Welcome to the new “Normal” in the jewelry business. I have been buying loose color, diamonds and finished jewelry for 40 years. I have watched as greed has crept into the equation we know as the relationship between retailer and wholesaler. Years ago, this was known as selling to “Privates” and was not tolerated. If we found our a supplier was selling to privates we cut them off and spread the word. Now, as I am looking at their merchandise they have the audacity to tell me straight out, that they sell directly to the public (MY CUSTOMERS). 9 out of ten engagement customers who walk into my store either have a printout or a series of saved pages from online stores, many of them wholesalers operating under different names or just dealing direct with no apologies. In my opinion, the jewelry business as it was will be unrecognizable in ten years. If I match prices, I can only make $500 on a one carat sale that netted me $2500 not that long ago. Our only profit center is repair and new construction /custom. The vendors that I continue with will sign a contract with me or we will not do business. Here is a copy
Pugh’s Designer Jewelers (PDJ) desires to enter into a buying agreement (contract) with __________________for the purpose of resale of purchased items in our store and through our website. This relationship is potentially mutually beneficial to both parties. PDJ’s relies on selling the items for a significant profit margin which in turn gives PDJ the ability to pay overhead and to buy more goods, perpetuating the relationship.
PDJ requires that _____________________ does their part to protect our profit margin. Furthermore, if _______________________ or their agents, sells directly to the public in any venue, be it brick and mortar, internet website, or mail order, this will constitute a breach of contract. If this is proven to be the case, ____________________ agrees to accept all remaining unsold merchandise to be returned by PDJ.
________________ will pay the wholesale cost that was paid for the returned merchandise at the time of original purchase, within 15 days. In addition, ________________ will pay $5000 in damages to PDJ, also within 15 days.
Kevin L. Pugh
Owner Pugh’s Designer Jewelers