Wholesale Jewelry Trade Secrets #2

Eugenia Bivines

The BIG Boys don't want you to know.The # 2 trade secret that jewelry stores don't want you to know is that theiraverage retail mark-up is 100% and Higher. Actually, this information isavailable 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 jewelryretailers do not sell in high volume, their profit must be high for each itemin order to stay in business.Another reason some jewelry retailers mark-up the price so high is that theybelieve a higher price tag increases its perceived value.How can jewelry stores that have 50% discounts still stay in business?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 tagat a jewelry store does not necessarily reflect its true value.Have you ever noticed that some stores always have a 40% sale sign especiallyaround Holidays?You should watch out for these stores because they always inflate the priceand 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 onthe internet. After comparison-shopping at least 3 internet jewelers, you willget a good idea of the lowest price you can find.

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