Six reasons we are not making money selling jewelry

making money selling jewelry

How many of you (jewelry makers & sellers) have had great success selling jewelry this year? I do understand that success is very subjective term – so lets say success means good profits. From what I have been hearing in jewelry circles, friends, forums – both locally and internationally and going through my own accounts I can safely say that currently not many sellers are making great profits; some people are just breaking even, some haven’t sold anything this summer.

 This calls to question, reasons, why we aren’t making as much MONEY as we would like to make

This article in a funny, slightly sarcastic style attempts to take a hard look at the factors affecting jewelry sales and why we are not making as much money as we would like to make and if possible, how to rectify it. Read on!

Six reasons we aren't making money selling jewelry and how to change it
Six reasons we aren’t making money selling jewelry and how to change it

#1: Economy – Ya ya money is tight, but economy today isnt very different from how it was 6 months back or 1 year back. Maybe, people spend more in the festive season rather than in the summer months, but does that mean that designers should scrap their summer lines and work only towards the festive season? No, we find other ways to make it work. We could run courses and teach people. We study the seasons and understand what they are are looking for in that period – Most people are vacationing in summer and are looking to buy Souvenirs, can you perhaps capture that market?

#2: Competition – too many cooks!!
Haven’t we all heard of the term, too many cooks, spoil the broth. It works well for the jewelry scene too. I remember a time when there were hardly 1-2 people in a city (in India) making good Designer costume jewelry. But now you can find one in every street. Also with the advent of Social media marketing using Facebook and instagram, Coat-Tailing happens all the time, where designers simply copy one another as soon as a style becomes a trend, thereby sending the Fashion cycle (that kept us sane all these years) for a toss. Teaching jewelry making which used to be a lucrative business a couple of years back is also on the decline due to too many folks teaching without really having any mastery over the craft. So what to do? Refer Point Three – Innovate!!

how to make innovative jewelry

#3 Lack of Innovation
3.1: Wrong products
Fashion is cyclical, meaning that what goes out of fashion today comes back once again. But that doesn’t mean that you keep selling the same product till it comes back in trend. Learn to read and understand forecasts and Keep up with the trends. Learn to separate personal likes and dislikes from your vision for the brand. If you design only based on what you like, you’ll be the only person wearing them. Understand what your clientele wants and design based on their requirements in your style. Make sure that your products are upto the mark and that the customers get a wee bit more than what they pay for. There is simply no excuse for having a bad or undesirable product.
3.2: Same old, Same old!
Yes, its good to have a unique selling proposition (USP) for your brand but it doesnt mean that you sell the same products, designs and concepts over and over again.People buy fashion products not based on needs, but wants, so boring old last season’s products drives them away. the way to create interest in your products is to constantly Innovate, make something new, original, that people cannot find elsewhere. They will come to you and buy from you. Do remember that new and unique doesn’t mean strange or weird, it still has to be desirable to your audience

how to price your jewelry

#4: Not Pricing it right
By Pricing a piece low, you can bring in a sale but it will hurt your chances in the long term. It is very difficult to reset your prices particularly when dealing with regular customers who will compare what you charged ‘last year’ or  ‘two years back’ for that gorgeous piece they bough to what you charge now for a simpler design. You cannot antagonise them by arguing about branding, design, competition or inflation as they are the backbone of your business. However you must raise your prices slowly, yet steadily to make a profit. Therein lies your challenge.

#5  Wrong target market
Have you paused to consider who is your target market? Does it comprises of young stay at home moms in the age group of 25-35 or does it cater to teenagers? Is a corporate go-getter your ideal client or are you looking for potential brides to buy your jewelry? Everyone loves to design for the 18-24 segment as they are the most experimental in nature, but can they spend as much as 30 yr olds who have strong careers with good salaries? If you are stuck in this rut of not knowing who your clientele is, think again.Who said 50+ women don’t experiment? I can proudly say that a majority of my clients belong to the 40-65 age group. These are strong, gorgeous women who know what they want and don’t need permission or approval to look the way they want to. So pause for a moment and think, Who is your client?

