Common Pitfalls To Avoid When Starting a Retail Jewelry Business
Running a successful jewelry store business isn’t an easy task by any means. Many newcomers to the industry are drawn to it for the large margins and profits. When it’s done right, you can have a long-lasting business that locals know and trust. Unfortunately, though, there are some common mistakes people make when starting a jewelry store that ultimately leads to their demise. To prevent these same mistakes from occurring to you, keep reading for a closer look into common pitfalls of starting a jewelry store.
Pitfall #1 – Not Offering Services
While the majority of your jewelry store’s revenue will come from direct sales, you can increase the amount of money your store brings in by offering various services to customers. If you walk into any major national jewelry store, chances are you’ll see just how many different services they offer. With so many stores taking advantage of this, common sense should tell you that it’s a lucrative venture. Instead of relying solely on sales, you can offer you customers services like ring resizing, laser engraving, jewelry cleaning, gemstone setting, repairs, etc. See what your competitors are doing through a little spying and offer similar services in your store.
Contrary to what some people may believe, you don’t actually need to know how to perform these services. If you aren’t familiar with these services, try hiring someone to come to come in and take care of this part of your business. You can offer them a certain percentage of all repairs done in your store, making it a win-win situation for both you and them.
Pitfall #2 – Not Establishing Customer Relationships
Having strong customer relationships is critical to running a successful jewelry store. If customers don’t know of trust you, they probably won’t come back, which will then result in lower profits and ultimately a failing business. The bottom line is that you need to treat each and every customer who walks in through the doors with respect. Make it a point to greet them with a friendly “hello” and say “good bye” or “have an nice day” when they are leaving.
Strong customer relationships will prove to be one of your most valuable tools as a jewelry store owner, so take full advantage of it when your customers are shopping around. Don’t be afraid to spark up a conversation with them. You more friendly you are with your customers, the stronger the relationship will be.
Pitfall #3 – Poor Pricing
A third pitfall that drags many jewelry stores down is poor pricing. When prices are set too low, you simply aren’t going to make enough profit to continue running a business. On the other hand, pricing your inventory too high will turn customers away. There’s a happy medium that you need to find to turn a profit while keeping your customers happy. Keep your inventory reasonably prices, but not so much that it results in a loss of store profits.
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