The Hidden Costs of Operating a Retail Jewelry Store

Operating a retail jewelry store is no easy task. In addition to knowing and identifying the different types of metals and gemstones, along with their purity, you'll also need to build strong customer relationships to keep people coming back. You can offer top-of-the-line jewelry at rock-bottom prices, but it's not going to benefit your business much unless you develop lasting professional relationships with customers. Of course, you'll also need the resources and capital necessary to keep your jewelry store business open. In this post, we're going to take a look at some of the 'hidden' costs of operating a jewelry store.

Security / Theft Prevention

One expense that many first-time jewelry store owners seem to overlook is security and theft prevention. Installing a video surveillance system, security systems, ceiling mirrors, and glass display cases in your store are all excellent techniques for reducing the chance of theft. It's not something jewelry store owners like to think about, but theft is a real possibility that can force your business into the red zone if you don't take the necessary precautions. Jewelry store owners should think of security and theft prevention as an investment that will pay off in the long run.

Insurance

Of course, insurance is another major expense in operating a retail jewelry stores. While all retail businesses need insurance to operate, it's typically more expensive in retail jewelry stores. This is due in part to the fact that a jewelry store's inventory is more valuable than a clothing or grocery store. If a fire, flood or theft were to wipe out your business, the insurance provider would compensate you for your loss.

It's recommended that jewelry store owners shop around for insurance from multiple providers. Never choose the first policy you come across, as you can likely find a better one for cheaper. Purchasing insurance for your retail jewelry store is a big decision, so take your time to find the policy that's right for you.

Inventory

Most retail jewelry store owners realize that inventory is a necessary expense with this business; however, what they may not realize is the true cost of inventory. Depending on the size of your store, and its particular niche, you may end up spending several hundred thousand or even $1 million+ on inventory alone.

If you're struggling to pay for all of the necessary expenses associated with running a retail jewelry store, don't be afraid to reach out to some banks and financial institutions in your area. There are many different types of business loans available for retail stores and entrepreneurs.

Tips To Improve Customer Satisfaction In Retail Jewelry Stores

Customer satisfaction is a key component to running a successful retail jewelry store. You can offer the best selection of high-end rings, necklaces, earrings and bracelets all at rock-bottom prices, but it's all for nothing unless your customers are 100% satisfied. Retail jewelry is a cutthroat industry that requires a focus on customer satisfaction and service. Without this element, customers will take their business elsewhere. In this post, we're going to reveal some effective tips to improve customer satisfaction in retail jewelry stores.

Offer Flexible Financing Options

Let's face, customers aren't always able or willing to shell out the full price for a diamond engagement ring or some other piece of high-end jewelry. However, you can help them out by offering flexible financing options based on their income and credit. As long as the customer is fully capable of making monthly payments, you should give them the ability to purchase the ring. It's not a bad idea to offer a 6 or even 12-month no-interest financing plan where customers have a certain amount of time to pay it off without interest. If they aren't able to meet these obligations, the customer will then be faced with interest charges.

Free Ring Sizing and Engravings

You can set your jewelry store apart from your competitors by offering free sizing and engraving services with rings purchased at your store. Instead of nickle and diming customers for services such as these, why not offer them free with the purchase of any rings in your store? This will encourage customers to purchase your products while sending the message that you care about the customer. It's a win-win scenario that benefits both parties.

Sizing and engravings take very little work and time. Even if you are unfamiliar with the process, you can outsource these services to a third party. However, it's important to only use the services of a third-party company that you know and trust.

Jewelry Sales and Promotions

Running special promotions and sales on your products will also result in higher customer satisfaction. Customers want to feel like they are getting a good deal on their purchases. So, try running sales around the holidays, weekends or special occasions. You could even offer a "back-to-school sale" for certain jewelry products in your store. Spread the word about your promotions through various outlets and marketing material so people know about it.

Customer Service Tips For Jewelry Store Owners

The retail jewelry industry is built around strong customer relationships. By maintaining a strong customer-oriented business, you'll naturally encourage visitors to keep coming back. Instead of making just a single sale off a customer, your store will likely generate several more in the future. Overlooking this critical fact could essentially spell disaster for your jewelry business. To learn more about ways to improve customer service in the retail jewelry industry, keep reading.

