"The price is the price", the sales clerk states.
How many times have you heard that?
As for me, I don't like that phrase!
Allow me to explain why.....
Every product you buy has a markup - the catch is the percentage of the markup.
Let's look at jewelry. .925 Sterling Silver and gold (10k, 14k, etc) has a price per ounce that fluctuates daily. Some days the rise or fall is small and other days it can be quite large. Small can be pennies and large can be enough to blow a budget.
Guess what - .925 Sterling Silver is .925 Sterling Silver no matter where you buy it provided it bears the .925 stamp. The same holds true for gold no matter if it is 10k or 14k, etc.
Have you ever asked yourself how an online jewelry store selling sterling silver or gold has such a lower priced product than a retail store front?
Not considering stones or settings the answer lies in markup. You see, retailers with a store front have bills to pay - think about rent going for a few hundred dollars a square foot.
To offset the cost they often times operate on a very high markup percentage.
How high is high you ask? A 300% markup is close to average for a store front but I've seen some run as high as 600%.
Here's a little math:
Two stores sell the exact same .925 Sterling Silver tennis bracelet. Both bracelets have 15 clear CZ stones (karat weight isn't a factor) and the same wholesaler was used.
Store A (store front) Store B (online store)
Wholesale cost: $ 250.00 $250.00
Markup (300%) 750.00 Markup (100%) 250.00
Total: $1000.00 $500.00
The difference between the two is $500.00 for the exact same bracelet. Recall that both have the .925 stamp and clear CZ stones.
I realize there are advantages to being able to hold a product because quality is important but as a consumer you should consider how important it is when it plays into the total cost of the item.
By doing a little bit of research whether it is online or in person you may have the opportunity to get the jewelry you want at a price you are willing to pay without blowing your budget.
We're here to help you...Make a statement without saying a word.