How Jewelry Buying Has Changed!
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For as long as most of us can remember, the prospect of buying jewelry could be a daunting experience. Visiting the jewelers shop brought about a feeling of being at a disadvantage ” there stood the expert jeweler in the midst of all of the fine and expensive products and only he (or she!) knew the facts and figures that enabled a true value to be placed on his products. Information was handed down to the buyer as deemed necessary by the jeweler and the atmosphere was one of privilege ” in other words, you the customer were privileged to have his time granted to you so that you could be guided towards the suggested purchase.
Not only did the jeweler own the keys to the knowledge that enabled a value for money judgment to be made, he was also the sole source of the supply of jewelry. Obviously there was at least the element of competition between jewelry stores, but this competition was focused more on the ambience in the store and the uniqueness of the products made available rather than competition on the basis of price alone. Profit margins in excess of 50% of the retail price were not uncommon ” some reaching as high as 75%. Achieving any sort of price reduction was virtually impossible for the regular customer to negotiate.
But then a change in the market took place ” a change that has affected many industries and businesses and one that generates more changes almost each day. The Internet. Within a very short space of time, competition expanded dramatically. Internet businesses had lower costs, so they could afford to charge less for their products. Even more alarming for the jeweler, all of a sudden they enabled the customer to carry out some quiet and thorough research before committing to any purchase or before he was subjected to any sort of sales pitch.
All of a sudden, customers were not quite so easy to control! Many of them now came into the jewelers store already informed about technical aspects such as carat weights, diamond colors and independent appraisals. They demanded shorter delivery times and lower prices and would compare these with other Mall and online stores to make sure they got the best deal.
The traditional jeweler was faced with an enormous change. His preferred way of doing business was as it had always been – greeting the customer as he or she came through the door, providing guidance and encouragement while steering them towards the highly profitable pieces of jewelry on display.
This new online breed of jewelers turned the traditional jewelry business on its head because they were much more customer focused. Not only were they happy to match the products they offered to the customer’s requirement but also to supply as much information as the customer needed to make a decision. They were willing to use this strategy to attract business in what after all was a new way of selling to the public. It was also much easier for them to compete on price because of their lower overheads.
Market competition due to the development and advancement of the Internet has met the customers needs. The jewelry buyer is much more informed and so able to demand a better deal because of this way of doing business.
Tags: costume jewelry, expensive jewelry, Fashion, fashion jewelry, Gift Ideas, jewelry, online buying, online jewelry, retail