The Gold Hike!
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?
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
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!
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.
