Friday, November 1, 2013
Wholesale Fashion Jewelry - 5 Shortcuts to Retail Success
Something in the human spirit is always itching for independence and this itch translates to a constant flow of new entrepreneurs that so often gravitate towards fashion jewelry. What is so irresistible about this accessory? Beyond the high profit margins that wholesale fashion jewelry can open for retailers lies an intrinsic beauty that creates truly wearable art. Yes, wholesale fashion jewelry offers plenty of profit potential that enables retailers to turn small investments into the longest mark-up in the fashion industry, but the magic of fashion jewelry's beauty stops consumers in their tracks and this magnetic attraction, more than anything else, brings the entrepreneur into retail sales specializing in jewelry.Many of these new fashion jewelry businesses begin on the simplest level with retailers buying wholesale fashion jewelry and presenting it to friends and co-workers. Easy sales and new found profits ignite a fire to grow the business, but what step comes next? As a twenty-five year veteran of the wholesale fashion jewelry industry, I have seen business after business start in this way and often grow to become the major supplier of fashion accessories in a community. The learning curve never ends as fashion jewelry evolves as well as retail tactics, but some things never change and these key techniques will have positive impact on your fashion jewelry business.But first, how are you going to sell your treasure of wholesale fashion jewelry? Outgoing personalities love the active sale. Visit businesses, do parties, set up in flea markets or craft shows, and bubble over with enthusiasm as you introduce stunning fashion jewelry to consumers. All they need is a crowd and permission to set up. Bingos, festivals, school picnics, car shows, sporting events-the list is endless. Overhead is low and actually stops when not engaged in sales activities. But so does sales, so many prefer brick and mortar businesses with a higher overhead, but continuing business even when you're not there.The quieter, methodical personality may not be up to this bubbling enthusiasm and choose a passive sales mode. Successful businesses often build without the entrepreneur ever engaged in active sales to the consumer. They connect with beauty shops and other locations to provide fashion jewelry on consignment with the owner profiting as well as the entrepreneur. Methodical personalities think out the details like how to handle shrinkage of missing items with no sales recorded. Increasing price and lowering consignment fees compensates for losses when fashion jewelry has open exposure that can result in more shrinkage. The flip side is reduced sales in secure environments like showcases or behind the counter, which reduce shrinkage, but unfortunately, also sales.Okay, both personalities have a selling method they are comfortable with and both can expand their business with online marketing by working on websites while their sales support them as the websites grow, climbing higher in the results of major search engines. But what about the 5 shortcuts to retail success? They boil down to pricing, selection, presentation, knowledge, and benefits.-First comes pricing the wholesale fashion jewelry. New entrepreneurs often feel shock waves as they see the wholesale cost compared to retail prices they paid as consumers. The first temptation is undercut all the competition. Stop there!-because fashion jewelry is cyclical and low prices generate low profits that don't carry retailers through the tough times. Do you want to spend all your earnings on restocking wholesale fashion jewelry and covering overhead? Of course not, you want to grow your business and make a profit and pricing is important.Retail uses a term called keystone-a nice word for doubling the wholesale price. Make keystone the minimum for mark-up in fashion jewelry and look for the items that give you room for far longer mark-ups. The upside has no rules. Let your intuition guide you because prices can always come down, but it is difficult to go up.-Next comes selection and this is a factor that major retailers like fine department stores are always struggling to get right. Stroll through one and you will see they have reduced staff on the floor so selection often has to sell itself. The fine department stores need "no miss" choices and have resources, forecasts, statistics, and trained buyers to make these decisions. Small retailers don't need to be discouraged because this isn't rocket science and you are closer to the clientele in your location than any major retailer.Making the perfect selection rests on the age and demographics of your main customer base. Add this to the fashion trends of the season and you are close to perfect. How do you keep up with all those rapid changing fashion trends? Well rapid change is a myth. Trends change very slowly-often over a decade. Yes, colors and subtle adjustments occur every season, but today we are in the midst of classic trends that started in the early 21st century and have a promising future. More on this when we cover knowledge.-Now for presentation-making the fashion jewelry look special. Ever notice how necklaces clumped together on a tee bar on top of a showcase seem to scream "I'm on sale" while the stuff in the showcase whispers "I'm special". That's presentation and how it has changed even for fine department stores.Teri Agins in The End of Fashion details how department stores that were once "the first visual contact with fashion" and "introduced merchandise concepts to customers" changed in the late 20th century to a collection of brands. Agins quotes one upscale shopper who "was appalled when she discovered $19.99 Nine West shoes displayed right next to $350 Chanels" in her favorite department store that was compromising its image of elite fashion. Make an item look special and it takes on the perception of higher value.-Next comes knowledge that is worth more than price. Don't believe it? Think of items you bought because the sales person impressed you with a deep understanding of the product. That was worth more than price. I personally experienced this lesson when I did a trade show with a colleague. I told my customers the fashion jewelry was a real value at the price. His sales person painted a word picture of the wholesale fashion jewelry with the season's apparel and wrote more orders without the customers even knowing the price.Knowledge is knowing the trends and knowing the item. Consumers trust a well-informed source and when you know what is today's style and why it looks right on the customer, you remove the burden of choice from the buyer.Knowledge today goes deeper because classic trends in fashion jewelry bring gemstone components, shell, Murano style glass, Millefiore, and more to jewelry designs. A story is worth volumes in explaining glass jewelry and knowledge of gemstones that removes the doubt about whether it is real. Don't be overwhelmed about understanding the trends and knowledge of today's components because everything is detailed in a report, Wholesale Fashion Jewelry-The Magic of Trends (find a link to the report at the foot of this article).-Finally there are benefits. Think of benefits as vision-what the customer envisions. Anyone that buys fashion jewelry wants to make a positive statement. They want a look that is flattering and appropriate. So like the car commercial running on the radio, features describe the details like length, color, texture, and shape while benefits say "matches apparel while complementing your complexion", "draws attention to your slender neck", or "creates a youthful look that is so you". The old adage of sell the sizzle, not the steak, gets to the point. Pick the right item for the customer, be sincere, and sell the sizzle.Will all this work in a slowing economy? Absolutely! In worrisome times women appreciate an escape valve of some small new purchase. What fulfills this better than fashion jewelry? Apply the five shortcuts and lift your customers' spirits with a feel-good experience.