The jewellry business, though a very lucrative one is not child’s play. One needs adequate skill in order to know the in and outs of the business.
However, it is not so difficult to begin making profit once you start a jewellry but to make maximum profit, do not just jump into it. LEARN!
Below are some tips to know before starting this business.
1. Buy a Gold Testing Kit and Other Essential Tools
The gold testing kit is a combination of acids that will enable you to identify authentic gold metals and how much of it is used in a particular jewellery item. You will also need some other tools for picking really small pieces of gold or diamond, and a measuring scale is also very important.
2. Learn the art of bargaining
To begin this trade, you have to sharpen your sales skills, because nerve racking bargaining is involved in order to yield maximum profit. It is usually bought at a lower/bulk price and sold to customers at a higher price, so the better you are at bargaining, the more you will earn.
3. Always Be Aware of the Latest Price
The price of gold fluctuates easily, so every now and then you should check on it to see the latest prices. If you do not do so, you might be selling at a loss or buying at a higher rate when it is supposed to be cheap at the time. You can always find the present value of gold online or from other gold vendors around you that you trust.
4. Buy Showcases
You are not expected to stock the shop full of expensive stones like it is some kind of boutique. Do not make that mistake. If you try to do that, you will find that you will not have enough money to start the business.
For starters it is best to have simple showcases for your jewellries, made of wood and wrapped in black cloth material and covered with glass. The jewelries are laid in the glass showcases and nobody knows.
You will need to carry a carpenter to the shop and show him where you need them so that he can take dimensions. You will need at least three of those a meter long each.
5. Make sure you buy from the right places
You can buy your jewellery from other Jewelry stores at a wholesale price if that is the only option you have. Another option is buying from overseas where you will need a contact of a gold merchant who travels overseas often to buy his gold.
He/she takes your order and multiple others extracting his commission when the goods are delivered, because it is cheaper in places like Dubai.
Buying from the general public is also a good revenue earner in the business. People would come trying to sell their precious stone jewelries desperately perhaps due to a death in the family, debt or just to raise some money for something they had in mind.
The point is it is always at a giveaway price, you should always be ready to jump at those opportunities by putting away some cash for this specific purpose. But you must ensure that the person presents you with a receipt to confirm it is not stolen property.