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What distinguishes jewelry businesses
that sparkle from those that fade
Starting a business is a risky venture. No matter how much enthusiasm and determination you may have, there is no
guarantee of success. In thirty years of business we have seen thousands of designers come and go. We have also
seen rising stars grow to become mainstay names in the jewelry industry. What distinguishes the successful jewelry
entrepreneur from those who do not make it? We have no crystal ball, but based on years of experience in the trade
we do have some secrets to share. Keep reading to learn about three of the chronic mistakes we have seen and some
of the techniques that are proven to work and make you money.
Pitfall #1 – Poor foundation
Many jewelry designers have a similar story. They started making jewelry for fun or gifts and were spotted by a friend
and commissioned to make a necklace. This led to a busy time of selling necklaces to friends and colleagues and even
strangers who liked a bracelet they were wearing while in line at the movies. You may be thinking to yourself that you
started out the same way and are destined for success because of your traffic stopping talent, right? The answer is yes…
and no. Yes, you do have talent; but, no it isn’t enough. Countless talented artists fail to establish thriving, long-term
businesses.
One of the common pitfalls is a lack of market depth. Business starts out booming as word of mouth sales keep you making
necklaces for friends and associates all over town. However, soon you will find that everyone you know who is a potential
customer has already bought several pieces from you and even gifts for their loved ones. The smaller the town you live in,
the bigger this problem is.
You will gain repeat business from loyal customers. However, this fraction of your consumer base may not be enough to
sustain your business if you do not branch out.
Solutions
Do not be passive in your selling efforts. Develop a plan for the distribution of your products that will insure you a
steady flow of transient customers in addition to your core of repeat clients. Make sure you include selling
locations that will tap into different customer groups, or market segments, not just the same people at several
different locations.
Tap into renewable customer sources. - Get your business name established in local schools, clubs, organizations and
complementary businesses that have a constant refresh in attendees. Old members will spread the word to new members
and so on.
Target Tourists! - Shows and festivals are a great way to do this, particularly if you are willing to travel beyond
your region of saturation. If you do not have a retail store of your own, get your jewelry shown in local
boutiques on the tourist route in your town.
Fashion Galleries – There are many galleries around the country that specifically focus on identifying new
talent and introducing their products to the market. These galleries can get your foot in the door by providing
valuable exposure to consumers and the media. Most also have well established web portals. Fragments and The
Giving Tree are two of our favorites.
Buyer Shows – If you have the desire and ability to sell your line wholesale, show at Markets and perhaps
even the Accessories Show in New York to catch the attention of boutiques and chain stores. Make sure you
are prepared and have the production capacity and portfolio development to be a serious contender for
these retailers.
Pitfall #2 – I love this necklace! I wish I could remember who made it…
Your jewelry may be beautiful, but if your customers can’t remember who made it after they bought it you need
to do better branding. Branding will attract new customers because it facilitates word of mouth referrals.
It will also expand your retail location possibilities. Resellers want proven brands in their stores that
people recognize and request.
Solutions
Branding is a multi-faceted effort that includes everything about the image and presentation of your products.
You will need to develop signatures attached to your items so that people remember who the designer was and
think positively about you the next time they think of buying jewelry. Name recognition makes it easier to
sell your pieces as your brand gains momentum. Again, you will need to develop a plan including all the
elements of your product marketing. The key is to consistently use your branding elements to increase
recognition.
Packaging – Do not sell your jewelry without some sort of unique tag or packaging including your logo,
or name. Stick with the same paper, colors, fonts and design elements on your packaging so it becomes
easily recognizable and memorable to your customers. Be unique!
Display – Offer display parameters or even supply displays free of charge to your retailers. Make sure the
displays are all the same and again feature the same colors, fonts and design elements. This doesn’t have
to be a whole rack. If your pieces are sold in cases, give your resellers an embossed brass plaque with
your logo and some display accents like flowers, glass marbles, candles, or vintage photographs. Give the
same pack to all of your resellers; this will make you stand out to your retail buyers as well as consumers.
Signature – Many designers have found success by adding a signature element to all of their pieces. Order
a small custom charm with your logo or related symbol to include near the clasp of every piece you make.
Other ideas include using the same unique clasp on all items, engraving the clasp on each item with your
name, or including another unique component.
Pitfall #3 – Lack of Confidence
New designers often lack the confidence required to give their business a healthy start. The best business
launches are bold. If you want people to buy your items you need to promote your products aggressively. Do
not just wait for customers to come to you. Word of mouth is a great tool, but it should not be relied on
exclusively. This is a difficult hurdle for many new to the trade because they are afraid of rejection. Not
everyone will like your work, but you are more likely to reach the customers who will by promoting.
Solutions
Advertise – Whether you have your own store or you wholesale to retailers, you need to advertise your products.
Request media kits from local publications including newspapers, magazines, newsletters and school publications.
Media kits are free and include all the information you need on designing an ad and costs for publication.
Many printers will even design an ad for you for an additional fee.
Use Public Relations (PR) – PR is basically free advertising. Many local publications look to businesses for
news features. Send press releases to your town newspaper when you open a new store, sponsor a charity event,
or participate in another unique event. Sometimes, papers will send a reporter to interview you to cover your
press release in an upcoming print edition.
Be creative – Get your business name out there any way you can. Donate your work for charity auctions or
as prizes for local contests or scholarships. Offer creative promotions such as necklace raffles for all
your customers in July or discounts on your birthday. Experiment with promotion ideas and see what works
best for you.
Don’t be afraid to cold call – Call boutiques in your area to see if they are interested in picking up a
new jewelry line. The worst they can do is say “no.” If they are at all interested offer to set an
appointment to show them your line and talk about a sales agreement. Or, you can offer to send them a
brochure ahead of time. To stand out from others take them out to a nice lunch, offer to provide display
materials, offer to advertise the brand locally, have a color brochure to leave with them; and above
all present yourself as an organized professional. Be willing to invest in the partnership with your
resellers. The more you can do for them, the more they will do for you.
NEXT EDITION’S FEATURE: Negotiating Sales contracts with Resellers and Chains
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