The BIG Boys don't want you to know.The # 2 trade secret that jewelry stores don't want you to know is that their average retail mark-up is 100% and Higher. Actually, this information is available if you dig through SEC filing for public jewelry companies.
Why is mark-up so high on jewelry?
The main reason is that there are lots of costs associated in selling jewelry. For example, each store has to pay rent, pay commissions, pay its sales staff, pay for advertising, and hold its own inventory. And because most jewelry retailers do not sell in high volume, their profit must be high for each item in order to stay in business.
Another reason some jewelry retailers mark-up price so high is that they believe a higher price tag increases its perceived value.
How can jewelry stores that have 50% discounts still stay in business?
Have you ever seen small silver trinkets at jewelry stores selling for over $100? The mark-up can be as high as a few hundred percent. But a high price tag at a jewelry store does not necessarily reflect its true value. Have you ever noticed that some stores always have a 40% sale sign especially around Holidays?
You should watch out for these stores because they always inflate price and give you a big discount so you feel like you are getting a great deal.
So how do you find a good price? The best thing to do is comparison shop on internet. After comparison-shopping at least 3 internet jewelers, you will get a good idea of lowest price you can find. Even if you don't feel comfortable buying jewelry on internet, you can use price to negotiate a better price at jewelry store. Almost all Brick and Mortar jewelry stores are negotiable on price. Remember, most retailers mark-up their jewelry at minimum 100%, so if you are ready to purchase, they will definitely negotiate on price to make sale. Just tell them price that you found for exact same item on internet. You will probably not be able to get as low of a price as internet, but if you want peace of mind touching jewelry and talking to a sales person, higher price may be worth it.