There is a plethora of things an individual will need to consider when starting a jewelry business. One of the first and arguably most important questions is whether they should start a Wholesale jewelry business or retail jewelry business, we will go into some of the benefits and drawbacks of each business model. Do not worry, we are not going to use overly technical terms but at the end of this conversation you should be able to make a better informed decision. This is what we are going to be covering so you know what to expect.
- Risks and benefits associated with wholesale jewelry business.
- Risks and benefits associated with a retail jewelry business.
- Best ways to Maximize your earnings.
Wholesale Jewelry Business Risks
With a wholesale jewelry business model, you would not be selling to the average person on the street but instead dealing with individual jewelry shops.
These shops would be selling your jewelry to the average person on the street. Since these retail shops need to make a profit you will have to sell them your jewelry at substantially discounted prices, the difference between what the retail jewelry pays you and what their customer pays them is their profit margin.
Since you are not able to make a considerable amount of money from each purchase the business model is predicated on selling larger volumes of jewelry. A potential drawback is some of these retail jewelry shops will require terms, this means they cannot pay you upfront for the jewelry but will need credit which gives the merchant time to sell the jewelry.
This is part of the wholesale business model so you should take that into consideration before you make any firm decisions.
Retail Jewelry Business Risks
The next thing we will need to look at is the risks associated with retail jewelry business model. One of the primary challenges is that you will need to invest a considerable amount of time and resources finding a place to open up your business.
Aside from the challenge of finding a suitable location you will need to work hard when trying to locate a paying customers. While the retail jewelry business owner can earn more money per customer they are also taking on considerably more risk as well.
This business model would be ideal in an area where there is a large population and a significant portion of that population has a large amount of disposable income.
Maximizing your Earnings
In order to maximize your earnings, the first and arguably most important step in the entire exercise is selecting the right type of jewelry.
There are timeless pieces that will always have mass appeal but they are generally expensive.
What you need to do is look at what the celebrities are wearing, most young people are influenced by pop stars so if you want to maximize your earnings try to select brands that have the greatest universal appeal and you should be fine.
