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The Gold Hike!
November 13, 2007

So, I’ve read a bunch of articles that pertain to how the increase in metal prices will hurt holiday jewelry sales…but do customers really understand the metal market?

 

Today gold was down from last week (when it was around 840 or so) and I’m still seeing customer’s coming in looking at gold earrings, bracelets, anklets, and so forth. If they perceive value they don’t mind spending the money for it.

 

At my store in Charlotte I have not felt the gold hike (except when I’m buying of course) but my folks store in FL is feeling it pretty badly because there the retailers sell gold by weight. Customers are always comparing the price per gram. We tried to move away from that by pricing gold jewelry by piece but soon learned we weren’t selling as much as when we sold pieces per gram.

 

Some are feeling the pinch while others are not—do you plan to buy more gold for the season? Do you feel your customer’s understand the metal market?


Posted by Shanu Singh Guliani on November 13, 2007 | Comments (3)


November 14, 2007
In response to: The Gold Hike!
Christopher commented:

I believe most customers do not understand. Repairs is the hardest thing for me, as I tell a customer looking to replace her lobster clasp it will be $60, and she was expecting it to be $20. I always acknowledge that gold prices have reached incredible heights, however people seem weary. I also have a lot of customers looking to sell old gold, or complaining about how they should have kept old gold. The prices are definately affecting my buying habits, in these times you must buy smart. That's the key to success.




November 14, 2007
In response to: The Gold Hike!
PETER NESTLER commented:

SELLING GOLD BY THE GRAM...............MIGHT AS WELL OWN A PRODUCE MARKET AND SELL POTATOS! YOUR PIECES SHOULD BE DISTINCTIVE ENOUGH THAT WEIGHT IS A NON FACTOR!




November 17, 2007
In response to: The Gold Hike!
marc cohen commented:

I have frequented your Florida location, and yes, your store has a challange. When you surround yourself with competitors who place items on the scale and promise the customer the best deal around, whatelse can you expect your customer to say other than "how much are you charging per gram?" Jewelery should not be sold as a commodity...We don't buy clothing, paintings, autos,computers by the pound. We don't walk in a restaurant and ask how much a pound we are being charged for a piece of cooked salmon! Unfortunately, your customers are being trained by your competitors who have resorted to this method of selling because its the only way they know how to keep a customer. Develop a strategy,that allows you to stick to your selling principles.The strategy should also have an option that might have you consider moving from that shark infested environment. Marc Cohen





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