleman, a mark-up is added. For example, let’s look at a
20 gram 14k figaro chain. The manufacture sells it to wholesaler 1 for $120.
Wholesaler 1 sells it to smaller wholesaler 2 for $144. Wholesaler 2 may sell it
to even smaller wholesaler 3 for $170. Wholesaler 3 sells it to a retailer for
$200. Finally, the retailer sells it to the consumer for $400. By the
time any jewelry reaches an end customer, the price is marked up several times.
Now what if you could buy the chain directly from wholesaler 1? Even if the
wholesaler marked up the chain 100% to $240, you would still save $160
off the retail price!
So why don’t all wholesalers sell direct? Almost all wholesalers sell in large volumes and
require a minimum order. So when Wholesaler 1 sells a 14k figaro chain for $144,
they may sell 1000 at a time. The second reason is that wholesalers are not set
up to deal with tens of thousands of customers. But the internet is changing the
way business is done. Imagine a large national jewelry chain with 1000’s of
stores. Not only do they buy from a wholesaler, they also have to distribute
small parcels from their distribution center to each store. And since each store
can only carry a limited inventory of each style, the selection is very limited.
Now say wholesaler 1, who specializes in 14k gold jewelry, decides to sell direct to the
consumer through internet. Wholesaler 1’s 14k inventory is greater than the
combined inventory of 100’s of retail jewelry stores across the nation, offers
a greater selection, and eliminates multiple middlemen, which are all benefits
for the consumer. This is exactly how established internet jewelry stores
operate. It is almost impossible to find a retail jewelry store with as much
selection as the largest internet jewelry stores. The main reason is retail
stores have a common business practice: carry a little bit of everything.
Most jewelry stores carry a limited selection of diamonds, gold jewelry, silver
jewelry, white gold jewelry, and platinum, while wholesalers focus on carrying a
great selection of one type of jewelry. So wholesaler 1 may sell only gold
jewelry, wholesaler 2 may sell only earrings, and wholesaler 3 may sell only
loose diamonds. With the low cost reach of internet, each of these
wholesalers has the potential to sell direct to consumers all over the US with
just one distribution center. Without the cost of distribution to 1000’s of
smaller resellers, the savings passed on to the consumer are substantial.
So remember, when purchasing jewelry, the more middlemen you cut out, the more money you will
save. Although internet jewelry stores tend to cut out the most middlemen, even
retail stores can cut out middlemen as well. If you decide to purchase your
jewelry at a retail store, choose a store that has a large selection and inventory
of the type of jewelry you want because these stores usually purchase from
larger wholesalers than jewelry stores that sell a little bit of everything.
Trade Secret #3 Summary
- Many middlemen means multiple mark-ups
- Many internet jewelry stores are wholesalers that sell direct in large volumes, which means lower prices and more selection for you
- Retail stores that specialize in one type of jewelry and carry a large inventory usually cut out multiple middlemen, saving you money
Trade Secret #2: What's the Markup on Jewelry? and Trade Secret #1: Watch the Weight of Jewelry contain even more valuable information
that can save you money. For the entire 3 page report, click here
Until next time,
Elizabeth
GoldenMine Jewelry Specialist
http://www.goldenmine.com
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Copyright © 2002 GoldenMine.com, Inc. All rights reserved.
All content is property of GoldenMine.com, Inc. and may not be distributed,
modified, or reproduced in any form.
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