Something in the human spirit always yearns for independence and this itch translates into a constant stream of new entrepreneurs who so often gravitate towards fashion jewelry. What’s so irresistible about this accessory? Beyond the high profit margins that wholesale fashion jewelry can offer retailers, lies an intrinsic beauty that creates truly wearable art. Yes, wholesale fashion jewelry offers great profit potential that allows retailers to convert small investments into the longest margin in the fashion industry, but the magic of the beauty of fashion jewelry holds consumers back. And this magnetic pull, more than anything else, drives the entrepreneur into retail sales specializing in jewelry.
Many of these new fashion jewelry businesses start at the simplest level with retailers purchasing fashion jewelry in bulk and introducing it to friends and co-workers. Easy sales and new earnings light a fire to grow the business, but what next? As a twenty-five year veteran of the wholesale fashion jewelry industry, I have seen business after business start this way and often grow to become the leading supplier of fashion accessories in a community. The learning curve never ends as fashion jewelry evolves, as do retail tactics, but some things never change and these key techniques will have a positive impact on your fashion jewelry business.
But first, how are you going to wholesale your treasure of fashion jewelry? Outgoing personalities love active selling. Visit businesses, throw parties, set up flea markets or craft shows, and bubble with excitement as you present stunning fashion jewelry to consumers. All they need is a crowd and permission to settle. Bingos, festivals, school picnics, car shows, sporting events, the list is endless. Overhead costs are low and actually stop when no sales activities are taking place. But so does sales, which is why many prefer traditional businesses with higher overhead costs, but which continue to operate even when you are not there.
The more calm and methodical personality may not live up to this bubbly enthusiasm and choose a passive sales mode. Successful businesses are often built without the entrepreneur engaging in active consumer sales. They connect with hair salons and other venues to provide fashion jewelry on consignment, and the owner benefits as does the entrepreneur. Methodical personalities think about details like how to handle missing item loss with no recorded sales. Raising the price and lowering the shipping fees offset the losses when the fashion jewelry has open exposure that can result in further shrinkage. The flip side is reduced sales in secure environments like showcases or behind the counter, which reduces losses, but unfortunately also sales.
Okay, both personalities have a selling method that they are comfortable with and both can expand their business with online marketing by working on websites while their sales support them as the websites grow, climbing higher in results. from the major search engines. But what about the 5 shortcuts to retail success? They come down to prices, selection, presentation, knowledge and benefits.
-First comes the price of wholesale fashion jewelry. New entrepreneurs often feel shock waves when they see the wholesale cost compared to the retail prices they paid as consumers. The first temptation is to undermine all the competition. Stop right there! -Because fashion jewelry is cyclical and low prices generate low profits that don’t push retailers through tough times. Do you want to spend all your profits on restocking wholesale fashion jewelry and covering overhead? Of course not, you want to grow your business and make a profit and price is important.
Retail uses a term called cornerstone, a nice word for doubling the wholesale price. Make the cornerstone the minimum for profit margin in fashion jewelry and look for items that give you room for much longer margins. The good has no rules. Let your intuition guide you because prices can always go down, but it is difficult to go up.
-Next comes the selection and this is a factor that large retailers, such as department stores, always strive to do well. Stroll through one and you will see that they have reduced staff on the floor, so the selection often has to sell itself. Department stores need “no-miss” options and have the resources, forecasts, statistics, and trained buyers to make these decisions. Small retailers need not be discouraged because this is not rocket science and you are closer to the clientele at your location than any major retailer.
Making the perfect selection depends on the age and demographics of your main customer base. Add this to the fashion trends of the season and you are close to perfection. How do you keep up with all those fast-changing fashion trends? Well, quick change is a myth. Trends change very slowly, often over a decade. Yes, subtle colors and adjustments happen every season, but today we are in the midst of classic trends that began in the early 21st century and have a promising future. More on this when we cover knowledge.
-Now for the presentation, make the fashion jewelry look special. Have you ever noticed how necklaces clustered on a tee bar at the top of a display case seem to scream “I’m on sale” as the things in the display whisper “I’m special.” That’s the presentation and how it has changed even for department stores.
Teri Agins in The End of Fashion details how department stores that were once “the first eye contact with fashion” and “introduced merchandise concepts to customers” shifted in the late 20th century to a collection of brands. Agins quotes a luxury shopper who “was horrified when he discovered $ 19.99 Nine West shoes alongside $ 350 Chanels” at his favorite department store that he was compromising his elite fashion image. Make an item look special and acquire the perception of higher value.
-Next comes the knowledge that is worth more than the price. Don’t you think so? Think about the items you bought because the seller impressed you with deep knowledge of the product. That was worth more than the price. I personally experienced this lesson when I did a trade show with a colleague. I told my clients that the fashion jewelry was real value for the price. Your salesperson painted a verbal picture of the wholesale fashion jewelry with the season’s clothing and wrote more orders without customers knowing the price.
Knowledge is knowing the trends and knowing the article. Consumers trust a knowledgeable source and when you know what the current style is and why it looks good on the customer, the burden of buyer choice is removed.
Today’s knowledge is deeper because classic trends in fashion jewelry incorporate components of gemstones, shells, Murano-style glass, Millefiore, and more into jewelry designs. A story goes a long way in explaining glass jewelry and gemstone knowledge that removes the doubt as to whether it is real. Don’t be overwhelmed with understanding trends and knowledge of current components because everything is detailed in one report, Wholesale Fashion Jewelry: The Magic of Trends (find a link to the report at the bottom of this article).
-Finally there are benefits. Think of benefits as a vision – what the customer imagines. Anyone who buys fashion jewelry wants to make a positive statement. They want a look that is flattering and appropriate. So, much like a radio ad for a car, features describe details like length, color, texture, and shape, while benefits say “matches clothing and complements your complexion.” “draws attention to your slim neck” or “creates a youthful appearance.” That’s right. “The old adage to sell the sizzle, not the steak, gets to the point. Pick the right item for the customer, be honest, and sell the sizzle.
Will all of this work in a slowing economy? Absolutely! In troubling times, women appreciate a safety valve from some small new purchase. What accomplishes this better than fashion jewelry? Apply the five shortcuts and lift your customers’ spirits with a pleasant experience.
