David Peters, Jewelers of America’s resident education and management expert, offers the following advice to help you properly price jewelry product:
- Shop Your Competition: Chances are you serve the same demographic, and you can gain insight from seeing what the competition is charging.
- Be Competitive With Popular or Easy-To-Find Items: Be extremely competitive on pricing when the product is popular or easy to shop elsewhere. Don’t give customers a reason to buy it from a competitor when it’s simple for them to do so.
- Consider Raising Prices on Hard-To-Find Items: If you’re offering something that’s unique that they can’t get down the road, price accordingly. Just be careful that these unique items fit your demographics, otherwise you’ll have a museum piece -- regardless of price.
- Understand What It Really Costs You: Analyze your true merchandise costs to include shipping and associated in-store labor expenses.
- Negotiate With Vendors: On a big sale where margins are tight, ask your vendor to reduce their price.