Has anything changed?
There has been a discussion on Polygon (jewelers network) about has things really changed that much in jewelry industry over the last 10-20 years?:
“That said, lets look back 5 years, 10 years or even 20 years. My question to you, or anyone else for that matter, is this- are things THAT different today than they were in those previous time frames?”
My response:
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OMG! So much has changed. The person posting this does mostly custom design work and manufactures most of what’s in their showcase.
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Obvious: No more hand carving of waxes required
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20 years ago all diamonds were set by humans, now I’m told 40% of diamonds and much color are put in the wax and cast in place . I’m told with a casting destruction rate of 10% on just baguettes they make a profit in labor.
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Signature hand engravers has made the demand for hand engravers drop.
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Replacement quartz movemenst-the same. Less skill needed.
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Advertising. Newspaper has dropped by tons. As is magazine advertising. You can post all you want that it works for you but how many of you take a daily delivered to your door newspaper?
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Yellow pages-Dead.
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Radio. In Atlanta the number one radio station? PANDORA FREE RADIO. My brother tried said it didn’t work for him, he’s a big radio advertiser.
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Qualified bench jewelers. Young people not coming into trade. Jewelers are to cheap to pay a good wage.
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Margins: 20 years ago profit margins were almost hidden except from public except for diamond-Rap List. Today its like cars-look online, if jeweler won’t haggle, buy someplace else.
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Because of internet customers more likely your customer is better trained on diamonds and color than the sales staff standing in front of them in your store.
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Competition: Used to be down the street. Now its across the country.
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20 Years ago average age of groom was 24, now 28.
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Average diamond sale is larger, margins are less by easily 10-20 points.
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Vendors give less credit, more jewelers using credit cards as their “bank”. First quarter of 2016 Pandora sales were $247 million in USA. For a year probably about 1 billion in USA. Over 80% of their sales are on a credit card to JEWELERS.
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20 years ago a young couple went to 7 to 8 jewelry stores, checking stuff out and bought from a single jewelry store.
Today a couple goes to 15-17 websites and then visits 3 brick and motor stores and 80% so far buy from a brick and motar store.
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Security: Cameras in and outside of the store.
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Going back to jeweler, many don’t carve the wax, a machine carves it.
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Store margins: Lower than before.
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Advertising: harder to see what works. Spread yourself thin.
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Put out a sign and they will come. NOT!
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Expecting your children to take over when they can find a better job elsewhere. Besides they don’t work as hard as you, good or bad.
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Sell store? Going out of Business is best way today to cash out and inventory as an investment is no longer true.
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Point of sale programs. Better than ever.
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More and more your competition is a flat screen TV or cruise.
You decide if things haven’t changed that much in last 10-20 years.
David Geller