Tip #1 - Smile

Ever walk into a store only to see the owner or attendant glaring you down? You probably don't feel like spending your money in a store such as this. Try to get into the habit of maintaining a smile at all times while you are working. I know this difficult to do, especially when you are having a bad day, but you must put on your best face; otherwise, customers will get the wrong impression about your jewelry store business. Maintaining a smile will essentially set the mood for your store, encouraging customers to keep an upbeat, happy attitude as well.

Tip #2 - Train Your Staff

Let's face it, all it takes to send a retail business spiraling downwards is one wrong employee.  When you aren't there to watch over the jewelry store, you need employees who are knowledgeable not only with the inventory, but with customer service as well. Train your employees the key fundamentals of good customer service, such as maintaining a smile, greeting customers with a "hello" and "goodbye," staying friendly, etc. The additional time it takes to train your staff the elements of good customer service will prove to be well worth it in the long run.

Tip #3 - Return Policy

One of the worst mistakes you can make when running a retail jewelry store is having a "ALL SALES FINAL" policy. The truth is that no store owners enjoys doing returns, but it's necessary to keep customers happy. Turning your customers away when they accidentally purchased the wrong type of ring or necklace will only put a bad taste in their mouth in regards to your store. As a result, it's doubtful they will come back to shop at your store again. If you want customers to keep coming back for all of their future jewelry purchases, you must allow returns. Whether it's 7, 14 or 30 days, you must have some sort of return policy in place.

Jewelry Store Laser-Engraving vs Etched-Engraving

If you run or are thinking of running a jewelry store, you should offer a free engraving service to your customers. Once you've learned the process, it should only take you a couple minutes from start to finish. By giving out free jewelry engravings to paying customers, you'll naturally draw more people into your store; thus, resulting in greater sales and greater profits. Here, we'll take a closer look at laser vs etched-engraving and reveal which one comes out on top as the winner.

Etched-Engraving

In the past, nearly all jewelry engraving was done using this method. As the name suggests, it involves "etching" the words, letters, numbers or phrases into a piece of jewelry. Most jewelry stores who participate in etched-engraving use a large diamond-tipped needle that's hooked up to a machine to create engraving. The needle essentially digs out a small portion of the jewelry, leaving behind a clean etched design. Etched-engraving is incredibly cheap, effective and fast. The only real downside to this method is that you'll have to frequently replace the diamond-tipped needle in order for it to work properly. If the diamond begins to wear down, it may not produce a smooth engraving.

Laser-Engraving

On the other side of the fence is laser-engraving. Instead of using a diamond-tipped needle like etched-engraving, it's done with a laser device. The device sends a concentrated beam of high-heat energy directly the ring or jewelry's surface. By using a computer program, the jeweler can tell the laser where to engrave.

One of the differences that you'll notice is that laser-engraving doesn't leave an indention behind like etched-engraving. Instead of digging into the surface of the jewelry, it creates the engraving by using high heat, essentially burning it. This is why most pieces of laser-engraved jewelry have dark engravings that are more prominent than etched-engraved jewelry.

Hopefully, this will give you a better understanding on the two different types of jewelry engravings. While the end result for both methods is quite similar, there are some notable differences that shouldn't be overlooked. For starters, etched-engraving creates a small groove in the jewelry, while laser-engraving burns the surface. I recommend offering both of these engraving techniques to customers, as some people prefer laser and others prefer etching. Be sure to discuss the different methods with your customers ahead of time so they are fully aware of what the engraving will look like.

Common Pitfalls of Running a Retail Jewelry Store

Owning and managing a retail jewelry store can be a financially rewarding experience that allows you to build long-lasting friendships and relationships with customers. If you enjoy the jewelry trade and have a desire to please customers, then a retail jewelry store might be the career choice for you. However, you'll want to avoid the common pitfalls listed below. While you may already know some of them, chances are there are others that will surprise you.

Pitfall #1 - Too Much Competition

When you are scouting a location for your retail jewelry store, pay close attention to how much competition is in the area. It should go without saying that too much competition will make it incredibly difficult for your retail business to get off on the right foot. It doesn't necessarily mean it's impossible, but it's certainly going to require more work. On the other hand, no competition at all could be a sign of a bad location. Ideally, you should have minimal competition around the area where you intend on opening a retail jewelry store. Take the time to do your research and scout out various locations beforehand to determine which area is the best choice for your jewelry store.

