I am happy for those who have an increase in business from the
wealthy, but I wish that there was something left for the rest of
us.
This really made me think.
It wasn’t that long ago that I was having my share of difficulties,
on the ropes. Lately things have been good. Have I become an upmarket
snob? Well that was my first thought. But no, I’m only following the
money.
Where I had my troubles was when I was trying to cater to the blue
collar and similar. This town has a range of income levels. No doubt
most towns do. So it makes sense to go after the disposable income of
the ‘wealthy’.
I would suggest first, if your market is shrinking, to reassess
everything about your business and your market. Every town has its
movers and shakers. the commercial property owners, the lawyers
yadda yadda. Make inroads to that part of your town’s society. Does
it make sense to chase shrinking working class dollars? It might if
you can find the hook and there’s enough of them to make it work.
Does it make sense to shift gears a little and expose yourself more
to those with greater income? And how do you do that? Doesn’t
necessarily mean much higher price points, remember that even the
wealthy will buy that $50 sterling key ring.
I can tell you from bitter firsthand experience you cannot afford to
wring your hands and hope you’ll get by. You have to do something.
You need to develop a plan suited to your particular circumstances.
People stopped buying gold? How about making things that have more
value in the stones than in the metal? Smaller cost percentage from
gold means that piece is less sensitive to gold price fluctuations.
Competition getting stiff? How about doing what they don’t?
The independent jeweler more and more is becoming a niche business.
I would guess most of us here are already kinda nichey. So run with
that. Be special. And be good at it.
As for the first question on this thread, Beth, I’m still pretty
sanguine about it (I think I was the one who responded this way the
last time you asked). Frankly, I just look at people and ask them
what they’re paying for gasoline. Three years ago they weren’t paying
more than $1.50. Now they’re paying $3. If the price of gas has
doubled, the cost of a gold ring going up 25-35% isn’t such a big
deal (at least if you can get them to look at it that way). Is it
going to make it harder to sell stuff? Sure. But this is when you
separate the men from the boys (or women from girls). You have to add
value to your product somehow and if you keep pushing that aspect,
you’ll keep selling. I think in the long run, if gold stays up in
this range (which I think is highly unlikely as it is mostly
speculators running the prices up—and look at what happened to the
housing market where it was speculative buying), it’s actually going
to hurt (not help) the internet sellers. They are going to have to
raise their prices, but they don’t have the ability to offer more
personalized service. So there may be a silver lining in some of
this.
Lee, Look at
the people walking down a busy city street or walking through
the local shopping mall - you will see far fewer men and women
wearing -REAL- gold chains, or nice genuine gemstone rings, or
-REAL- gold or gemstone earrings.
I’m not sure where you’re looking, but I don’t see this happening at
all. Is there a lot of costume jewelry out there? Sure, but there has
always been. My repair customers who always had costume jewelry still
have it. My repair customers who own real stuff, still own real
stuff. I just had a little vacation in NYC and everyone (and I mean
everyone) had real jewelry on. In my town of Cambridge where the
women try to get me to make their big diamonds look smaller, they’re
still wearing jewelry (as much as they ever did at any rate). I think
your problem is in how you are marketing yourself. Are you trying to
bring in the wedding band/engagement ring business? This is much less
subject to the economy. Everyone still gets married and they still
need wedding bands. Is your jewelry distinctive? Is it different than
what everyone else offers? I think it may be time to reinvent
yourself if your business is dropping off that much.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
Perhaps I’ve got the wrong end of the stick but isn’t your town (Las
Vegas) full of high rollers with plenty of money to splash around? Or
is your store in the “burbs” where the ordinary folks like us live?
Or perhaps I’ve been watching too much telly?
