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Wholesale Jewelry Trade Secrets #2
The BIG Boys don't want you to know.The # 2 trade secret that 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 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 retailers mark-up the price so high is that theybelieve a higher price tag increases its perceived value.How can stores that have 50% discounts still stay in business?Have you ever seen small silver trinkets at stores selling for over $100?The mark-up can be as high as a few hundred percent. But a high price tagat a 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. Even if you don't feelcomfortable buying on the internet, you can use the price to negotiatea better price at the store. Almost all Brick and Mortar storesare negotiable on price. Remember, most retailers mark-up their atminimum 100%, so if you are ready to purchase, they will definitely negotiateon price to make the sale. Just tell them the price that you found for the exactsame item on the internet. You will probably not be able to get as low of a priceas the internet, but if you want the peace of mind touching the andtalking to a sales person, the higher price may be worth it.How is so much cheaper on the internet?The nation's largest 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 importersor 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 higherHigh price tag doesn't always reflect true valueMost prices at stores are negotiable. None
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