Despite high competition, jewelry stores continue to show high profitability results and are a good option to start your own business.
The peculiarities of jewelry as a product are a high margin, about 100-200%, as well as a small area occupied by the product.
Opening a jewelry store can make a good profit, of course, if you take this business seriously enough. The demand for jewelry remains stable, almost throughout the year, from young girls and women under 40 years old.
There is a particularly high demand for jewelry before the New Year, when a three-month revenue can be made in a few days.
It is also good to buy jewelry in February and March, the traditional months for choosing gifts. But the rest of the time, almost always, you can sell goods for several hundred thousand dollars, if the store is located in a good location.
The best locations for a jewelry store are popular shopping centers, close to shops selling women’s clothing, accessories, and cosmetics.
A separate store may turn out to be quite profitable, but its location in a crowded place, especially young people, is necessary. Since the product is usually inspected before buying jewelry, the store should be equipped with well-lit windows that provide the buyer with the maximum overview of the products on display.
It should be noted that costume jewelry is a product of spontaneous demand, they are bought simply because they like it.
Therefore, you need to do everything to attract customers to your store. A huge role in this is played by the correct lighting and display of goods. Very often, jewelry is successfully laid out along with other accessories for women: umbrellas, belts, wallets, combs, and so on. This allows you to attract additional customers and increase overall sales.
The most effective is the island location of the jewelry store, when customers have the opportunity to see the product from any side of the store.
Obviously, for sales success, you need to choose the right assortment. The goods should be purchased as high quality as possible, since the hot goods can be sold even a year after the wholesale purchase, on New Year’s Eve. Therefore, it is better to create an assortment of 200-300 items of high-quality goods than to buy thousands of different types of cheap jewelry.
Opening a jewelry store is not that burdensome. It is enough to spend about 200-300 thousand dollars on quite worthy glass showcases. Registration of a company, purchase of a cash register, other expenses may require another $100,000. Approximately another 200-300 thousand need to be spent on the purchase of goods.
The ideal option is direct deliveries of goods from China, which allows you to set a higher margin, avoiding overpayments to wholesale suppliers.
As an alternative, a wholesale supplier of batches of not too common costume jewelry is also suitable. As an option for opening your own jewelry store, you can choose a franchise of a well-known company. This will allow you to trade in high quality jewelry, but will increase the overall cost of starting a business. As a rule, opening a franchise costume jewelry store costs from 30 to 50 thousand dollars.
The main components of current costs will be staff salaries and high rent for space in the shopping center. However, a high markup on the goods allows you to achieve a profitability of about 20-25%, paying back the costs within 1 year. It is best to open a jewelry store in the fall or early winter in order to cover the main costs of starting a business during the super-profitable period of the New Year.
By ordering a business plan for a jewelry store , you can avoid many mistakes of novice entrepreneurs and quickly organize your own business.