Wholesale Jewelry Trade Secrets #2
The BIG Boys don't want you to know.
The # 2 trade secret that jewelry stores don't want you to know
is that their average retail mark-up is 100% and Higher.
Actually, this information is available if you dig through the
SEC filing for public jewelry companies.
Why is the mark-up so high on jewelry?
The main reason is that there are lots of costs associated in
selling jewelry. For example, each store has to pay rent, pay
commissions, pay its sales staff, pay for advertising, and hold
its own inventory. And because most jewelry retailers do not
sell in high volume, their profit must be high for each item in
order to stay in business.
Another reason some jewelry retailers mark-up the price so high
is that they believe a higher price tag increases its perceived
How can jewelry stores that have 50% discounts still stay in
Have you ever seen small silver trinkets at jewelry stores
selling for over $100? The mark-up can be as high as a few
hundred percent. But a high price tag at a jewelry store does
not necessarily reflect its true value. Have you ever noticed
that some stores always have a 40% sale sign especially around
You should watch out for these stores because they always
inflate the price and give you a big discount so you feel like
you are getting a great deal.
So how do you find a good price? The best thing to do is
comparison shop on the internet. After comparison-shopping at
least 3 internet jewelers, you will get a good idea of the
lowest price you can find. Even if you don't feel comfortable
buying jewelry on the internet, you can use the price to
negotiate a better price at the jewelry store. Almost all Brick
and Mortar jewelry stores are negotiable on price. Remember,
most retailers mark-up their jewelry at minimum 100%, so if you
are ready to purchase, they will definitely negotiate on price
to make the sale. Just tell them the price that you found for
the exact same item on the internet. You will probably not be
able to get as low of a price as the internet, but if you want
the peace of mind touching the jewelry and talking to a sales
person, the higher price may be worth it.
How is jewelry so much cheaper on the internet?
The nation's largest jewelry chains have more than 2500 stores
nation wide. Multiply 2500 stores by the cost of rent,
salespersons' commissions, advertising, and the cost of holding
inventory. That's a huge expense.
In comparison, most of the largest internet jewelers are direct
importers or wholesalers. This means they supply to 100's or
1000's of retailers in volume. And an online jeweler only needs
1 distribution center to serve the entire US, with few sales
persons. These cost savings result in lower prices for you.
Secret #2 Summary: Average Retailer mark-up is 100% and higher
High price tag doesn't always reflect true value Most prices at
jewelry stores are negotiable