As the world recovers from the pandemic, inflation has become a growing concern for many businesses, including jewellery stores as you will have to pay more for your inventory, and consumers may be less willing to spend money on luxury items like jewellery.
However, there are ways for jewellery stores to prepare themselves for inflation and still have a successful summer season.
Manage Inventory Efficiently
Many of our clients have prepared themselves for inflation by managing their inventory efficiently. This means tracking sales trends, forecasting demand, and ordering inventory accordingly.
By having a clear understanding of their inventory needs, jewellery stores can avoid overstocking, which can lead to excess inventory and lower profit margins.
Price Products Competitively
With the increase in the general level of prices for goods and services, it is essential to price our jewellery line in your showcases competitively. You can do this by keeping a close eye on your competitors and adjusting your prices accordingly. However, you should also ensure that your prices reflect the value of the products and services, and not just their cost.
Offer Financing Options
To make more jewellery more accessible to customers during times of inflation, some of our clients have reviewed their financing options offerings. To allow customers to spread the cost of their purchase over time, making it more affordable for them but balancing profitability and time.
Focus on Customer Service
Inflation can lead to increased price sensitivity among your customers, which means that as an experienced jeweller you need to focus on providing excellent customer service to retain your customers. This can include offering personalised recommendations, providing after-sales service, and building a strong relationship with customers.
Diversify Product Offering
You can prepare to manage inflation by diversifying your product offerings. This means offering a range of products at different price points to appeal to customers with different budgets. It is also the perfect time to consider introducing new product lines to attract new customers and increase sales. We cannot stress enough the importance of offering products that specifically fit the targeted season. Many jewellers unsuccessfully make the mistake of forcing inventory onto consumers at reduced prices which increase buyer remorse rather than the bottom line.
Read more about Fall 2023 Trends
Inflation can pose a significant challenge for jewellery stores, but with proper planning and execution, you can still have a successful summer season. By managing your inventory efficiently, pricing your products competitively, offering out of the box financing options, focusing on customer service, and diversifying your product offerings, so despite inflation you can continue to thrive in this very competitive market.