The world is constantly changing and the world of jewellery is no different. But if you utilize your expertise to keep ahead of the status quo, growth is possible.
There are two types of jewellers today; the ones struggling to find their way to compete in the new market reality, and the other ones who push their creativity into developing profitable new solutions. Here are several ways to help lessen the struggle and bring back the profit margin.
- Become the store in your market that becomes known for Customer Solutions. Unfortunately, there is some backlash currently which leaves customers longing for exceptional customer service. Go the extra mile with every customer. Give them service that they will boast about. One sale can turn into five near-term referrals, and you may save money on your marketing budget
- Be a specialist. If you are tired of being compared to the least expensive stone found online then sell stones no one else can find. There is huge value in the colour diamond market; particularly the stones with overtones. Find the shades of colour that suit your individual customer then sell to that desire.
- Know your shapes! Have you ever looked at a cushion brilliant and a cushion modified beside each other? How would your customer compare prices on Old Euro, Old Mine or Rose cuts? How does the number of chevrons affect the brilliance of a Princess cut? Quote stones that your customer can not compare so easily.
- Personalize your customer’s stone. Can a diamond’s origin complement your customer’s heritage? Are there numbers or dates that are important to your customer?
- Consider adjusting your margin on a diamond sale. It is very easy for your customer to find a generic stone online to compare to your price. Make sure your price plus the service is enough for the customer to tell five friends. You can build higher margins on the ring and also on the band than on anniversary, children’s or engagement rings
- There is a trend to substitute gemstones or Lab stones for center diamond. Most likely you can enjoy the margin from the 1980s on these sales. Lab-grown diamonds and Moissanites are exciting for some customers but limit the exposure to your inventory.
- Colour gets so much attention! There are so many exciting gemstones with which most customers are not familiar. Ask their favourite colours then double-check your prices on all sources. There is often a large discrepancy in wholesale margins on gemstones.
- Be the expert that our customers hope we are! There are multiple solutions to every repair or design issue. Try custom design CAD services; customers love the design process and the ability to personalise their “huge moment”. Repairs should still deliver your best margins and should also be higher when you tighten sourcing of materials.
All of us who work in the jewellery business are blessed to be working in this field. Remind yourself what you sell and who you are. Be proud of your brands! You sell the most beautiful items on earth; do you think customers negotiate with Lamborghini? Be consistent with pricing as every customer deserves the same great deal regardless of how many comparable quotes they may bring.
You are the expert in your field; ensure your marketing and customer services reflect your expertise.