Pitfall #2 - Not Utilizing Displays

Jewelry is a unique product in the sense that it needs to be secured, yet still visible enough for customers to easily see it. So, how are you supposed to accomplish this? Well, one of the best ways to show off your store's jewelry is with a glass display case. This will keep your jewelry locked behind a glass door to help reduce the chance of shoplifting. However, customers will still be able to see exactly what the jewelry looks like through the clear glass top. You can even go one step further by choosing a glass display case with mirrored sides for an additional level of visibility. The bottom line is that every retail jewelry store needs to have at least one display case for their product.

Pitfall #3 - Poor Marketing

You can't expect to have any level of success with your retail jewelry store business unless you invest some of your time and money into marketing. People living around the area simply won't know your store even exists unless you spread the word. While there are countless different mediums for advertising, you'll want to focus on local methods first. This will allow you to develop an ongoing client base where you'll have returning customers.

Tips For a More Successful Jewelry Store Business

The retail jewelry store business isn't for the faint of heart. One of the biggest hurdles store owners face is trying to compete with the "big" companies out there who spend millions of dollars each month on expensive advertisements. As a newcomer to the industry, you probably aren't going to have this kind of disposable income available to use on advertisements. Instead, you'll have to come up with other ways to bring people through the door, at which point you can hopefully turn them into paying customers.

Tip #1 - Exceptional Customer Service

I can't stress enough just how important customer service is in the retail jewelry store industry. If you aren't friendly and down to earth with each and every one of your customers, you will essentially be losing their business. As a result, they will take their business elsewhere to find a jewelry store owned and operated by people who treat them in a more friendly way. On the other hand, going above and beyond your customers' expectations will give them the impression that you care about them. Be sure to greet each person who enters your jewelry store with a warm hello and friendly smile. You also do other things such as offer free ring sizing, free jewelry inspections, etc. The trick is to set yourself apart from the big-name companies by improving your customer service.

Tip #2 - Showcase Jewelry In Display Cases

No matter what type of jewelry your store focuses on, you should use display cases to show it off to customers. A large glass display case with mirrored sides will create an attractive area for people to view your items and products. Whether it's rings, necklaces, bracelets or costume jewelry, a display case is the perfect way to show it of. Customers can then see each individual piece of jewelry in a nearly organized box, adding to the appeal by giving it a touch of class. In addition, display cases are also useful for protecting your jewelry against theft. It's not something jewelry store owners like to think about, but shoplifting does occur, and it's up to you to protect against it.

Tip #3 - Special Promotions and Sales

It should come as no surprise that offering sales and special promotions will naturally increase a jewelry store's sales. If you haven't done so already, get a calender and mark all of the holiday. You can then come up with sales and discounts for these holidays. After all, occasions such as Mother's Day, Valentine's Day and Christmas will be the busiest time for your store.

Choosing The Right Display Case For a Jewelry Store Business

A display case is something that every jewelry store business should have. Not only will it help to protect against theft, but it will also offer an attractive way to show off your goods and products to potential customers. The more "welcoming" your products look, the more sales you are going to have. So, which type of case should you purchase? Keep reading and we'll take a closer look at some of the things to consider when choosing a jewelry store display case.

#1 - Size

One of the most important factors you'll need to consider when shopping for a display case is size. It should go without saying that larger display cases will allow you to show off a greater amount of inventory. Instead of purchasing 3 or 4 small cases, you might be able to get away using just 1 or 2 large ones. The only downside, however, is that some of the larger ones might not fit in every store. Before purchasing one, take a few minutes to get the exact measurements where you intend on using them.

#2 - Locking Mechanism

The locking mechanism is something else that you'll want to take note of. Whether you sell low, mid or high-end jewelry, you'll want to keep it safely stored behind locked glass to sway potential shoplifters. Make sure any display case you purchase has some form of locking mechanism, such as track locking. This is an essential feature that every jewelry store owner should invest in.

#3 - Mirrored Panels

Another neat little feature in display cases that can help both you and your customers are mirrored panels. As the name suggests, these are mirror panels lining the walls of the display case. The primary benefit to using a case with this feature is that it makes the jewelry easier to see; therefore, you and your customers will have more visibility when it comes to the product inside the case. Display cases with mirrored panels do tend to cost slightly more than models without this feature, but you'll likely find it's well worth the investment.

Hopefully, this will give you a better idea on what to look for when choosing a display case for your jewelry store business. It's an otherwise simple store accessory that can turn into one of your biggest assets, which is why it's important to choose the right one. Take your time and pay close attention to the features and designs before making your decision.