How Jewelry Buying Has Changed!
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.
Knowledge is power and the customer was no longer at a disadvantage when he entered a jewelry shop. Many could now ask pertinent questions about “technical” data such as diamond colors, carat weight and independent appraisals. Not only that, they were now in a position to negotiate lower prices and shorter delivery times because they were able to make comparisons in order to get 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.
These online jewelers turned the traditional jewelry business on its head. Much more customer focused, the new online stores were prepared to offer customer the information he needed to make a decision as well as matching products to the customer’s needs. They used this approach to attract customers to this new way of doing business. Because of their lower overheads they were also able to compete on prices offering customers a good deal.
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: Fashion