The retail jewellery industry has changed radically in recent years and the traditional ‘bricks and mortar’ institutions are finding it more difficult to compete with an ever growing online competition. No wonder then that a few of these have been trading on both platforms, shop-front and online, because they found they are missing a significant slice of a growing marketplace. This scenario does not benefit the consumer from a cost point of view since you still have to pay the same online as if you purchase it from the store floor. You will not save anything by simply purchasing from these merchants online if you do not buy from an online-only dealer.
- Exterior and interior store fittings
Jewellery retailers outdo each other by creating crystal and marble palaces to impress their clientele. It is a well understood notion that they like to show themselves in the best light and would like to expand the luxury of the produce through the picture that they are trying to create. This massive expense needs to be covered by somebody, namely you, the customer.
- Exorbitant lease needs to be compensated for prime positions
Of course virtual try on jewellery software need to be viewed and unless they have the building they need to pay for the ideal location. This might be in a specific road renown for high end stores or a shopping mall where a steady flow of potential clients is guaranteed. This price makes up another piece to the mark-up.
- Staff levels have to be high
Retailers want to make sure that no fish slips through the web. As you enter the store you get lulled into the sensation of actually being a buddy. Sales techniques begin now! You are lured with the assistance of a little competition to give away your personal details so you can enjoy the support of really being reminded when your spouse’s birthday is, or your anniversary or what thing he or she has been looking at the last time they came to the store. That is all fantastic, but someone has to pay for the upkeep of the service, and it is not the store owner, it is you, the customer.
- Stock levels have to be high all the time
If you do not enjoy a particular item you want to get shown alternatives. To keep a high level of inventory for a merchant is one of the biggest expenditure items and of course these prices are rolled into the final retail cost, which you as a customer need to pay for. For some retailers there is no limit to how much they believe they should spend to be one step ahead of their competitors. Photo shoots, models, location, TV, radio, magazines, billboards and characters, you name it, no press is left out in a frenzy to be seen or heard. Again, this is another factor, which needs to be added to the final cost.