October 4: If you’re a jeweler and you look at high-end jewelry designs, you don’t see what others see. You see a series of business problems. One of the biggest problems is simply finding gems. The range and scope of modern jewelry is amazing, especially in the retail environment.
Modern jewelry contains a particularly wide range of gemstone types and a full spectrum of colors unlike any other industry on Earth. This vast array of gems also includes a particularly challenging cost base for jewelers.
Many modern jewels are composed of several precious stones. This range may include some types of gems that are very hard to find from a supply perspective. This is where the cost basis comes in. Sourcing multiple types of gemstones for retail designs is an acquired taste.
Issues can include gemstone quantities, gemstone sizes, and naturally, a different price obstacle course, depending on the vendor. These are the issues that directly affect profits, cash flow and can directly impact the bottom line.
The wrong and the right way to get gems
Sourcing gemstones in a high volume retail environment can be quite a thankless task for jewelers. You can sell a lot of jewelry, but you can also find yourself in some pretty thankless situations with your fees.
Let’s start with the wrong way to source your gems:
- The absolute worst practice is to source gems directly from the traditional market at spot prices. Spot prices are prices for individual gems, purchased as needed. Inevitably, you will pay top dollar. Even good suppliers cannot sell you individual gems at wholesale market prices. You have to pay their markup on a smaller number of gems.
- The flip side of this unattractive situation is that this type of sourcing is incredibly inefficient. This can seriously interrupt the workflow. Why should you have to make a sudden mad rush for core gems like tourmaline or sapphires to fill a simple order, for example? Not to mention the aggravating process of managing order deadlines, work deadlines, etc.
- This method of supply is also a very good way to explode your cash flow. There is simply nothing good to say about this sloppy approach to procurement.
On the other hand, the best way to source gems is 100% systemic and much simpler:
- You need a good supplier with a really extensive range of gemstones. This range of gems should include all of your essential business needs.
- The supplier must offer solid discounts and very clear terms of sale. (Some vendors don’t. This is a particular risk when purchasing small quantities one-time.)
- The supplier must have verifiable business credentials as a regular source for your gemstones.
- The supplier must clearly demonstrate good technical knowledge.
- Delivery times shouldn’t be a problem.
As simple as it sounds, gemstone supply issues can occur on a worrying and regular basis. Merchants, especially e-merchants, need everything to function properly and be able to manage their orders efficiently. This is why you need to be extremely careful about where you source your gemstones from.
If you’re looking for help with interstate providers, RMC is there when you need us. A gigantic range of gemstones from around the world is truly unbeatable. We can help you with all kinds of jewelry acquisitions, including bulk buying, high-end gemstones, and more.
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