Increase In Gold Prices And Poor Economic Conditions Causes Jewelry To Sell At Low Prices

Jan. 1, 2009 - PRLog -- West Lafayette, IN - The increasing cost of gold combined with poor economic conditions poses a challenge for jewelers. Many are finding the cost of purchasing gold jewelry for inventory going up at a time when consumers are reluctant to spend on discretionary items. This has been necessitating jewelers to sell product at lower prices and profit margins. The reduction in profit is causing many long-standing retail jewelers to go out of business. However, some jewelers are finding they can survive by reducing the cost of doing business, buying smart, and offering excellent customer service.  

“The key to surviving the current economic downturn” says Cindi Light, owner of the online jewelry store www.jewelsbythelighthouse.com, “is to understand what styles of jewelry are currently in fashion, and to search out high-quality examples, while buying at the lowest prices possible. This can take a lot of time – probably seventy-five percent of the work day.” Overhead costs are also a major factor says Light: “Trying to maintain a brick-and-mortar retail establishment is exceedingly difficult as virtually all profits can be eaten up by space rental, utilities, and such. In order to turn over inventory, retail prices need to be kept as low as possible, which is hard to do when you wrap overhead costs and paychecks into the mark-up. So to keep prices down jewelers have to run lean. We have been able to survive and grow by keeping our retail presence online only, and operating from a home office”. Customer service is another large piece of the puzzle. Cindi says: “Bending over backward for the customer is what makes the sale and keeps them coming back. Jewelers need to provide quick replies to inquiries, and ship out product immediately. If the customer wants something custom, or out of the ordinary, its in the jewelers best interest to take the time to find it for them. The customer remembers who helped them out”.

# # #

Jewelsbythelighthouse.com is a family owned business located in West Lafayette, Indiana. Operating since 2003, the company was started by jewelry enthusiast Cindi Light, an expert in identifying jewelry trends and locating high-quality jewelry at low cost. The company provides a wide array of gold, diamond, and gemstone jewelry for men, women, and children. Specialty includes personalized customer service. For more information go to: www.jewelsbythelighthouse.com.