how to sell your jewelry

#6 Last but not the least -You are not selling them! Duh!!
If you only create products and store them away safely in your cupboards, you simply will not make money. I am guilty of making this mistake as selling is not my forte. But to make money we need to sell and sell hard. Let friends and family know that you sell your designs. Keep your social media pages updated. I often get mails from readers of this blog on how to sell  jewelry and where and how do I sell. There is no secret recipe my friends, I sell wherever possible, whenever possible. I have sold at trunk shows, jewelry parties, during festivals and family gatherings, at work, online, fairs and exhibitions. Sometimes I sell as lot and at other times I don’t. One simple trick I follow on social media is to write “For sale” as a caption on every piece that I have for sale. It removes ambiguity around the availability of the product and helps me sell more.

These are some of the reasons I can think of, why we are not making enough money selling jewelry. Can you think of any more reasons? If so share them in the comments, along with your solutions to them.
I hope you find it interesting
Cheers

  1. bairozan avatar

    Obviously, we need a strategy based on your highlights. Underestimating yourself (or comparing to others) is another reason – private, not objective, but it exists. Recently, I went to a local handmade show and most of the exhibits were really good. And I thought "I'm not ready yet". On the other hand, I know some of my pieces are very good but still am hesitant to start selling. I have to start with motivation, I guess 🙂 And present our pieces with more confidence. Or is this a bit off the subject? Oh, and I think we should offer minor repairs – most jewelry selling places do not want to replace a clasp or anything that easy, because it's cheap.

  2. Divya N avatar

    No Rozantia, you are right on target. We just cannot sell if we keep thinking that "it is not good enough"; if the customer thinks that it is good, it is good enough. This is the reason why resellers make more money than the designers who make the pieces. In my opinion money is the biggest motivator. If you sell me, you make more money to buy the things that you want and not just need. But I find repairs cumbersome. It ends up with the customer bringing you only stuff for repair while buying nothing new and you end up spending a lot of time of repairs, which gets more expensive as you can charge then only for the new material used (which is a pittance) and not your time.

  3. Vijay Devarajan avatar

    Hi Divya, there are few more factors that influence sales 1) Are you creating something which the customer wanted for or are you creating something which you like !. Though it is a hard fact now days the trend seem to be from customers perspective is "Can you make what i want". If you go to a car dealer the first thing we ask is what are the extra things that you would give along with the product. Product marketing has become important element whether we are marketing diamonds or car or Banking industry. Some of the thoughts
    The first thing that needs to be understood is " what are the trends or types of jewels that women tend to go for ?" also you can focus on targeting a particular segment of customer, like College students, Office goers, House wives. Segment your sales collection and provide large bright images of the collection
    The second key thing for having increased sales is brand value creation, how do we get people to tell or talk about jewels of sayuri, you have a blog, why not move into website model. There are many ventures that are running successfully on website model basis. You can create your website at Go Daddy.com. Once this is successful you can start to next stage ie the creating App model. The other thing that can be done is brand re call factor, today scenario when we tell jewel, immediately we think of GRT, Kalyan etc. So how do we have the brand re call factor, few options you can explore for brand re call is
    a) Have stalls during key events, provide simple demo jewels ( not so costly) free to people. Explore the possibility of having stalls during carnatic music season, people do use jewelry during the season. Create pcoket books from recyclable material and distribute during the season.
    The third key element always there should be a PULL element built in the jewelry making process, meaning always go with the market trend and put yourself in customer shoes, what will make you buy this?
    Hope these few things would help for short run, you write to me on my mail, happy to help and discuss branding and sales.

  4. Handmade Cards by Archana avatar

    Divya …I´m a regular reader of your blog. I really liked this post of yours.You make so lovely pieces. I´m a card maker and not so much in to making jewelry..though I have made few pieces for myself. When I used to live in India ..I was working as a Diamond jewelry designer in SEEPZ, Mumbai….but that is all history now.
    Hugs Archana

  5. Divya N avatar

    very nice to hear from you Archana, maybe you could share your diamond jewelry knowledge with all of us here, sometime

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