Helen
UK
I tend to agree with most of what you are saying Lee…however in the
realm of new materials I must admit that ceramics don’t interest me,
nor does titanium, or composites that are flooding the market and
being touted as green alternatives…I make jewelry out of precious
metals, to afford them is its own creative process at this point,
and as such I have experienced a great deal of clients interested in
repairing their old, or heirloom pieces, or at least updating them
to pass on as opposed to the expense at present involved in acquiring
new items… After all jewelry is a luxury item, not a wardrobe
essential…those that can afford it don’t mind spending the money on
new pieces, whatever the market is, the middle class will spend what
they can afford, and the trend setters will wear what is given them
- as advertising swag…economics have almost no bearing on
customs…if a wedding is to take place the groom ( or one life
partner to be absolutely PC!) will spend what is required to have a
ring to present the bride, or partner- cost is immaterial, and their
consumer savvy is the dependent factor in the process of acquisition,
not that gold is x, so i’ll opt for a ceramic ring because if
Angelina Jolie wears one, it’s good enough for my intended… customs
in whatever the group one has membership dictate the options, not the
price- For example on television, I have heard that people believe it
is standard to spend or rather invest, the equivalent of three months
salsry on a ring or bridal set- that is absolutely advertising based
and the product of strategic marketing by distributors like Stuller,
DeBeers, etc to convince that same blue collar worker that after the
months of salary spent on paying ones taxes, it is acceptable and
LOGICAL, to fork over another portion f his/her hard-earned money on
some luxury item that doesn’t have to cost as much as it does at a
retail jeweler’s storefront…and there is where we, as independent
designer manufacturers have failed to promote ourselves and our
skills that are almost always superior to that of a die cast mass
produced object, and personalized to the worker’s tastes and
needs…I’m fairly certain that there is not one jeweler here that
would turn down a custom wedding job and refer the client to a
retail chain, or one’s local wal-mart to save money and that any of
us could in fact make a set of two rings, even with an engagement
ring included in the package that would cost that worker’s three
months of salary if that person came in to me and said I have x to
work with I would show create designs that accomodated his budget
given the current price of gold, or at least the cost of the metals
that I would be using when I purchased them ! Therin lies the reason
I don’t demand 30, 000 for a wedding set when the client only has 10
to spend…profitability is secondary to my offering a person that
wants me to create a one-off design because to me the craft is the
reason I like what I do, not that I must keep costs below 23% and
that profits are the end-all line in the sand…If that were the case
I’d be working as a designer for someone else 9-5 and salaried, not
where I want to be in life by a long-shot! Ars longa Vita brevis!
-RER
i have to agree with those who are saying that the high end is doing
well. my friend and I do alot of custom work. i also do shows and i
have to report that I have done more high end pieces and sold more
high end one of a kinds in the past few years then ever befor. lucky
i guess because middle america is looking the other way…unless of
course it is a wedding band or engagement ring. its funny, in one way
it is like giving myself a raise, people expect my custome work
prices to go up. my inventory is worth a whole lot more. thats good
news because the shows that i normaly do are WAY down.
as goldsmiths we think of metal as raw materials, you need some, you
buy it, manipulate it and get paid for your job, yes it is an
investment but how many of us really stocked up back when it was at
$250 an ounce…what were we thinking of changing professions?
Please keep me from putting on my tinfoil hat and getting up on the
roof and talking about a new world order…BUT, consider this.
Gustav wrote about the GOLD STANDARD. and that is what needs to be
addressed. The dollar used to be backed by gold, like all economys’
currency at one time. why, it gave currency something tangible to be
backed by. if you go back to the begining of the wold bank it really
began when Royal Familys placed large sums of Gold into a central
bank. they then wrote 4 times the amount of notes (paper currency)
then they actually had (gold) in the bank. this is how the Dutch
defeted the Spanish after the 80 years war…ok back on track, yes
this paper currency could be decreased or inflated…OK enough of
the “winged coin”
Now we are off of the GOLD STANDARD right? so what is money backed
buy? The promis of labor, gross national product, the stability of
government.yes all of the above…why not gold…because it is in a
limited supply. sweat and blood are not. why was gold down when the
EURO was being introduced…because some countries like Luxemborg
and Belgiun were selling off their gold reserves in anticipation of
the change over to the EURO…yes the EURO is not backed by gold
either.
how does this relate to me as a manipulator of gold. well the price
going up tells me that the goverments of the world are not as stable
as they would like to be. gold is still in limited supply, it is
still one of the most amazing materials the earth has to offer. now
I find myself competing with investors for my raw materials.
I have to go now…fed-x just delivered the ideal cut stone that
will go into the setting that i made from someones grandmoms
gold…yes it is still as the old men say " the ultimate
recycleable".
any one that would like to darn the tinfoil hat and talk off line
about the gold standard or world bank may contact me offline.wayne
werner baltimore md (home to dr. bob and the great seal petition or
1976…do your homework)