Owning a jewelry store comes with unique opportunities and challenges.
Some challenges come from new technologies. As online retailers become more popular, brick-and-mortar stores have to work even harder to set themselves apart from the competition. Other challenges come from new trends and shifting demand for jewelry items. As styles change, jewelry store owners need to stay current to keep customers interested.
For your business to succeed, you need to overcome the challenges of selling jewelry. By designing a strategy to address these obstacles, you can take your business to the next level. In this blog, we identify the hardest challenges of selling jewelry and offer five practical tips to help.
Let’s get started.
One of the most difficult tasks for any retail business owner is knowing how much inventory to order. Not ordering enough inventory leads to stockouts and missed sales, while ordering too much leads to overstock — which fills your shelves and decreases turnover.
Tip: Offer discounts for slow-moving inventory.
Nick Gurney, general manager of Jewel360, addresses this issue. He says, “One of the most detrimental things to a jewelry business is sitting on jewelry for far too long. Items you purchase to sell need to be bought to move, and when they are sitting in your store for too long they become stale, customers get bored by your inventory, and they become a liability to your business instead of an asset. You should be aggressively discounting your aged inventory.”
Make the most of overstocked inventory by offering discounts, buy one, get one (BOGO) deals, and limited-time offers. Customers are much more likely to buy when they feel they’re getting a great deal — and clearing space on your shelves makes room for new inventory that sells quicker.
Related Read: 8 Tips To Manage Jewelry Inventory
As online shopping becomes more prominent, large online jewelry retailers gain more and more customers. Trying to compete with large businesses may seem overwhelming, but with a well-thought-out strategy and the right tools, you can persuade your customers to choose your in-person store.
Tip: Emphasize your store’s unique value proposition.
To effectively compete with other jewelry stores, communicate to your customers what makes your business stand out. It might be rare product offerings, years of experience, personalized recommendations, or services like jewelry repair or customization. Advertise these unique offerings in store and on social media to keep customers coming to you over a competitor.
If you want to compete with online retailers, you can launch an online jewelry store of your own. Engaging in e-commerce allows you to serve more customers and increases your potential sales. With the right e-commerce tools, you can begin selling jewelry to online customers in no time. Modern point of sale (POS) systems often include e-commerce tools, in addition to other features designed to help you run your physical store.
When business owners overpromise to their customers, they end up disappointed. Setting realistic expectations with them is a more effective strategy. This applies to all aspects of jewelry sales, from repair turnaround times and store hours, to customer service availability and limited-time stock arrivals.
Tip: Be honest and clear in your communications with customers.
This principle also applies to those who invest in jewelry.
Gurney says, “Many consumers believe in diamonds as investments, which they absolutely can be! But all too often, I hear stories of customers returning to sell their diamond back to a retailer, and being very disappointed in the amount offered. Stores are there to make a margin, and your customers need to understand that if they plan on making money on their diamond investment. This is especially true with lab-grown diamonds and their volatile price changes.”
Customer loyalty is built on trust — both in the jewelry you offer and your expertise as a jeweler. It’s important to be clear with your customers about your products, how their value may change over time, and the services you offer to build trust with your customers, which keeps them coming back to your jewelry store.
Related Reads: Jewelry Customer Management: 10 Tips & Tools
As technology quickly advances, it’s easy to feel left behind as a business owner. It can be difficult to use new technology when you’re comfortable with what you currently have.
Tip: Find practical ways to implement new technologies in your business.
Not every new technology is a good fit for your business, but it’s important to be aware of developments in digital tools for jewelry retail. Take advantage of new resources when you can.
A few modern developments that benefit jewelry stores include:
Augmented reality shows a customer what a necklace, bracelet, or ring can look like on them — even if they’re browsing your online catalog. CRM software lets you engage in targeted marketing by storing customer information. With this data, you can send texts and emails with offers personalized to specific customers. Social media tools help you quickly create content to get the word out about your online jewelry store.
Although learning how to use technology takes effort, finding the right ways to implement it helps you connect with more customers.
Related Read: Jewelry Store Automation: 9 Ways It Helps Mange Your Store
For your customers, a visit to a jewelry store is about more than the purchase. The quality of the customer service you offer strongly influences whether they ultimately buy a jewelry item or not.
Tip: Offer personalized and professional service to create a memorable customer experience.
Especially as online sales increase in popularity, emphasizing a personalized in-store experience sets your jewelry business apart from the competition.
Gurney says, “Jewelry is an emotional purchase, and your store needs to cater to that. Some retailers focus on offering the best price, which is a strategy as well. In my opinion, your effort is better spent making sure a customer feels special and heard in your store. Most customers who find a jeweler they love will continue to visit their entire lives, so it’s worth nailing the experience for all who walk in your door.”
Ask customers plenty of questions about what they’re looking for, so you can make the appropriate recommendation for them. Communicate the information they need about the item, answer their questions, and take them through multiple options if necessary. Going above and beyond for your customers builds loyalty and encourages repeat purchases.
Related Read: 7 Easy Ways To Offer Exceptional Jewelry Store Customer Service
Every retail business has its challenges. As the owner of a jewelry store, it’s important to make a plan to address these challenges, so you can push through roadblocks.
Whether it’s managing your inventory, setting yourself apart from competitors, or incorporating technology, remember these tips as you work to overcome the challenges of selling jewelry.
The right tools help you grow your business and deal with problems as they come up. Jewel360 is an all-in-one POS system that’s equipped with features to make running your business easier. With payment processing, inventory management, and e-commerce tools, as well as jewelry-specific features like access to suppliers and repair modules, you have everything you need to manage your store.
To see what Jewel360 can do for your store, schedule a demo today!