Buying For Your Permanent Jewelry Business
Our most frequently asked question is: How much chain should I buy for my permanent jewelry business? I wish I had the perfect answer but unfortunately it does not exist. You have to consider a lot of factors as a business owner, such as where your business is located, how many pop-ups you do, do you have a brick and mortar, are you selling non-permanent jewelry, etc. You also have to consider the budget you have available and the type of chain you need. Trying to determine the perfect number can be overwhelming, as you don't want too much inventory or too little overhead. To help you figure out the perfect buying strategy for your business, I wanted to share some tips & tricks! Read below:
BUYING FOR MY PERMANENT JEWELRY BUSINESS:
If I were starting my permanent jewelry business over, I would buy 5 different styles of chains in 7 feet each, and each of those chains in gold-filled and sterling silver. I came to 7 feet because it would be approximately 12 bracelets. Although anklets and necklaces change that number, the 7 feet will allow you to see if you like working with the chain or if your customers like it. It is not required that you use it if you don't like to work with it or your customers dislike it. As chain does not expire, you have the flexibility of holding on to that unused chain and using it for another purpose.
If ordering 7 feet seems like an expense you can't justify without knowing how you will like it, many jewelry wholesale companies offer samples. For example, our customers are able to purchase chain by the foot at Essbe Jewelry Supply. This gives you the option of trying out the chain on yourself or displaying it for sale. Buying a foot of chain allows you to not have to worry about having that overhead if you are unsure about it. The downside to purchasing samples is you leave yourself open to the possibility that the chain might be out of stock if you decide you like it & want to purchase more.
INVENTORY:
There is no doubt that this is one of the least enjoyable aspects of owning a business. Checking your inventory is more than just your chain and charms. It includes clasps, jump rings, packaging supplies, finances, etc. It's a monthly check-in where you compare your system with what you actually have in stock.
The benefits of doing inventory include:
• It gives you a clear idea of what you are selling. Using this information, you can adjust your inventory according to what products are popular and what products aren't selling.
• You'll be able to identify your slow seasons in order to reduce your purchases and your busy seasons in order to purchase more products before those busy periods.
• You can also use this to plan your marketing campaigns more efficiently, as well as budgeting and forecasting. Around Mother's Day, for example, birthstone charms might sell more because moms want to add their kids' birthstones to their jewelry. Tracking your inventory will allow you to see that trend.
Developing the proper tools for planning your busy times, marketing campaigns, and budgeting for your business year can be a powerful tool for buying for your business. These tools can help you identify potential opportunities for growth and to help maximize your profits. They can also assist you in setting realistic business goals and provide you with the resources to stay ahead of the competition.