Insider Exchange

To Buy or Not to Buy: Big Name Jewelry Lines

After resisting for many years, I was again exploring whether or not to take on some more big name jewelry lines. I come from the background of a coin/pawnbroker/auctioneer and in general don’t like overpaying for anything. Yet, I see the huge billboards of my competitors who have lots of fancy name jewellery and watches.

I asked: Is a NAME brand important to make a sale? It is worth the extra cost/retail? What else do the name brands do for your bottom line?

The response was overwhelming! For this reason, I feel I should share a little of what I have learned: 1. If in a smaller town, smaller market, less competition – it seems easier to “brand” yourself and there is not as much of a need for big names. 2. If in a metropolitan area, recognition is harder and more expensive to get, so having brands helps you market. 3. Margins on big names is very low, and to make meaningful sales to those who want the “names” on their fingers requires a lot more marketing than I expected, as even designer jewelry has become a commodity due to the internet. 4. If a person is new in the business or is a retailer rather than a goldsmith, having big names helps business run. 5. Big investment, living by the rules of big companies, marketing requirements and our success being tied to someone else (i.e. beyond our control) leads me back to the beginning. I will do what we know, and leave the flashy stuff to those who really desire it. I think it easier to bend down and pick up the dollars than to catch them as they whirl around. Again, thanks to everyone who responded! This is really the 800lb gorilla that many of us deal with!
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