All, My thoughts of why people buy what they buy. Concernig lurury
items. Jewelry is a luxury item.
Whenever an item is being evaluated for purchase numerous factors
come into play. These factors are impulse, selling price, and the
buyers percieved value of the object.
Impulse is what first brings one to look at an object. Simple
impulse is: I will buy the object no matter what it costs because I
like the object. More complex impulse happens when a buyer is looking
for a specific item or an item which will fulfil a specific set of
variables. Simple impulse is what normally occurs in purchases of
inexpensive jewelry. Complex impulse is what occurs in the purchase
of expensive jewelry.
Selling price determines the kind of impulse buying. Many purchases
end when the buyer finds out the selling price of the object. Yes,
feathers and sea shells may be an artistic expression of great
design, but are they worth $300? $3,000? At the same time a piece
of well made jewelry made of 10K gold, SI2 diamonds, and a poor
clarity, but highly colored gemstone; may trigger the impulse buy
when the selling price is much less than the same object constructed
of higher quality materials. The artist can utilize this marketing to
get the same pay for thier design and exectution, but less total
money for the actual materials utilized. You cannot sell 10K gold
for 18K, SI2 diamonds for VVS, or a poor gemstone for the same price
as a high clarity and deeply colored gemstone. You can try, but you
will be very shortly discovered and your business will suffer.
Percieved value figures into the equation whenever luxury items are
sold. Understanding percieved value is very complex. In my business
I have spent many hours trying to figure out how to better market my
items. Percieved value plays an enormous part of this equation. We
do not target any one area of human beings. Every one that
approaches us is treated like they are the most impotant person at
that moment. We sell our gemstones and jewelry because the customer
percieves that the product is what we say it is in physical
description and in actual components. When customers check out the
jewelry at either appraisers or other stores they quickly find out
we are trying our best to be truthful. That is what brings customers
back. This is just my analysis in very short form of the complexity
of the sales of luxury items.
Gerry Galarneau, in sunny and hot (105 F today) Phoenix, Arizona,
USA, where my stock of finished products is the lowest it has ever
been and I am working hard to recover from a very brisk sales season.